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  5. Highest Fixed Deposit interest rates to drop? Check 14 banks offering 8-9% on FD in February 2025

Personal Finance News

Highest Fixed Deposit interest rates to drop? Check 14 banks offering 8-9% on FD in February 2025

Upstox
By Upstox News Desk

3 min read | Updated on February 11, 2025, 18:13 IST

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SUMMARY

The lower Fixed Deposit rates, if announced by banks, will apply only to new FD accounts. However, banks may take some time to revise their FD rates. Until that happens, those planning to book an FD can take advantage of the higher FD rates currently being offered by banks.

fixed deposit interest rate news

The highest FD rate offered to general depositors is 9% by at least two banks. | Image source: Shutterstock

The Reserve Bank of India (RBI) decided to reduce the repo rate by 25 basis points to 6.25% last week .

The RBI's rate cut decision is likely to benefit borrowers but it may lead to a reduction in the fixed deposit interest rates.

However, there is nothing to worry for existing FD accountholders. Any future drop in deposit interest rates will not affect already existing FD accounts, as they will continue to earn the interest rate at which they were booked.

The lower FD rates, if announced by banks, will apply only to new FD accounts. But banks may take some time to revise their FD rates. Until that happens, those planning to book an FD can take advantage of the higher FD rates currently being offered by banks.

As of February 11, 2025, 14 banks are offering more than 8% interest on fixed deposits of various tenures to general citizens.

The highest FD rate offered to general depositors is 9% by at least two banks. The table below shows the highest FD rates offered by these banks:

Banks offering over 8% interest on Fixed Deposit*

BankHighest FD rate (% p.a.) for general citizensTenure
Unity Small Finance Bank91001 days
North East Small Finance Bank918 months 1 day to 36 months
Shivalik Small Finance Bank8.812 months 1 day to less than 18 months
Suryoday Small Finance Bank8.65 years
Utkarsh Small Finance Bank8.52 years to 3 years; 1500 days
ESAF Small Finance Bank8.38888 days
Jana Small Finance Bank8.25365 days to 3 years
Ujjivan Small Finance Bank8.251 year
Equitas Small Finance Bank8.25888 days
SBM Bank8.25Above 18 months to less than 2 years 3 days
AU Small Finance Bank8.118 months
DCB Bank8.0519 months to 20 months; above 26 months to less than 61 months
Bandhan Bank8.051 year
RBL Bank8500 days
*Source: Respective bank websites as on February 11, 2025
Please note that some of the banks in the above table are small finance banks. While these banks are covered under the ₹5 lakh deposit insurance guarantee offered by the RBI, investing large amounts in the FDs offered by such banks may be risky. You can check the list of banks offering low-risk fixed deposits here. .
Disclaimer: The above list of bank FDs are for general informational purposes only and must not be construed as recommendations by Upstox.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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