These banks are offering up to 7.2% interest on FDs
What's the story
As the Reserve Bank of India (RBI) continues to cut repo rates, many banks are following suit by lowering their interest rates on fixed deposits (FDs). However, some banks are still offering attractive interest rates. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Federal Bank, State Bank of India (SBI), and Bank of Baroda are among those offering competitive returns on deposits for specific tenures. Let's take a look.
Bank performance
HDFC Bank and ICICI Bank
HDFC Bank is offering an interest rate of 6.6% for FDs with a tenure of 18-21 months. For senior citizens, the bank offers an even higher rate of 7.1%. These rates were updated on June 25, 2025. ICICI Bank also provides a similar interest rate for FDs with a tenure between two to 10 years, and senior citizens get the same benefit as well.
Interest offerings
Kotak Mahindra Bank and Federal Bank
Kotak Mahindra Bank is offering an interest rate of 6.6% on FDs with a tenure of 444 days. Senior citizens get an additional 50 basis points on their deposits. These rates were updated on June 18, 2025. Federal Bank is providing a competitive interest rate of 6.7% for FDs with a tenure of 444 days, and senior citizens receive an additional 50 basis points, resulting in a total interest rate of 7.2%.
Government sector
SBI and Bank of Baroda
The State Bank of India (SBI) is offering an interest rate of 6.45% for FDs with a tenure of two to three years. Senior citizens get an additional 50 basis points on their deposits. These rates were updated on July 15, 2025. Bank of Baroda is also giving an interest rate of 6.6% for FDs with a tenure of 444 days, and senior citizens receive an additional 50 basis points, resulting in a total interest rate of 7.1%.