FD Rates: Here's a List of Banks Offering Up to 7.4% Interest for 2-Year Tenure
Fixed Deposits (FDs) continue to be a popular investment avenue for secure and steady returns. As of 2025, several banks are offering competitive FD interest rates, with some providing up to 7.4% interest for a 2-year tenure. This blog highlights key banks and their FD rates, helping you make informed decisions for your fixed deposit investments.
Top Banks Offering Up to 7.4% FD Interest on 2-Year Deposits
Axis Bank: Offers around 6.6% interest for 18 months to 2 years for general citizens, with senior citizens getting up to 7.1%.
AU Small Finance Bank: Offers interest rates up to 7.4% for FD tenure between 18 months and 2 years.
ICICI Bank: Offers 6.6% FD interest for general citizens for 2 years, and 7.1% for senior citizens on similar tenure.
IndusInd Bank: Provides FD interest rates up to 7.1% for deposits between 1 year 1 month to 2 years, with senior citizen rates higher at around 7.85% for a similar tenure.
Some small finance banks offer even higher interest, mostly above 8% for specific tenures and senior citizens, but mainstream banks remain competitive around the 7.4% mark for 2-year tenures.
Why Choose Fixed Deposits for 2 Years?
Medium-term investment option balancing liquidity and returns.
Predictable interest income with minimal market risk.
Suitable for conservative investors seeking capital protection.
Potential for compounding if interest is reinvested.
Senior citizens often get higher interest rates.
Frequently Asked Questions (FAQ)
What is the current highest FD interest rate for 2-year tenure?
Mainstream banks in India offer FD interest rates up to around 7.4% for 2-year tenures, with some small finance banks offering higher rates primarily for senior citizens.
Are FD interest rates different for senior citizens?
Yes, senior citizens usually receive a premium of 0.25% to 0.75% over the regular FD interest rates, depending on the bank.
Can I withdraw my FD before maturity?
Premature withdrawal is generally allowed but may attract a penalty and lower interest rates than originally contracted.
Is the interest earned on FD taxable?
Yes, interest earned on fixed deposits is taxable under the Income Tax Act of India according to your tax slab.
How do I choose the best bank FD?
Consider interest rate offered, withdrawal flexibility, bank reputation, tenure options, and whether you are a senior citizen eligible for higher rates.
Published on: July 27, 2025
Published by: PAVAN
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