The Reserve Bank of India has reduced the repo rate, leading banks to soon lower fixed deposit interest rates

Make the most of the repo rate cut, book FD with interest rate up to 9% before banks start reducing the interest rate Small finance banks currently offer the highest FD rates, up to 9%, while private and public sector banks offer relatively lower rates. Investors should act quickly to benefit from existing higher rates

The Reserve Bank of India has lowered the repo rate by 25 basis points. After this rate cut, banks will begin lowering their interest rates shortly, so fixed deposit (FD) investors have the final opportunity to book their FDs at the current higher rates.

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There are chances that the current high rates may soon disappear, therefore, if you have funds to invest in a fixed deposit, now might be the best time to do so.

Last window for FD investors to book FDs at higher rate has officially started as RBI cuts repo rate after a 5 years gap

If you are looking to lock your funds in fixed deposit before banks start cutting FD interest rates, here is a quick comparison of private banks, public banks and small finance banks highest fixed deposit interest rates as on February 7, 2025 for general citizens.

Budget 2025 hikes TDS limit for senior citizens: Here is a list of banks offering highest rates on 1-year FDs for senior citizens

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Small Finance Banks
Small finance banks provide the most competitive interest rates. NorthEast Small Finance Bank and Unity Small Finance Bank offer the highest rates at 9% for tenures between 18 months and 3 years and 1001 days, respectively. Other banks, like Suryoday Small Finance Bank, offer the highest FD interest rate of 8.6% on a 5-year tenure, and Utkarsh Small Finance Bank offers an FD interest rate of 8.5% for up to 3 years FD tenure.

Bank Name	Interest Rates (p.a.)
	Highest slab
	%	Tenure
SMALL FINANCE BANKS
AU Small Finance Bank	8.1	18 months
Equitas Small Finance Bank	8.25	888 days
ESAF Small Finance Bank	8.38	888 days
Jana Small Finance Bank	8.25	1 year to 3 years
NorthEast Small Finance Bank	9	18 months 1 day to 36 months
Suryoday Small Finance Bank	8.6	5 years
Ujjivan Small Finance Bank	8.25	12 months
Unity Small Finance Bank	9	1001 days
Utkarsh Small Finance Bank	8.5	2 years to 3 years; 1500 days

Private Sector Banks
Private banks offer slightly lower FD rates, ranging between 7% and 8.25%. Bandhan Bank offers the highest FD interest rate of 8.05% on a 1-year tenure, DCB Bank is offering an interest rate of 8.05% FD tenure for 19-20 months, and SBM Bank India offers 8.25% interest rate for 18 months and 2 years and 3 days tenure.

IDFC First Bank offers 7.9% for 400-500 days tenure, and IndusInd Bank offers the highest FD interest rate of 7.99% for 1 year 5 months tenure.

	Highest FD %	Tenure
PRIVATE SECTOR BANKS
Axis Bank	7.25	15 months to less than 2 years
Bandhan Bank	8.05	1 year
City Union Bank	7.5	333 days
CSB Bank	8	501 days
DBS Bank	7.5	376 days to 540 days
DCB Bank	8.05	19 months to 20 months; Above 26 months to less than 61 months
Federal Bank	7.5	444 days
HDFC Bank	7.4	4 year 7 months (55 months)
ICICI Bank	7.25	15 months to 2 years
IDFC First Bank	7.9	400 days to 500 days
IndusInd Bank	7.99	1 year 5 months to less than 1 year 6 months
Jammu & Kashmir Bank	7	333 days; 1 year to less than 3 years
Karur Vysya Bank	7.6	760 days - Special Deposit
Karnataka Bank	7.5	375 days
Kotak Mahindra Bank	7.4	390 Days to less than 23 months
RBL Bank	8	500 days
SBM Bank India	8.25	Above 18 months to less than 2 years 3 days
South Indian Bank	7.4	1 year 7 days; 18 months
YES Bank	8	18 months

Public Sector banks
Public sector banks generally offer the lowest FD interest rates, ranging between 7.3% and 7.5%. SBI and PNB offer the highest interest rate of 7.25%. Punjab & Sind Bank offers an FD interest rate of 7.45% for a 555-day tenure.

Bank of India, Bank of Baroda, and Union Bank of India provide rates around 7.3% to 7.45% for tenures between 400 and 456 days.

	Highest slab
	%	Tenure
PUBLIC SECTOR BANKS
Bank of Baroda	7.3	400 days - Bob Utsav
Bank of India	7.3	400 days
Bank of Maharashtra	7.45	366 days
Canara Bank	7.4	3 years to less than 5 years
Indian Bank	7.3	400 days - IND SUPER
Indian Overseas Bank	7.3	444 days
Punjab National Bank	7.25	400 days
Punjab & Sind Bank	7.45	555 days
State Bank of India	7.25	444 days - Amrit Vrishti
Union Bank of India	7.3	456 days