Rates of interest also differ based on tenors of deposits. For instance, long tenor deposits generally give a higher return than low tenor ones.
Meanwhile, the highest interest offered by a bank on its fixed deposits (FDs) is not necessarily given on the longest tenor. In other words, the bank may give a higher return on its 3-year FD instead of a 4-year deposit. Let us try to understand this a bit more.
Here we list the highest interest rates given by banks – private and govt-run – across different tenors.
Highest fixed deposit interest rates
I. HDFC Bank: This private bank gives the highest interest of 6.6% on deposits with tenor between 18 to 21 months to regular citizens and 7.1% to senior citizens. These rates came into force on 25 June 2025.
II. ICICI Bank: This private bank offers 6.6% interest to regular citizens on deposits of 2-year tenor and 7.1% to senior citizens.
III. Kotak Mahindra Bank: This private sector bank offers 6.6% interest to regular citizens on fixed deposits of tenor between 390 days and 23 months, and 7.1% interest to senior citizens. These rates came into force on 20 August.
IV. Federal Bank: This private sector bank offers 6.7% interest to regular citizens on FDs for 999 days and 7.2% to senior citizens. These rates came into effect on 18 August.
(Source: Bank websites; The table mentions the highest rates given on specific tenors only)
State lenders
V. SBI: The State Bank of India offers 6.45% interest to regular citizens on FDs with a tenor of 2-3 years and 6.95% to senior citizens.
VI. PNB: This state lender offers 6.6% interest on FD with 390 day tenor to regular citizens and 7.10% to senior citizens. These rates came into force on 1 September.
VII. Union Bank of India: This state lender offers 6.6% and 7.1% interest to regular and senior citizens, respectively, on fixed deposits of 3-year tenure, per the rates which came into effect on 20 August 2025.
VIII. Canara Bank: This state lender offers 6.5% and 7% to regular and senior citizens, respectively, on term deposits of 444-day tenor, as per the rates which came into effect on 7 August.
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