Year Ender 2025: Fixed Deposits Interest Rates Across Banks and Best Returns

As 2025 comes to an end, fixed deposit (FD) interest rates across Indian banks offer savers a range of options to earn stable returns. According to the latest published rates as of 18 December 2025, general depositors and senior citizens can earn anywhere between 6.00 per cent and 7.25 per cent per annum at most public and private sector banks, depending on the tenure of their deposits.

Public Sector Banks

In public sector banks, the range of interest offered on FDs by the general public ranges from 6.00-7.25 per cent for key tenures. State Bank of India (SBI) provides its maximum interest rate of 6.45 per cent for common account holders, with a 1-year term at 6.25 per cent, 3-year term at 6.30 per cent, and 5-year term at 6.05 per cent.

Bank of India offers interest of up to 6.70 per cent for significant maturities, with 1-year term at 6.25 per cent and 5-year term at 6.00 per cent. Other public sector banks, like Bank of Baroda, Indian Bank, and Punjab & Sind Bank, offer interest ranging from 6.40-6.60 per cent for significant maturities.

Senior citizens also earn an extra premium across public sector banks. SBI senior citizen FD rates offer 7.05 per cent for longer deposits, while Bank of India offers a maximum of 6.90 per cent. Nearly all the PSU banks offer an extra 0.50 per cent on the basic rates for the benefit of senior citizens.

Private Sector Banks

Private banks also provide competitive interest rates on general deposits. ICICI Bank and Axis Bank offer interest rates of up to 6.60 per cent on general FDs. HDFC Bank offers an interest rate of 6.45 per cent on general deposits, keeping in mind the interest rate cut in mid-December.

Kotak Mahindra Bank provides an interest rate of 6.25 per cent on 1-year deposits, while long-term deposits provide an interest rate of up to 6.70 per cent. City Union Bank, IDBI Bank, and Karnataka Bank also provide an interest rate of 6.60-6.75 per cent on general deposits.

In private sector banks, senior citizens also enjoy an additional rate of yield. The senior FDs of ICICI Bank offer a maximum of 7.20 per cent per annum, and for Axis Bank, FD interest rates for senior citizens for a holding period of 1-2 years can yield around 7.10 per cent if the deposit amount is around Rs 3-5 crore.

Small Finance Banks

For savers seeking the maximum possible returns on their savings in the banking sector, Small Finance Banks (SFBs) continue to lead the market. Unity Small Finance Bank offers a maximum interest rate of 6.75 per cent per annum for the general public, whereas Suryoday Small Finance Bank and Jana Small Finance Bank provide interest up to 8.24 per cent on select maturities. Ujjivan Small Finance Bank also remains competitive with a maximum rate of 7.45 per cent.

Post Office Fixed Deposits

Post Office term deposits remain a cornerstone for conservative portfolios, offering 1‑year deposits at 6.90 per cent, 3‑year at 7.10 per cent, and 5‑year at 7.50 per cent per annum. It is important for investors to note that, unlike commercial banks, the Post Office does not offer a senior citizen premium on these standard term deposits; the rates are uniform for all age groups.