Over 20 banks offering 8% and more interest rate: Boon for FD investors

When comparing the top rates across different categories of banks, small finance banks take the lead, with Unity Small Finance Bank and NorthEast Small Finance Bank offering an impressive 9% interest

With the increasing demand for safe and high-yielding investment options, fixed deposits (FDs) continue to be a popular choice for many investors in India. As of February 5 2025, over 20 banks have stepped up their game, offering fixed deposit interest rates of 8% and above, shows data compiled by Paisabazaar.com

 

Here’s a list of 20 banks offering 8% or more on fixed deposit interest rates as of February 2025:

 

Small Finance Banks:

• Unity Small Finance Bank – 9.00% (1001 days)
• NorthEast Small Finance Bank – 9.00% (18 months 1 day to 36 months)
• Suryoday Small Finance Bank – 8.60% (5 years)
• ESAF Small Finance Bank – 8.38% (888 days)
• Jana Small Finance Bank – 8.25% (1 year to 3 years)
• Equitas Small Finance Bank – 8.25% (888 days)
• Ujjivan Small Finance Bank – 8.25% (12 months)
• AU Small Finance Bank – 8.10% (18 months)
• Utkarsh Small Finance Bank – 8.50% (2 years to 3 years; 1500 days)

 

Private Sector Banks:

• Bandhan Bank – 8.05% (1 year)
• RBL Bank – 8.00% (500 days)
• YES Bank – 8.00% (18 months)
• IDFC First Bank – 7.90% (400 to 500 days)
• DBS Bank – 7.50% (376 to 540 days)

 

Foreign Banks:

• Deutsche Bank – 8.00% (Above 1 year to 3 years)
• Public Sector Banks:
• Central Bank of India – 7.50% (1111 days; 3333 days)
• Bank of Maharashtra – 7.45% (366 days)
• Bank of India – 7.30% (400 days)
• Punjab & Sind Bank – 7.45% (555 days)
• Canara Bank – 7.40% (3 years to less than 5 years)

 

These are the top 20 banks offering interest rates of 8% or more for various tenures. Small finance banks dominate the list, followed by private sector banks and foreign banks, with public sector banks also providing competitive rates.

 

Top 10 Small Finance Banks Offering the Best FD Rates

 

• Unity Small Finance Bank – 9.00% (1001 days)
• NorthEast Small Finance Bank – 9.00% (18 months 1 day to 36 months)
• Suryoday Small Finance Bank – 8.60% (5 years)
• Utkarsh Small Finance Bank – 8.50% (2 years to 3 years; 1500 days)
• Jana Small Finance Bank – 8.25% (1 year to 3 years)
• Equitas Small Finance Bank – 8.25% (888 days)
• Ujjivan Small Finance Bank – 8.25% (12 months)
• AU Small Finance Bank – 8.10% (18 months)
• ESAF Small Finance Bank – 8.38% (888 days)
• Unity Small Finance Bank – 8.15% (1001 days)

 

Top 10 Private Sector Banks Offering the Best FD Rates

Private sector banks are known for providing competitive rates, and many have recently adjusted their FD offerings to stay attractive. Below are the top ten:

 

• Bandhan Bank – 8.05% (1 year)
• RBL Bank – 8.00% (500 days)
• YES Bank – 8.00% (18 months)
• DBS Bank – 7.50% (376 to 540 days)
• IndusInd Bank – 7.99% (1 year 5 months to 1 year 6 months)
• ICICI Bank – 7.25% (15 months to 2 years)
• HDFC Bank – 7.40% (55 months)
• IDFC First Bank – 7.90% (400 to 500 days)
• Axis Bank – 7.25% (15 months to less than 2 years)
• DCB Bank – 8.05% (19 months to 20 months; above 26 months to less than 61 months)

 

Top 10 Public Sector Banks Offering the Best FD Rates

• Bank of Maharashtra – 7.45% (366 days)
• Central Bank of India – 7.50% (1111 days; 3333 days)
• Bank of India – 7.30% (400 days)
• Bank of Baroda – 7.30% (400 days - Bob Utsav)
• Canara Bank – 7.40% (3 years to less than 5 years)
• Indian Overseas Bank – 7.30% (444 days)
• Punjab & Sind Bank – 7.45% (555 days)
• Union Bank of India – 7.30% (456 days)
• State Bank of India – 7.25% (444 days - Amrit Vrishti)
• Indian Bank – 7.30% (400 days - IND SUPER)

Top Foreign Banks Offering the Best FD Rates

Foreign banks also have fixed deposit options for investors seeking diversity. Here are the best rates available:

 

• Deutsche Bank – 8.00% (Above 1 year to 3 years)
• Standard Chartered Bank – 7.50% (1 year to 375 days)
• HSBC Bank – 7.50% (601 to 699 days)

 

Comparison of the Best FD Rates Across Categories

When comparing the top rates across different categories of banks, small finance banks take the lead, with Unity Small Finance Bank and NorthEast Small Finance Bank offering an impressive 9.00% for their fixed deposits. On the other hand, private sector banks offer competitive rates, with Bandhan Bank and RBL Bank leading at 8.05% and 8.00%, respectively.

 

For those seeking the safest option with strong returns, public sector banks offer solid choices as well, with Bank of Maharashtra and Central Bank of India leading at 7.45% and 7.50%, respectively.

 

While foreign banks such as Deutsche Bank and Standard Chartered Bank offer some attractive FD rates, the highest rates are generally seen in small finance and private sector banks.