Which Bank Offers the Highest 1-Year FD Rates? Here’s the 2025 Update You Need

When it comes to keeping money safe, most people in India still trust one option the most—Fixed Deposits (FDs). They’re simple, predictable, and unlike the stock market, you don’t have to worry about losing sleep over daily ups and downs. Highest FD rates Bank in India 2025

But here’s the big question: if you’re locking in your money for 1 year, which bank is giving you the best FD rates right now? Let’s break it down so you know where your money can grow the most.

Why Do People Still Choose Fixed Deposits?

Even today, FDs remain the favorite choice for families, retirees, and young professionals who want safety + steady returns.

  • Guaranteed interest—no market risk.
  • Flexible tenures—from 7 days to 10 years.
  • Extra benefits for senior citizens—higher interest rates.
  • Peace of mind—your money is with a trusted bank.

1-Year FD Rates in Top Banks (2025)

Based on the latest updates from banks’ official websites, here’s what you’ll earn on a 1-year FD:

BankRegular CustomersSenior CitizensEffective From
HDFC Bank6.25%6.75%June 25, 2025
ICICI Bank6.25%6.75%Current
Kotak Mahindra Bank6.25%6.75%Current
State Bank of India (SBI)6.25%6.75%July 15, 2025
Union Bank of India6.40%6.90%Current

What This Means for You

If you’re planning a short-term FD for 1 year, you won’t see a massive difference across banks. But even a small 0.15% higher rate can mean more money in your pocket—especially if you’re investing larger amounts.

For example:

On a ₹5 lakh FD for 1 year, the difference between 6.25% and 6.40% interest is around ₹750 extra.

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