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:
Bank | Regular Customers | Senior Citizens | Effective From |
---|---|---|---|
HDFC Bank | 6.25% | 6.75% | June 25, 2025 |
ICICI Bank | 6.25% | 6.75% | Current |
Kotak Mahindra Bank | 6.25% | 6.75% | Current |
State Bank of India (SBI) | 6.25% | 6.75% | July 15, 2025 |
Union Bank of India | 6.40% | 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.