Highest FD interest rates 2025 – Due to the current Stock Market downturn, investors are once again focusing on safer choices like Fixed Deposits (FDs). The SENSEX and NIFTY50 benchmark indexes have fallen more than 3% in 2025, which has caused many people to reevaluate low-risk investments.
Although Stock Market swings are frequent, FDs provide stability, especially during volatile periods. These securities act as a hedge against stock market losses by guaranteeing returns at preset rates. Also Read – Start Investing In Stocks India
Highest FD Interest Rates 2025
| Bank/Institution | Maximum Interest Rate | Applicable Tenure | Notes |
|---|
| Bajaj Finance | Up to 8.85% p.a. | 42 months | Senior citizens receive up to 8.85% p.a., while general investors can earn up to 8.60% p.a. |
| ICICI Bank | Up to 7.80% p.a. | 15 months to 2 years | Senior citizens earn up to 7.80% p.a.; general citizens receive up to 7.25% p.a. |
| HDFC Bank | Special rates available | 35 and 55 months | Offers special edition FDs with higher interest rates for tenures of 35 and 55 months. Senior citizens benefit from an additional 0.50% interest. |
| Axis Bank | Competitive rates | Various tenures | Offers attractive rates, with senior citizens receiving an extra 0.50% interest. |
| Federal Bank | Competitive rates | Various tenures | Provides attractive rates for both general and senior citizens. |
| SBI (State Bank of India) | Up to 7.25% p.a. | 444 days | Introduced a 444-day deposit scheme with a 7.25% interest rate. |
Why Fixed Deposits Are Still Crucial
According to BankBazaar CEO Adhil Shetty, Fixed Deposits are a reliable investment choice in times of market decline. In contrast to stocks (Top Stock Picks for 2025)and other equity investments, fixed deposits are low-risk financial vehicles. “FD schemes provide guaranteed returns, which stabilize a portfolio,” Shetty explained. Also Read – Top AI-Powered Investment Tools
He pointed out that without subjecting investors to market risks, FDs assist them in achieving short-term financial objectives. “FDs guarantee your funds stay intact and generate guaranteed returns if you need money for travel within six months or your child’s school admission next year,” he continued.
FDs with terms ranging from six months to ten years are offered by banks and non-banking financial organizations (NBFCs), with interest rates that vary according to the amount and length of time. In an emergency, investors may take money out before it matures, although there may be penalties for certain withdrawals.
Interest Taxes On Fixed Deposits
Interest acquired on FDs is taxable, and if it exceeds a certain threshold, tax is withheld at source (TDS). The TDS threshold was increased in Budget 2025 from Rs 40,000 to Rs 50,000 for the general public and to Rs 1 lakh for the elderly.
For example, Ashutosh, a 32-year-antique Gorakhpur resident, receives Rs 75,000 in FD income every year. A 10% deduction is made from the extra amount, or Rs 7,500, as the TDS threshold for common residents is Rs 50,000.
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