FD rates up to 8.95%: Where to park money as markets reel from Trump tariff

FDs stay popular as market slips after Trump's India tariff move; here's where banks and NBFCs are offering up to 8.95% interest as of July 30, 2025

The stock market traded in the red on Thursday as global jitters intensified following US President Donald Trump’s announcement of a 25 per cent tariff on Indian goods. The move triggered risk-off sentiment, adding pressure to an already volatile market. Amid this uncertainty, fixed deposits (FDs) continue to be seen as a steady option for conservative savers, despite recent rate cuts by banks.

 

The Reserve Bank of India has lowered the repo rate by 100 basis points across three consecutive policy meetings in 2025. Most banks have since reduced their deposit and lending rates. Even so, many savers remain drawn to the safety and predictability of FDs.

 

 

“Even with interest rates softening, fixed deposits remain a dependable choice for conservative savers. Their biggest strength lies in capital safety, predictable returns, and quick liquidity, regardless of market performance,” said Adhil Shetty, CEO, BankBazaar.com.

 

He added, “With global cues like tariff threats unsettling investors, FDs offer the kind of stability many seek in turbulent times.”

 

Here’s a look at some of the highest FD rates currently on offer across small finance banks, private sector banks, and non-banking financial companies (NBFCs), based on data from PaisaBazaar as of July 30, 2025.

 

Best FD Rates by Small finance banks

 

Slice Small Finance Bank offers the highest slab return among its peers—8.50 per cent—for a very narrow tenure window between 18 months 1 day and 18 months 2 days. Its 3-year deposit offers 8.25 per cent, while the 5-year option is at 7.75 per cent. The 1-year FD fetches a lower 6.75 per cent. The sharp jump in rates for a specific slab makes it appealing for short-term investors willing to lock in funds precisely.

 

Jana Small Finance Bank provides a top rate of 8.20 per cent for 5-year FDs. It also offers 7.50 per cent for a 1-year tenure and 7.75 per cent for 3 years, making it a consistent option for those seeking high returns across different durations.

 

Suryoday Small Finance Bank matches this trend with an 8.40 per cent return on 5-year FDs. Its 3-year rate stands at 8.15 per cent, while both 1-year and 5-year deposits earn 7.50 per cent and 8.40 per cent, respectively. The uniformity in rates across tenures makes it a solid pick for medium to long-term savers.

 

Unity Small Finance Bank offers 7.75 per cent for a 1001-day deposit. While the 1-year rate is relatively low at 6.50 per cent, its 3-year and 5-year options offer a consistent 7.25 per cent, appealing to those seeking balance across terms.

 

Utkarsh Small Finance Bank gives a peak return of 7.65 per cent for FDs maturing in 2 to 3 years. The 1-year rate is lower at 6.00 per cent, but both the 3-year and 5-year options offer 7.65 and 7.25 per cent, respectively, providing mid-range consistency.

 

Equitas Small Finance Bank offers a peak of 7.60 per cent for a tenure of 888 days. Other durations offer slightly lower rates—7.25 per cent for both 1-year and 3-year terms, and 7.00 per cent for a 5-year FD. It suits those looking for moderate returns over shorter horizons.

 

ESAF Small Finance Bank also offers 7.60 per cent but only for a specific 444-day slab. Its 1-year rate is much lower at 4.75 per cent, though it rises to 6.00 per cent for 3-year FDs and 5.75 per cent for 5 years. Despite the appealing slab rate, the overall offering is less competitive over regular tenures.

 

Ujjivan Small Finance Bank’s highest rate is 7.60 per cent for a 2-year deposit. It offers 7.50 per cent for 1 year and 7.20 per cent for both 3- and 5-year tenures, placing it just below top competitors for longer-term savings.

 

Best FD Rates by Private banks

 

Bandhan Bank gives a peak return of 7.40 per cent for deposits between 2 years and less than 3 years. It offers 7.25 per cent for both 1-year and 3-year deposits, but its 5-year FD earns only 5.85 per cent, making it a stronger option for short- to mid-term savers.

 

CSB Bank also tops out at 7.40 per cent, available for a 13-month slab. However, its standard 1-year deposit earns just 5.00 per cent, and the 3- and 5-year tenures yield 5.75 per cent, which places it on the lower end among private banks.

 

DCB Bank offers 7.40 per cent for a very narrow slab of 27 to 28 months. For 1-, 3-, and 5-year FDs, it maintains a flat 7.00 per cent, offering consistency rather than peak yields.

 

SBM Bank India offers its highest rate of 7.60 per cent for terms slightly above 18 months but below 2 years and 3 days. Its 1-year and 3-year deposits both yield 7.05 per cent, while the 5-year FD stands at 7.50 per cent. It presents a relatively stable return profile across tenures.

 

Best Corporate fixed deposits

 

Muthoot Capital Services, rated A+ by CRISIL, offers the highest return among corporate FDs at 8.95 per cent for a 36-month term. It also provides 7.90 per cent for a 1-year deposit and 8.50 per cent for 5 years. Senior citizens receive an additional 0.25 per cent. While returns are strong, the lower credit rating compared to AAA peers suggests slightly higher risk.

 

Manipal Housing Finance Syndicate, with an ACUITE A rating, offers 8.25 per cent across 1-, 2-, and 3-year tenures, dipping to 7.75 per cent for 5 years. It gives a 0.25 per cent boost to senior citizens and is suited to short- to medium-term savers comfortable with moderate risk.

 

Can Fin Homes, rated AAA by ICRA, offers 8.00 per cent for a 3-year FD. Its 1-year and 5-year rates are lower at 6.50 and 6.75 per cent, respectively. With senior citizen benefits of 0.25 to 0.50 per cent, it appeals to conservative investors focused on credit quality.

 

Credit ratings on corporate FDs

 

When evaluating company FDs, investors often refer to credit ratings issued by agencies such as CRISIL, ICRA, and CARE. These indicate the issuer’s ability to repay.

 

• AAA or AA suggests low risk and strong repayment capacity

• A or BBB indicates moderate risk with some market sensitivity

• BB or lower denotes higher risk and greater likelihood of default

 

While ratings offer a useful reference point, it’s still worth checking the company’s financials and reputation before investing.