9% interest: Your guide to the best fixed deposit rates in January 2025

As 2025 begins, time is ripe for savers to explore fixed deposit interest rates offered by various banks across India. The much-anticipated interest rate cut cycle may be delayed, but experts believe the Reserve Bank of India (RBI) will reduce rates in 2025.

 

With substantial differences in rates among small finance banks, private sector banks, public sector banks, and foreign banks, consumers have a wide array of options to choose from.

 

Small Finance Banks: 

Small finance banks are currently leading the way in competitive interest rates. Here's a look at the top offerings, as curated by Paisabazaar.

 

• NorthEast Small Finance Bank: 9.00% for tenures of 546 days to 1111 days
• Unity Small Finance Bank: 9.00% for 1001 days
• Jana Small Finance Bank: 8.25% for tenures of 1 year to 3 years
• Equitas Small Finance Bank: 8.25% for 888 days
• Suryoday Small Finance Bank: 8.60% for tenures above 2 years to 3 years
• AU Small Finance Bank: 8.00% for 18 months
• Ujjivan Small Finance Bank: 8.25% for 12 months
• Utkarsh Small Finance Bank: 8.50% for tenures of 2 years to 3 years; 1500 days
• ESAF Small Finance Bank: 8.25% for 2 years to less than 3 years

Private Sector Banks: 

 

In the private sector, several banks offer attractive rates:

 

• Bandhan Bank: 8.05% for a 1-year tenure
• DCB Bank: 8.05% for tenures of 19 to 20 months
• RBL Bank: 8.00% for 500 days
• IDFC First Bank: 7.90% for 400 to 500 days
• IndusInd Bank: 7.99% for 1 year 5 months to less than 1 year 6 months
• HDFC Bank: 7.40% for 55 months
• ICICI Bank: 7.25% for tenures of 15 months to 2 years

Public Sector Banks:

Public sector banks are known for their stability and reliability. Key offerings include:

 

• Bank of Maharashtra: 7.35% for 333 days
• Bank of India: 7.30% for 400 days
• Bank of Baroda: 7.30% for 400 days
• Canara Bank: 7.40% for 3 years to less than 5 years
• Indian Bank: 7.30% for 400 days - IND SUPER
• State Bank of India: 7.25% for 444 days - Amrit Vrishti
• Punjab National Bank: 7.25% for 400 days

Foreign Banks:

Foreign banks also offer competitive rates, but generally lower than their Indian counterparts:

 

• Deutsche Bank: 8.00% for tenures above 1 year to 3 years
• HSBC Bank: 7.50% for 601 to 699 days
• Standard Chartered Bank: 7.50% for 1 year to 375 days

 

Whether you choose a small finance bank for higher returns or opt for a traditional bank for security, making an informed decision can significantly enhance your savings strategy. Investors are also encouraged to review the tenure of their investments. Longer-term deposits may offer more attractive rates, but they come with the caveat of reduced liquidity. A balanced approach could involve a mix of short-term and long-term investments to maximize returns while maintaining some flexibility.