Only 10 banks currently offer FD at 8% and more: Should you lock in now?

As of April 2025, several small finance banks in India are offering FD rates as high as 9%, making them the go-to choice for savvy investors looking to maximize their savings!

A total of 10 banks in India are currently offering fixed deposit (FD) interest rates of 8% and above, shows data analysed by Paisabazaar. This includes 7 small finance banks, such as NorthEast Small Finance Bank (offering up to 9%) and Suryoday Small Finance Bank (8.60%), which lead the pack with some of the highest rates. Additionally, two private sector banks—Bandhan Bank (8.05%) and RBL Bank (8.00%)—are offering competitive FD rates above 8%. One foreign bank, Deutsche Bank, is also offering an 8% FD rate. Public sector banks are not offering rates at this level, reflecting a significant gap in the higher-yielding FD market. 

Small Finance Banks: Leading the Pack

Small finance banks have consistently been offering some of the highest FD rates, with several banks offering rates exceeding 8% annually. Among these, NorthEast Small Finance Bank offers the highest rate of 9% for a tenure of 18 months to 36 months, followed by Suryoday Small Finance Bank, which provides 8.60% for a 5-year tenure. Other notable players include Equitas Small Finance Bank, with 8.25% for a tenure of 888 days, and Utkarsh Small Finance Bank, which offers up to 8.50% for 2 to 3-year tenures. 

Small Finance Banks (Banks offering 8% and above):

Equitas Small Finance Bank - 8.25%

 

Jana Small Finance Bank - 8.25%

 

NorthEast Small Finance Bank - 9.00%

 

Suryoday Small Finance Bank - 8.60%

 

Ujjivan Small Finance Bank - 8.25%

 

Unity Small Finance Bank - 8.60%

 

Utkarsh Small Finance Bank - 8.50%

 

Total small finance banks offering 8% and above: 7 banks

 

Here’s a snapshot of FD rates for popular small finance banks: 

 

Private Banks: Competitive, But Slightly Lower

Private sector banks are generally offering interest rates below 8% for most of their FD schemes. Among the top private banks, Bandhan Bank stands out with 8.05% for a 1-year FD, while RBL Bank and DBS Bank are offering 8.00% for tenures of 500 days and 376 to 540 days, respectively. Other private sector banks, such as ICICI Bank and HDFC Bank, offer FD rates between 7.25% and 7.90%, depending on the tenure. 

 

Public Sector Banks: Stable but Lower Returns

Public sector banks tend to offer more stable and secure investments, though their interest rates are generally lower compared to small finance and private banks. 

  The highest FD rate among public banks is 7.50%, which can be found at Central Bank of India and Bank of Baroda for specific tenures. Other public banks like State Bank of India and Union Bank of India offer interest rates around 7.00% to 7.30%, depending on the tenure. 

 

Foreign Banks: Limited Offerings Above 8%

Foreign banks in India, such as Deutsche Bank, HSBC, and Standard Chartered Bank, generally offer competitive FD rates but are more conservative than the small finance and private banks. Deutsche Bank offers up to 8.00% for a 1-year to 3-year FD, while HSBC and Standard Chartered Bank have FD rates ranging from 4.00% to 7.50%, depending on the tenure.