7 Banks that are offering best interest rates on 1-year deposits in FD after RBI cuts Repo Rate

Despite the RBI's recent repo rate cut, several top banks continue to offer attractive interest rates on 1-year FDs, making them a wise, low-risk short-term investment in 2025.

Authored by: | Updated 4/15/2025, 1:58:32 PM
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In 2025, major banks in India are offering competitive interest rates on 1-year FDs (fixed deposits). Constant market fluctuations drive the public toward safer, risk-free, guaranteed investment options like FDs. However, it is essential to note that on April 9, 2025, "the Reserve Bank of India (RBI) cut the repo rate by 25 basis points," enabling banks to reduce their FD interest rates.

FDs have always been an excellent option for long-term investment, and they are just as beneficial for short-term investments now; here’s the complete list of banks and their interest rates.

Banks offering high rates of interest on 1-year FDs

  1. Federal Bank offers interest rates of 7.5 percent for senior citizens and 7 percent for the general public on 1-year FDs, effective January 10, 2025.
  2. Kotak Mahindra Bank offers 7.60 percent for senior citizens and 7.10 percent for the general public on 1-year FDs, effective April 9, 2025.
  3. The State Bank of India (SBI) is the largest lender in the country, offering an interest rate of 7.20 to senior citizens and 6.7 percent to the general public. These interest rates on 1-year FDs came into force on April 15, 2025.
  4. ICICI Bank, one of the major private banks in India, is offering a 7.2 percent interest to senior citizens and 6.7 percent interest to the general public on 1-year FDs.
  5. HDFC Bank is the largest private bank in India. Currently, the bank offers 7.10 percent interest to its senior citizens and 6.60 percent to the general public.
  6. Bank of Baroda offers 7.35 percent to its senior citizens and 6.85 percent to the general public on their 1-year FDs.
  7. Union Bank of India offers 7.3 percent to its senior citizens and 6.8 percent to its general users. The interest rates came into effect on Jan 1, 2025.

While the difference in interest rates may not be significant, an extra 0.5 percent of small interest can still give you a comparatively better return.

Disclaimer: True Scoop is a news website and it has only presented information about FDs in banks in India. Before investigating in any FD, True Scoop advises you to consult your financial expert and bank officials. 

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