Highest FD Interest Rates In 2025: Top 6 Banks For Long-Term Deposits
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Before investing in a fixed deposit (FD), it is always wise to compare the interest rates offered by different banks for the same tenure. Even a small difference in rates can significantly impact your overall returns in the long run.
For instance, a variation of just 50 basis points on an FD of ₹10 lakh can result in an additional income of nearly ₹25,000 over a 5-year period. This makes it crucial to carefully evaluate which bank offers the best FD rates before locking in your funds.
Interestingly, small finance banks and non-banking financial companies (NBFCs) usually provide slightly higher returns compared to larger banks. That said, a few leading private and public banks also stand out with attractive interest rates for long-tenure deposits.
Below is a comparison of six banks offering some of the highest FD interest rates in India for a 5-year tenure in 2025.
6 Banks Offering the Best 5-Year FD Rates in 2025
India’s largest private bank offers 6.4% interest for regular depositors and 6.9% for senior citizens on a 5-year FD. These updated rates became effective on 15 June 2025.
ICICI Bank provides 6.6% to regular depositors and 7.10% to senior citizens for a 5-year term deposit.
Kotak Mahindra Bank
Kotak Mahindra Bank offers 6.25% interest to regular depositors and 6.75% for senior citizens. The revised rates came into force on 18 June 2025.
Federal Bank
This private sector bank pays 6.5% per annum to regular depositors and 7% to senior citizens on 5-year deposits.
State Bank of India (SBI)
India’s largest public sector bank offers 6.05% to regular citizens and 7.05% to senior citizens. The higher rate for senior citizens includes an additional 50 basis points under the ‘SBI We-Care’ deposit scheme.
Union Bank of India
This public sector bank provides 6.4% interest for regular depositors and 6.9% for senior citizens on its 5-year fixed deposits.
Key Takeaway
Choosing the right fixed deposit with a favourable interest rate can make a noticeable difference in long-term wealth creation. While private banks like HDFC, ICICI, and Kotak offer competitive returns, senior citizens can particularly benefit from higher interest rates and special schemes offered by both public and private sector banks.
Disclaimer: This article is intended for informational purposes only and should not be treated as financial advice. Interest rates are subject to change at the discretion of banks. Before making any investment decision, it is strongly recommended to consult a SEBI-registered financial advisor to ensure the product aligns with your financial goals and risk profile.
For instance, a variation of just 50 basis points on an FD of ₹10 lakh can result in an additional income of nearly ₹25,000 over a 5-year period. This makes it crucial to carefully evaluate which bank offers the best FD rates before locking in your funds.
Interestingly, small finance banks and non-banking financial companies (NBFCs) usually provide slightly higher returns compared to larger banks. That said, a few leading private and public banks also stand out with attractive interest rates for long-tenure deposits.
Below is a comparison of six banks offering some of the highest FD interest rates in India for a 5-year tenure in 2025.
6 Banks Offering the Best 5-Year FD Rates in 2025
HDFC Bank
India’s largest private bank offers 6.4% interest for regular depositors and 6.9% for senior citizens on a 5-year FD. These updated rates became effective on 15 June 2025.
ICICI Bank
ICICI Bank provides 6.6% to regular depositors and 7.10% to senior citizens for a 5-year term deposit.
Kotak Mahindra Bank
Kotak Mahindra Bank offers 6.25% interest to regular depositors and 6.75% for senior citizens. The revised rates came into force on 18 June 2025.
Federal Bank
This private sector bank pays 6.5% per annum to regular depositors and 7% to senior citizens on 5-year deposits.
State Bank of India (SBI)
India’s largest public sector bank offers 6.05% to regular citizens and 7.05% to senior citizens. The higher rate for senior citizens includes an additional 50 basis points under the ‘SBI We-Care’ deposit scheme.
Union Bank of India
This public sector bank provides 6.4% interest for regular depositors and 6.9% for senior citizens on its 5-year fixed deposits.
Key Takeaway
Choosing the right fixed deposit with a favourable interest rate can make a noticeable difference in long-term wealth creation. While private banks like HDFC, ICICI, and Kotak offer competitive returns, senior citizens can particularly benefit from higher interest rates and special schemes offered by both public and private sector banks.
Disclaimer: This article is intended for informational purposes only and should not be treated as financial advice. Interest rates are subject to change at the discretion of banks. Before making any investment decision, it is strongly recommended to consult a SEBI-registered financial advisor to ensure the product aligns with your financial goals and risk profile.
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