Fixed Deposits (FDs) remain a popular option for people who want stable and risk-free returns. In 2025, many Indian banks have revised their FD interest rates after the Reserve Bank of India (RBI) cut the repo rate earlier this year. Most large banks are now offering lower returns, especially for short-term deposits. This article gives a detailed look at the latest FD rates and investment options in 2025.
SBI FD Rates – July 2025
State Bank of India (SBI) made changes to its FD interest rates on July 15, 2025. The new rates are slightly lower for short-term deposits.
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Latest SBI FD interest rates:
| Tenure | General Rate | Senior Citizen Rate |
|---|---|---|
| 46 – 179 days | 4.90% | 5.40% |
| 180 – 210 days | 5.65% | 6.15% |
| 211 days – < 1 year | 5.90% | 6.40% |
| 1 year – 2 years | 6.80% | 7.30% |
| 2 years – 3 years | 6.75% | 7.25% |
| 3 years – 5 years | 6.60% | 7.10% |
| 5 years – 10 years | 6.45% | 7.05% |
SBI is also offering a special Amrit Vrishti FD scheme. It is a 444-day deposit with higher returns. The interest is 6.60% for general customers and 7.10% for senior citizens. For those above 80 years, the rate goes up to 7.20%.
If you are planning to open a joint account, you can also explore how to open a joint FD account and understand its benefits.
Why Are FD Rates Falling in 2025?
The fall in FD interest rates is mainly due to the RBI’s decision to cut the repo rate by 50 basis points earlier this year. When the repo rate is reduced, banks tend to lower their lending and deposit rates.
Top banks like HDFC, ICICI, PNB, Kotak Mahindra, and DCB Bank have reduced their FD rates by 10 to 25 basis points since June 2025. Most of these cuts affect FDs with less than one-year maturity.
Small Finance Banks Offering Higher Returns
Despite rate cuts by large banks, small finance banks (SFBs) are offering higher interest to attract new customers.
| Bank | Highest FD Rate (General) | Senior Citizen Rate |
|---|---|---|
| Slice Bank | 8.50% (18-month FD) | 9.00% |
| Suryoday SFB | 8.40% | 9.10% (5-year FD) |
| Bandhan Bank | 7.40% | 7.90% |
These banks are suitable for people who are looking for better returns and can take a little more risk. Always check the financial stability of the bank before investing.
Best Options for Senior Citizens
Senior citizens are still getting better returns even when general rates are going down. The Senior Citizen Savings Scheme (SCSS) from the Post Office offers 8.2% interest. This is paid quarterly and is fully backed by the Government of India.
If you’re a senior and planning your tax-saving strategy, it’s good to know about Clubbing of Income in India Explained and how it may affect your FD interest income.
Also, if your FD interest is subject to TDS and the account is in a different PAN holder’s name, you must learn How to Claim TDS in ITR If PAN Holder Is Different. Filing your income tax return correctly ensures you don’t lose your money to tax confusion.
Final Thoughts – How to Choose the Right FD
- SBI gives up to 6.80% for regular depositors and 7.30% for senior citizens.
- Amrit Vrishti FD scheme offers 6.60% to 7.20% depending on your age group.
- Large banks are offering lower rates because of the RBI’s repo rate cut.
- Small finance banks like Slice and Suryoday are offering up to 8.50%.
- Senior citizens can consider SCSS and long-term FDs for better income.
Before investing, compare FD rates across banks. Understand your risk level, tenure, and tax implications. If you’re a beginner, start with safe public banks or government-backed schemes. For slightly higher returns, explore private and small finance banks—but always do a background check on their financial health.
Disclaimer: FD rates are subject to change based on RBI policies and bank decisions. Please verify the latest rates with the bank before investing.
Need help comparing FD rates or planning tax-saving options? Drop a message and get the best advice tailored to your needs.
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