Fixed Deposit Rates 2025: Top 7 Banks Offering the Highest 1-Year Term Returns

When it comes to fixed deposits (FDs), not all banks are created equal - at least when it comes to the interest rates they offer. A small difference in rates can translate into a noticeable boost in your earnings, especially over longer periods. Taking time to compare options can help you make your money work harder.

For example, locking ₹10 lakh in a 5-year FD at 6.50% instead of 6% can earn you an extra ₹5,000 in just one year. Stretch that to three years, and you could gain an additional ₹15,000 without any extra effort!

Here’s a snapshot of current FD rates for a 1-year tenure:

Private Banks

• HDFC Bank: 6.25% for regular citizens, 6.75% for senior citizens (from 25 June 2025).

• ICICI Bank: 6.25% for regular, 6.75% for senior citizens (tenure between 1 year to 18 months). Offers top rates for longer tenures.

• Kotak Mahindra Bank: 6.25% for regular, 6.75% for senior citizens (effective 20 August 2025).

• Axis Bank: 6.25% for regular, 6.75% for senior citizens.

• Federal Bank: 6.40% for regular, 6.90% for senior citizens (from 18 August 2025).

Public Sector Banks

• State Bank of India (SBI): 6.25% for regular, 6.75% for senior citizens (from 15 July 2025).

• Union Bank of India: 6.40% for regular, 6.90% for senior citizens (from 20 August 2025).

While many banks offer similar rates, opting for the one that offers slightly higher interest can significantly improve your earnings over time. Always compare rates before investing and choose the option that best aligns with your financial goals.


Disclaimer: The interest rates mentioned in this article are based on information available as of August 2025 and are subject to change without prior notice. Rates may vary depending on the bank’s policies, tenure, and account holder type. It is recommended to verify the latest rates directly with the bank before making any investment decisions. This article is for informational purposes only and should not be considered as financial advice. Please consult with a financial advisor to determine the best option for your individual needs.