FD interest rates: If you are looking to lock your savings in fixed deposits (FDs), it is recommended to compare the interest rates offered by different banks.
Although most banks offer almost similar interest rates, it is recommended to choose the one that offers the highest interest because a tiny difference of 50 basis points can also lead to a significant difference in the overall returns over a long period of time.
For instance, when you lock ₹10 lakh fixed deposit in a 5-year deposit that gives you 6.50 percent interest in one year instead of 6 percent offered by another bank, you stand to earn an extra ₹5,000 in a year. On an FD of 3-year tenure, you can rake in an extra ₹15,000.
Here, we list out the interest rates offered by 7 popular banks on their 1-year fixed deposits.
FD interest rates on 1-year deposits
I. HDFC Bank: The largest private sector bank offers 6.25 percent interest on a 1-year fixed deposit to regular citizens and 6.75 percent interest to senior citizens. These rates came into force on 25 June 2025.
II. ICICI Bank: ICICI Bank offers 6.25 percent interest to regular citizens and 6.75 percent to senior citizens on an FD of tenure between 1 year to 18 months.
Meanwhile, this private sector bank offers the highest interest on an FD of 2-year tenure or longer.
III. Kotak Mahindra Bank: Kotak Mahindra Bank offers 6.25 percent on a 1-year tenure to regular citizens and 6.75 percent to senior citizens. These rates came into force on 20 August 2025.
IV. Axis Bank: This lender also offers 6.25 percent and 6.75 percent interest on 1-year FD to regular and senior citizens, respectively.
V. Federal Bank: This private sector bank offers 6.40 percent interest on 1-year FD to regular customers and 6.90 percent to senior citizens with effect from 18 August 2025.
State lenders
VI. State Bank of India (SBI): Starting 15 July, State Bank of India has been offering 6.25 percent interest on 1-year fixed deposits to regular citizens and 6.75 percent to senior citizens.
VII. Union Bank of India: This public sector lender offers 6.40 percent interest to regular citizens and 6.90 percent to senior citizens. These rates came into force on 20 August.
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