Up to 9% interest rates: FD rates in may, small fin banks lead

In May 2025, small finance banks are offering the highest FD interest rates, with NorthEast Small Finance Bank leading at 9%. Explore the best rates across small finance, private, public, and foreign

Fixed deposits (FDs) remain a popular investment option among risk-averse savers, offering guaranteed returns over a fixed period. According to data compiled by Policybazaar.com, in May 2025, small finance banks continue to offer the most attractive interest rates on FDs. Below are the best FD rates offered by the banks across the sectors and a table containing detailed rates on different tenures.

 

Small finance banks FD rates

 

For investors seeking the highest returns, NorthEast Small Finance Bank tops the list, offering up to 9 per cent for general depositors for the tenure of 18 months 1 day to 18 months 2 days. Following closely is Unity Small Finance Bank, providing 8.60 per cent on 1001 days deposits. Suryoday Small Finance Bank secures the third spot with 8.60 per cent on a tenure of 5 years.

 

These rates are significantly higher than what most large commercial banks offer, making small finance banks an appealing choice for those looking to earn more interest on their principal amount   

 

Below is the detailed table of the small finance banks’ interest rates and the tenures they’re offering.

 

Bank Fixed Deposit Rates
Bank Name	Interest Rates (p.a.)
	Highest slab		1-year tenure (%)	3-year tenure (%)	5-year tenure (%)
	%	Tenure
SMALL FINANCE BANKS
AU Small Finance Bank	7.75	18 months	7.00	7.50	7.25
Equitas Small Finance Bank	8.05	888 days	7.90	7.75	7.25
ESAF Small Finance Bank	7.75	444 days	5.00	6.25	6.00
Jana Small Finance Bank	8.20	5 years	7.50	8.05	8.20
NorthEast Small Finance Bank	9.00	18 months 1 day to 18 months 2 days	7.00	8.75	8.00
Suryoday Small Finance Bank	8.60	5 years	7.90	8.40	8.60
Ujjivan Small Finance Bank	8.05	18 months	7.90	7.20	7.20
Unity Small Finance Bank	8.60	1001 days	7.25	8.15	8.15
Utkarsh Small Finance Bank	8.25	2 years to 3 years	6.25	8.25	7.75

 

  Private banks FD rates

 

Among private sector banks, SBM Bank stands out by offering 8.05 per cent for a tenure of above 18 months to less than 2 years and 3 days. DCB and IndusInd Bank follow with 7.75 per cent on tenures of 15 months to less than 21 months and 15 months to 16 months, respectively. RBL and Yes Bank also offer competitive returns, with rates of 7.75 and 7.50 per cent, respectively.

 

Below is the detailed table of the private banks’ interest rates and the tenures they’re offering.

 

Bank Name	Interest Rates (p.a.)
	Highest slab		1-year tenure (%)

3-year tenure (%)

5-year tenure (%)

% Tenure PRIVATE SECTOR BANKS Axis Bank 7.05 15 months to less than 2 years 6.70 6.90 6.90 Bandhan Bank 7.75 1 year 7.75 7.25 5.85 City Union Bank 7.25 365 days 7.25 7.00 6.25 CSB Bank 7.40 13 months 5.00 5.75 5.75 DBS Bank 7.15 376 days to less than 2 years 7.00 6.50 6.50 DCB Bank 7.75 15 months to less than 16 months 7.10 7.25 7.25 Federal Bank 7.15 444 days 6.75 6.90 6.90 HDFC Bank 7.05 15 months to less than 21 months 6.60 6.90 6.75 ICICI Bank 7.05 18 months to 2 years 6.70 6.90 6.90 IDFC FIRST Bank 7.25 400 days to 500 days 6.25 6.25 6.00 IndusInd Bank 7.75 15 months to 16 months 7.50 7.25 7.10 Jammu & Kashmir Bank 7.30 888 days 7.00 6.75 6.50 Karur Vysya Bank 7.50 444 days 7.00 7.00 7.00 Karnataka Bank 7.15 555 days 7.00 6.50 6.50 Kotak Mahindra Bank 7.10 391 days to 23 months 6.80 6.90 6.20 RBL Bank 7.75 500 days 7.50 7.50 7.10 SBM Bank India 8.05 Above 18 months to less than 2 years 3 days 7.40 7.30 7.75 South Indian Bank 7.15 1 year 7 days 6.80 6.50 6.00 Tamilnad Mercantile Bank 7.30 400 days (TMB400) 7.25 6.50 6.50 YES Bank 7.50 12 months 1 day to 5 years 7.00 7.50 7.50

 

Public sector banks FD rates

 

Public sector banks offer comparatively lower returns. For example, the Central  Bank of India provides 7.50 per cent on a 3333-day FD,  followed by the Bank of Maharashtra and Canara Bank, both offering 7.25 per cent per annum on the tenure of 366 days and 444 days respectively.

 

Below is the detailed table of the public banks’ interest rates and the tenures they’re offering.

 

PUBLIC SECTOR BANKS
Bank of Baroda	7.10	444 days – BoB Square Drive Deposit Scheme	6.80	7.00	6.80
Bank of India	7.05	1 year	7.05	6.50	6.00