Best fixed deposit rates in October 2025: 15 banks offering top returns

FD Rates in October 2025: Fixed deposits remain a safe bet, but the right mix of laddering, diversification and payout choice can boost returns. Here's how October 2025 FD rates stack up across banks

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Planning to invest in fixed deposits can feel confusing, especially when deciding between short-term liquidity and steady income. Much depends on how much flexibility you want with your money.

 

According to Adhil Shetty, chief executive of Bankbazaar.com, “Broadly, a combination of laddering and diversification helps, but it must be tailored to the needs of the investor to be effective.”

 

Laddering for flexibility 

 

Shetty explained that the first step is to split deposits across different maturities. “Usually 1, 3, 5 years works well, but choose your maturity intervals based on your liquidity requirements. This way, part of the money matures sooner giving you periodic liquidity, while longer FDs lock current higher rates,” he said.

 

He recommends keeping around 70% of the corpus in large public or private sector banks or the Post Office. Schemes such as the Post Office Monthly Income Scheme (POMIS) often provide returns that match or even beat commercial banks while offering the same level of security.

 

Another 20% could be placed with highly rated non-bank finance companies or housing finance companies, which tend to offer slightly higher interest. Finally, 10–15% of the corpus may be moved into alternatives such as the Senior Citizens’ Savings Scheme or RBI Floating Rate Bonds to add yield while still staying safe.

 

Banks FD Rates in October 2025 

According to data from PaisaBazaar, the current fixed deposit rates look like this: 

Small finance banks FD Rates

 

  ESAF Small Finance Bank

Highest: 7.6% (444 days)

1-year: 4.75%

3-year: 6%

5-year: 5.75%

 

Jana Small Finance Bank

Highest: 8% (5 years)

1-year: 7.25%

3-year: 7.5%

5-year: 8%

 

slice Small Finance Bank

Highest: 7.75% (18 months 1 day to 18 months 2 days)

1-year: 6.25%

3-year: 7.5%

5-year: 7%

 

Suryoday Small Finance Bank

Highest: 8.2% (5 years)

1-year: 7.4%

3-year: 7.25%

5-year: 8.2%

 

Utkarsh Small Finance Bank

Highest: 7.65% (2–3 years)

1-year: 6%

3-year: 7.65%

5-year: 7.25%

 

List of Private sector banks FD Rates

 

  Bandhan Bank

Highest: 7.2% (2 years to <3 years)

1-year: 7%

3-year: 7%

5-year: 5.85%

 

DCB Bank

Highest: 7.2% (27–28 months; 60–61 months)

1-year: 6.9%

3-year: 7%

5-year: 7%

 

Jammu & Kashmir Bank

Highest: 7.1% (888 days)

1-year: 6.6%

3-year: 6.75%

5-year: 6.5%

 

RBL Bank

Highest: 7.2% (18 months to 3 years)

1-year: 7%

3-year: 7.2%

5-year: 6.7%

 

SBM Bank India

Highest: 7.5% (5 years)

1-year: 6.9%

3-year: 7%

5-year: 7.5%

 

List of Public sector banks FD Rates

 

   

Bank of Maharashtra

Highest: 6.7% (366 days)

1-year: 6.2%

3-year: 6.2%

5-year: 6.1%

 

Central Bank of India

Highest: 6.75% (2222/3333 days)

1-year: 6.4%

3-year: 6.25%

5-year: 6.25%

 

Indian Bank

Highest: 6.7% (444 days)

1-year: 6.1%

3-year: 6.25%

5-year: 6%

 

Indian Overseas Bank

Highest: 6.7% (444 days)

1-year: 6.6%

3-year: 6.2%

5-year: 6.2%

 

Punjab & Sind Bank

Highest: 6.7% (444 days)

1-year: 6%

3-year: 6%

5-year: 6.1%

 

Choosing payout options

 

  Investors also need to decide between cumulative and payout deposits. “Choose between cumulative and payout options depending on your needs. If you are looking at a steady income stream, monthly or quarterly payout FDs may work best. Otherwise, cumulative deposits allow interest to compound and grow the capital more effectively,” said Shetty.

 

How the numbers play out

 

  For a one-year deposit at 6.60%, a principal of ₹10 lakh would yield different results depending on payout:

 

Cumulative: Maturity value around ₹10.71 lakh, interest of ₹71,693

Quarterly: Interest of ₹16,500 each quarter plus ₹5,500 in the final quarter, totalling about ₹71,500

Monthly: Interest of ₹5,500 per month, totalling ₹71,500

 

Over five years at 6.50%, the gap becomes wider:

 

Cumulative: Maturity value of about ₹13.7 lakh, interest gain of ₹3.7 lakh

Quarterly: Interest of about ₹16,250 every three months

Monthly: Income of around ₹5,416 per month, or ₹3.25 lakh in total interest over the term