Top 6 Banks Offering the Highest Interest on 1-Year FD: Check Full List of Rates for Regular and Senior Citizens

Fixed Deposits (FDs) continue to be the most trusted investment option for middle-class families and salaried individuals who prioritize safety and stable returns over market-linked risks. For many, even a small surplus is quickly locked into a one-year FD to ensure steady earnings. But before investing, it’s crucial to compare the interest rates offered by different banks, as even a marginal difference of 50 basis points can significantly impact long-term returns.

Currently, six major banks—both private and public sector—are offering some of the most attractive rates on one-year FDs. Here’s a detailed look at the banks providing the highest interest rates for regular depositors and senior citizens.

Why Compare FD Interest Rates?

Most banks tend to offer similar FD interest rates. However, comparing them before making an investment decision can be highly beneficial. Over time, a difference of even 0.25% or 0.50% can translate into thousands of extra earnings, especially for those who regularly roll over their deposits.

Banks Offering the Best 1-Year FD Rates

1. Union Bank of India (Public Sector)

• Regular Citizens: 6.40%

• Senior Citizens: 6.90%

• Effective From: August 20, 2025
  Union Bank of India currently leads among public sector banks by offering a higher rate for both regular and senior citizens compared to several private sector players.

2. HDFC Bank (Private Sector)

• Regular Citizens: 6.25%

• Senior Citizens: 6.75%

• Effective From: June 25, 2025
  India’s largest private sector bank continues to attract depositors with competitive FD rates, ensuring senior citizens get an additional 0.50% benefit.

3. ICICI Bank (Private Sector)

• Regular Citizens: 6.25%

• Senior Citizens: 6.75%
  ICICI Bank matches HDFC in offering 6.25% for general depositors and 6.75% for seniors.

4. Kotak Mahindra Bank (Private Sector)

• Regular Citizens: 6.25%

• Senior Citizens: 6.75%
  Kotak Mahindra Bank is on par with ICICI and HDFC, making it another popular option for those looking to invest in short-term FDs.

5. Federal Bank (Private Sector)

• Regular Citizens: 6.40%

• Senior Citizens: 6.90%

• Effective From: August 18, 2025
  Federal Bank stands out among private lenders with slightly higher returns than HDFC, ICICI, and Kotak, making it a strong choice for depositors.

6. State Bank of India (SBI) (Public Sector)

• Regular Citizens: 6.25%

• Senior Citizens: 6.75%

• Effective From: July 15, 2025
  As India’s largest public sector bank, SBI’s FD rates remain competitive and continue to be the first choice for millions of conservative investors.

Comparative Table of FD Rates (1-Year)

Bank Name	Type	Regular Interest Rate	Senior Citizen Rate	Effective Date
Union Bank of India	Public	6.40%	6.90%	Aug 20, 2025
HDFC Bank	Private	6.25%	6.75%	Jun 25, 2025
ICICI Bank	Private	6.25%	6.75%	–
Kotak Mahindra Bank	Private	6.25%	6.75%	–
Federal Bank	Private	6.40%	6.90%	Aug 18, 2025
SBI	Public	6.25%	6.75%	Jul 15, 2025

Key Takeaways for Investors

• Best Rates for Regular Citizens: Union Bank of India and Federal Bank at 6.40%.

• Best Rates for Senior Citizens: Union Bank of India and Federal Bank at 6.90%.

• Private Sector Consistency: HDFC, ICICI, and Kotak are all offering 6.25% for regular and 6.75% for seniors.

• Public Sector Strength: Despite being government banks, SBI and Union Bank are offering competitive rates.

Final Word

For investors planning a one-year FD, Union Bank of India and Federal Bank currently provide the highest returns. However, those who value long-standing trust and wider branch networks may still prefer SBI or HDFC Bank. Before locking in your money, always compare the latest rates, check effective dates, and evaluate your investment goals.

✅ Takeaway: Among one-year FDs, Union Bank of India and Federal Bank offer the best returns (6.40% for regular, 6.90% for seniors). However, HDFC, ICICI, Kotak, and SBI also remain strong options with competitive rates.