FD rates in Dec range from 5% to 8%: Check best offers across banks

Small finance banks lead returns, while PSU and private banks offer steadier FD yields across tenures

Fixed-deposit (FD) rates remained largely stable in December 2025, with small finance banks continuing to offer the highest returns for savers willing to lock in money for longer periods. Data compiled by Paisabazaar.com shows that while most large private and public sector banks are offering rates in the 6-7 per cent range, select small finance banks are paying interest of up to 8 per cent per annum on specific tenures. 

 

For conservative investors and retirees, FDs remain a preferred choice amid volatile equity markets, especially as real returns have improved marginally after the recent moderation in inflation.

 

Small finance banks’ FD rates 

Small finance banks continue to top the FD rate charts in December.

 

According to Paisabazaar.com, Jana Small Finance Bank and Suryoday Small Finance Bank are offering interest rates of up to 8 per cent per annum on five-year deposits.

 

Other lenders such as Slice Small Finance Bank, Utkarsh Small Finance Bank and Equitas Small Finance Bank are offering rates between 7.5 per cent and 7.75 per cent on select medium-term tenures.

 

However, these higher rates are often linked to specific deposit periods, such as 444 days, 888 days, or narrowly defined maturity windows. Savers should therefore check the exact tenure before investing.

 

Private banks

Among private sector banks, FD rates are more restrained. Paisabazaar.com data shows that most large private banks, including HDFC Bank, ICICI Bank and Axis Bank, are offering between 6.25 per cent and 6.6 per cent across one-year to five-year tenures.

 

Mid-sized private lenders such as Bandhan Bank, RBL Bank, YES Bank and SBM Bank India are offering relatively higher rates, ranging from 7 per cent to 7.3 per cent on select maturities. IDFC First Bank and DCB Bank are also offering up to 7 per cent on longer-term deposits.

 

PSU banks

Public sector banks continue to offer comparatively lower FD rates. According to Paisabazaar.com, most PSU banks are offering between 5.9 per cent and 6.5 per cent for one- to five-year deposits. State Bank of India’s popular Amrit Vrishti scheme offers 6.45 per cent for a 444-day tenure, while Bank of Baroda and Punjab National Bank are offering rates close to 6.5 per cent on special deposit schemes.

 

What depositors should keep in mind

 

While higher FD rates are attractive, savers should assess credit risk, liquidity needs and deposit insurance coverage. Deposits up to Rs 500,000 per bank are insured by the Deposit Insurance and Credit Guarantee Corporation.