Best Fixed Deposit Interest Rates in India for 2023: Seeking Optimal Places for Maximum Profit on Your Reserves
Top Fixed Deposit Rates in India for 2025: NBFCs and Small Finance Banks Lead the Way
In the Indian banking landscape, fixed deposits (FDs) continue to be a popular investment option due to their safety, guaranteed returns, and capital preservation. For those seeking the highest returns, non-banking financial companies (NBFCs) and small finance banks are proving to be the frontrunners in 2025.
Bajaj Finserv, a leading NBFC, offers the highest FD interest rates in India, reaching up to 8.6% per annum (p.a.). This rate is particularly advantageous for senior citizens, who can enjoy even higher interest rates on specific tenures.
Other NBFCs such as Bajaj Finance Ltd. offer rates close to 7.85% p.a., with monthly returns detailed for a 5-year tenor. Small finance banks like Suryoday and Utkarsh offer FD interest rates as high as 8.40% p.a.
In contrast, traditional large banks like the State Bank of India (SBI) offer up to about 6.6%-7.1% p.a. for FDs. However, Sundaram Finance, an NBFC, offers a competitive 7.20-7.50% p.a. to the general public and 7.70-8.00% p.a. to senior citizens for 1 to 3 years tenure.
AU Small finance bank also stands out with an FD interest rate of up to 8% in a three-year tenure.
One of the key benefits of FDs is the fixed interest rate, which guarantees a return on deposits for the entire term. However, withdrawing money before maturity comes with a penalty or a lower interest rate.
Fixed Deposits are considered safe and secure as they have low risk, are typically insured, and are regulated. They also offer tax benefits and a variety of tenure options to match financial goals.
It's worth noting that LIC Housing Finance requires a minimum investment of Rs.20,000 and offers an interest rate of 7-7.75% for non-cumulative deposits. Many websites and loan apps also provide an FD interest calculator to quickly calculate the interest rate at maturity.
In conclusion, while traditional banks offer competitive FD rates, NBFCs and small finance banks are leading the way in 2025, offering higher interest rates, particularly for senior citizens and specific tenures. As always, it's essential to consider your financial goals and risk tolerance when choosing an investment option.
Investing in fixed deposits (FDs) with non-banking financial companies (NBFCs) and small finance banks, such as Bajaj Finserv, can provide higher returns compared to traditional large banks, reaching up to 8.6% per annum (p.a.) for seniors under specific tenures. Personal-finance management requires careful consideration of various options, including assessing the FD interest rates offered by various NBFCs and small finance banks to achieve the best returns.
