FD Rate Alert: Best Bank Fixed Deposit Rates in June 2025

Fixed Deposits (FDs) have long been a popular choice among conservative investors in India. With the Reserve Bank of India (RBI) adjusting repo rates based on economic trends, FD rates are always under review. In June 2025, several banks have revised their interest rates, making it a good time to lock in your investments. Whether you're a senior citizen, a salaried individual, or a business owner, this guide will help you choose the best FD based on current interest rates, tenure, and benefits.

What Makes FDs a Safe Investment in 2025?

FDs are known for their capital protection and predictable returns. In a volatile market environment, especially after recent global economic shifts and policy changes, FDs provide peace of mind. Here's why FDs remain a safe bet in 2025:

• Guaranteed Returns: Unlike mutual funds or stocks, FDs offer fixed interest rates.
• DICGC Insurance: Deposits up to ₹5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation.
• Flexible Tenure: Investors can choose tenures ranging from 7 days to 10 years.
• Tax-saving Options: 5-year tax-saving FDs qualify for deductions under Section 80C.

Top FD Interest Rates by Banks (June 2025)

Here is a comparison of FD rates offered by leading banks in India for deposits below ₹2 crore:

Bank Name	Regular FD Rate (1-2 yrs)	Senior Citizen Rate	Max Tenure
SBI (State Bank of India)	6.80%	7.30%	10 years
HDFC Bank	7.00%	7.50%	10 years
ICICI Bank	7.10%	7.60%	10 years
Axis Bank	7.20%	7.75%	10 years
IndusInd Bank	7.75%	8.25%	10 years
Yes Bank	7.85%	8.35%	10 years
Bandhan Bank	8.00%	8.50%	10 years
Punjab National Bank	6.90%	7.40%	10 years

Note: Interest rates may vary slightly depending on the tenure and deposit amount. Always confirm with the official bank website before investing.

Best FD Rates for Senior Citizens (June 2025)

Senior citizens enjoy higher interest rates, often 0.50% more than regular depositors. For example:

• Bandhan Bank: Up to 8.50% for select tenures.
• IndusInd Bank: 8.25% for deposits of 1-2 years.
• Axis Bank: 7.75% for 2 years.

This makes FDs an attractive retirement planning tool for pensioners or elderly investors.

Small Finance Banks Offering High FD Returns

In addition to major banks, Small Finance Banks (SFBs) are offering highly competitive FD rates to attract depositors:

• Utkarsh SFB: Up to 8.75% (senior citizens)
• Equitas SFB: Around 8.50%
• AU Small Finance Bank: Up to 8.00%

However, investors should consider the bank’s credit rating and financial stability before investing in SFBs, even if deposits are insured.

Taxation on FD Interest

Interest earned on FDs is fully taxable under your income slab. If the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, TDS (Tax Deducted at Source) is applicable. Use Form 15G/15H to avoid TDS if your income is below the taxable limit.

Tips for Maximizing FD Returns

• Choose cumulative FDs if you don’t need regular income, as interest compounds and yields better returns.
• Split your deposits across tenures and banks to get liquidity and higher returns.
• Compare before investing: Always check updated rates across banks online.
• Consider SFBs carefully: If you're investing in small finance banks, invest only a portion of your funds.

Conclusion

With FD rates trending upwards in mid-2025, investors have a good opportunity to lock in higher returns before any potential rate cuts. Whether you're building a retirement corpus, parking emergency funds, or saving for short-term goals, FDs remain a reliable option. Always compare rates, tenures, and bank stability before investing. Keep an eye on RBI announcements and review your investment portfolio regularly to make the most of your savings.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making any investment decision.