You asked about the interest rate on fixed deposits (FDs) in India. Here’s an up‑to‑date overview: Current FD Interest Rates in India General range: As of mid‑2025, FD rates across banks generally vary between 2.5% to 9.5% per annum, depending on the bank and tenure. The higher end is mostly offered by small finance banks. ([ClearTax][1], [CreditMantri][2]) Small Finance Banks typically offer the most attractive rates. For example: Unity Small Finance Bank: up to 8.6% for regular customers, 9.1% for senior citizens ([ClearTax][1], [Policybazaar][3]) Suryoday Small Finance Bank: up to 8.4–8.6%, and 9.1% for senior citizens ([ClearTax][1], [Policybazaar][3]) DCB Bank recently revised its FD rates offering up to 7.95% for tenures under ₹3 crore ([The Economic Times][4]) Larger public and private sector banks typically offer moderate rates: Generally between 3% to 7.1%, with slightly higher rates (up to \~7.7–8.3%) for senior citizens in some cases ([BankBazaar][5], [CreditMantri][2]) Special FDs & Short-Term Schemes Banks like SBI, Indian Bank, IDBI, and Canara Bank offer special 444‑day FDs, which are mid-term schemes with competitive rates. ([The Economic Times][6]) A few banks still offer FDs with rates exceeding 9%, particularly in special tenures via small finance banks: Suryoday Small Finance Bank: up to 9.10% general, 9.60% senior citizens ([BankBazaar][7]) Unity Small Finance Bank: up to 9.00%, 9.50% for senior citizens ([BankBazaar][7]) Fincare, Equitas, Utkarsh, and others also provide similar high‑interest offerings ([BankBazaar][7], [Policybazaar][3]) For senior citizens, interest rates are typically around 0.5% higher than the standard rate. Some small finance banks even offer up to 9.5% or more. ([CreditMantri][2], [Policybazaar][3], [BankBazaar][7]) Senior Citizen Savings Scheme (SCSS) vs FDs The government-backed SCSS offers a fixed rate of 8.2% p.a., compounded and paid quarterly, for senior citizens. ([The Economic Times][8]) While SCSS provides high security with steady income, small finance bank FDs can outpace it, offering up to 9.10% or more for seniors. However, those involve banking risk and deposit insurance limits. ([The Economic Times][8]) Short-Term FD Rate Trends Due to recent RBI repo rate cuts, some short-term FDs (e.g., with SBI) now offer only up to \~6%, prompting investors to consider debt mutual funds as potentially more lucrative short-term alternatives. ([The Economic Times][9]) Summary Typical FD rates in 2025: ≈ 3%–7% for major banks; up to 8–9% in small finance banks. Special schemes (like 444‑day FDs) may offer better rates. Senior citizens often enjoy an extra 0.5% and can reach rates above 9% with certain small finance banks. SCSS provides a government-guaranteed return of 8.2%, which is solid but slightly lower than the best FD rates. Short-term FD rates have dropped in some cases (e.g., to \~6%), making debt funds a compelling alternative.

Dear Client, In India, Fixed Deposit (FD) rates are a variable that also is a function of what financial institution you are dealing with, the deposit term (tenure) and the age of the depositor. Current FD Interest Rate Overview As of September 2025, Indian banks’ and financial institutions’ are reporting the following rates for deposits which are below ₹2 Crores:. General Citizens: Public Sector and Private Sector banks see interest rates between 5.50% to 7.00% annually. Senior Citizens (60+ years): These parties also see a 0.25% to 0.75% increase in which case their interest rate is between 6.00% and 7.50% per year. Factors Influencing the Rate Type of College: Small Finance Banks (SFBs) usually have the best rates which larger public and private banks do not always match. Small Finance Banks (SFBs): These institutions at times put forth the best rates we see with some offering up to 8.70% for senior citizens and 8.20% for general which is for a limited time. Major Banks (SBI, HDFC, ICICI, etc.): Rates tend to be lower in this area, we see them go as high as 6.60% to 7.10% which is for the best performing periods. General and senior citizens’ see that. Investment Period Rates vary across time Short term Fixed Deposits (for terms of 7 days to 1 year) usually have lower interest rates. Medium term Fixed Deposits (for terms of 1 to 5 years) see the highest rates which is in part due to banks’ special schemes for these terms (for example 444 day or 555 day FDs). Over time (for terms up to 5 to 10 years) we see that rates may drop below the medium term peak. Important Considerations Safety: Deposits in all Scheduled Commercial Banks as well as Small Finance Banks are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 Lakh per depositor. Exact Rates: Banks update their rates often so it is recommended that you check the latest rate sheet which we post on our website for the exact rate which applies to your deposit amount and term. I hope this answer helps you resolve the queries. If there is any concern still prevalent, then please contact our law firms. Thank you!