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.Budget with ET
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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.
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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 |
This story originally appeared on: India Times - Author:Faqs of Insurances
