Fixed deposits (FDs) remain one of India’s most preferred investment options for secure returns. With interest rates seeing fluctuations in 2025 due to changing RBI policies and inflation trends, it’s crucial to know which bank is offering the best deal for your hard-earned money.
Here’s a comparison of FD interest rates in August 2025 from the country’s top lenders.
Latest FD Rates – August 2025
| Bank | FD Tenure | General Public Rate (p.a.) | Senior Citizen Rate (p.a.) |
|---|---|---|---|
| SBI | 1 – 2 years | 6.80% | 7.30% |
| HDFC Bank | 1 – 2 years | 7.00% | 7.50% |
| ICICI Bank | 1 – 2 years | 6.90% | 7.40% |
| Axis Bank | 1 – 2 years | 6.85% | 7.35% |
| Kotak Mahindra Bank | 1 – 2 years | 7.10% | 7.60% |
| Bank of Baroda | 1 – 2 years | 6.75% | 7.25% |
(Rates are indicative and may vary by deposit amount and branch location)
Key Observations
Best for General Public: Kotak Mahindra Bank at 7.10% p.a.
Best for Senior Citizens: Kotak Mahindra Bank at 7.60% p.a., followed closely by HDFC Bank at 7.50%.
Public Sector Strength: SBI offers competitive rates but slightly lower than top private banks.
How to Choose the Right FD
Tenure Flexibility: Pick a duration that matches your financial goal.
Liquidity Needs: Check premature withdrawal rules.
Laddering Strategy: Split deposits into different maturities to manage risk and liquidity.
Tax Considerations: Remember that FD interest is taxable as per your income slab.
Tips for Maximizing FD Returns
Opt for cumulative FDs to benefit from compounding.
Compare bank vs NBFC rates – NBFCs sometimes offer higher returns.
Consider FDs with quarterly payouts if you want regular income.
Conclusion
August 2025 brings steady FD rates with slight upward movement in select private banks. Whether you value the security of a PSU bank like SBI or want higher yields from private lenders like Kotak and HDFC, the choice should align with your financial goals.
FAQs
Q1: Which bank has the highest FD rate in August 2025?
Kotak Mahindra Bank offers 7.10% for the general public and 7.60% for senior citizens.
Q2: Are FD rates expected to rise further in 2025?
With RBI maintaining a balanced monetary stance, significant hikes are unlikely unless inflation spikes.
Q3: Is it safe to invest in private bank FDs?
Yes, as long as you choose RBI-regulated banks with good credit ratings.
Q4: Can I break an FD before maturity?
Yes, but you may incur a penalty on the interest earned.
Published on : 8th August
Published by : SMITA
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