Top 10 Banks Offering the Highest FD Interest Rates in 2025: Extra Benefits for Senior Citizens

By Siddhi Jain | Oct 27, 2025, 10:15 IST

When it comes to safe and reliable investment options, Fixed Deposits (FDs) remain one of India’s most trusted choices. They not only ensure capital protection but also provide steady returns, making them especially attractive during times of market volatility. However, before locking in your money, it’s crucial to compare FD rates across banks—because the returns can vary significantly based on the bank and deposit tenure.

As of October 2025, several small finance banks and private sector banks are offering attractive FD rates, some even exceeding 8% per annum. Additionally, senior citizens enjoy extra interest rates, typically between 0.25% and 0.75% more than the regular rates.

Here’s a detailed look at the 10 banks currently offering the highest FD interest rates in India and what investors should know before investing.

1. ESAF Small Finance Bank – Up to 8.10% Interest

ESAF Small Finance Bank is offering 8.10% interest on FDs for a tenure of 444 days. For senior citizens, the rate is even higher, making it one of the most rewarding options in the market right now.

2. Jana Small Finance Bank – 8.00% on 2–5 Year Deposits

Jana Small Finance Bank is offering 8.00% interest on FDs with tenures ranging between 2 to 3 years and 5 years. This is an excellent choice for small and medium-term investors seeking a balance between safety and returns.

3. Suryoday Small Finance Bank – 8.10% for 5-Year Deposits

Suryoday Bank provides an 8.10% return on 5-year fixed deposits, making it ideal for long-term savers. Senior citizens can earn even more through the bank’s special rate for older investors.

4. Utkarsh Small Finance Bank – Market-High 8.15%

Utkarsh Small Finance Bank currently offers 8.15% on 2 to 3-year FDs, which is among the highest interest rates available in the Indian banking sector right now. For seniors, the return is slightly higher, enhancing overall earnings potential.

5. Bandhan Bank – 7.70% for Mid-Term Deposits

For deposits with tenures of 2 to under 3 years, Bandhan Bank offers 7.70% interest. Within the private sector, this rate stands out as one of the most competitive.

6. DCB Bank – 7.70% with Senior Citizen Add-On

DCB Bank offers 7.70% interest for FDs with a 37 to 38-month tenure. Investors aged 70 and above receive an additional 0.05%, providing a slight edge for senior investors looking for secure, mid-term options.

7. RBL Bank – 7.70% with Extra Return for Super Seniors

RBL Bank provides 7.70% interest on deposits ranging from 18 months to 3 years. Meanwhile, super senior citizens (above 80 years) are eligible for an additional 0.25% return, making it a solid option for older investors seeking liquidity and returns.

8. YES Bank – 7.75% for 3–5 Year Deposits

For tenures between 3 years and under 5 years, YES Bank is offering 7.75% interest. This makes it a good choice for those planning medium to long-term investments with guaranteed income.

9. Central Bank of India – 7.25% on Special Schemes

The Central Bank of India is offering 7.25% interest for special FD schemes of 2222 days and 3333 days. Super senior citizens enjoy an additional benefit on these schemes, making them a reliable and government-backed option.

10. Indian Bank & Indian Overseas Bank (IOB) – 7.20% for 444 Days

Both Indian Bank and Indian Overseas Bank (IOB) are offering 7.20% interest on FDs for 444 days. Senior citizens aged 80 years and above can earn an extra 0.25% interest, making these public sector banks a safe and dependable choice.

Why Senior Citizens Should Consider FD Investments

For retirees or those nearing retirement, FDs provide stable income, zero market risk, and assured returns. The extra interest benefit for seniors ensures that their savings grow faster, helping them manage regular expenses and medical costs without worry.

Tips Before You Invest

Compare interest rates and tenures before booking an FD.
Check for premature withdrawal penalties and auto-renewal options.
Diversify by investing in multiple FDs across different banks or tenures to ensure liquidity and flexibility.
Always verify if the FD scheme is covered under the DICGC insurance limit (up to ₹5 lakh per depositor, per bank).

Final Takeaway

Small finance banks are currently leading the race with FD returns above 8%, followed closely by private and public sector banks offering between 7% and 7.75%. Whether you’re a young investor looking for safe returns or a senior citizen seeking regular income, choosing the right FD based on tenure, bank reputation, and your liquidity needs can help maximize your earnings safely in 2025.