The reason is that Fixed Deposits (FDs) will continue to be among the preferred investments by risk-averse investors in 2025. These are secure investments, which have predetermined returns over to be realized within a chosen period of time without change in the market hence appropriate in good financial planning.
Recent Rate Changes
By August 2025, banks had changed FD rates in response to an April 25-basis-point repo rate cut by the RBI. The general citizen rates are 3-7.15, the senior citizen rates go up to 7.65 in tenures of 7 days to 10 years.
Top Bank Offerings
HDFC bank is offering 6.6% on 1 year FDs and 7.55% on 15 21 month FDs to the senior. ICICI Bank is providing 6.7 percent on one-year terms and 7.2 percent on senior terms. Under the SBI Wecare scheme, the maximum rate offered is 7 and 7.5 per cent on general citizens and seniors respectively.
Special Senior Citizen Rates
The aged (60 and above) receive an extra 0.5%-0.75% on the FD rates. Indian Bank is additionally granting super seniors (80) an additional 0.25, up to 7.65 on 5-10 year deposits to guarantee the retirees better returns.
Tax Implications
FD interest is subject to taxation as income of other sources. According to the Income Tax Act, TDS will be calculated when interest is more than 40,000 (50,000 in the case of seniors) per year. Section 80C of the FDI Act 1996, provides a deduction of up to 1.5 lakh on tax saving FDs with a lock-in of 5 years.
Flexible Tenure Options
FDs are available in 7-10 year terms. Short-term FDs (7-180 days): It suits the liquidity needs; long-term FDs (1-10 years): It is the most profitable. Regular income can be paid out on a monthly or quarterly basis at banks such as the Axis bank.
FD Rates Comparison (August 2025)
| Bank | General Rate (% p.a.) | Senior Citizen Rate (% p.a.) | Tenure |
|---|---|---|---|
| SBI | 3.00–7.00 | 4.00–7.50 | 7 days–10 years |
| HDFC Bank | 3.00–7.05 | 3.50–7.55 | 7 days–10 years |
| ICICI Bank | 2.75–6.70 | 3.25–7.20 | 7 days–10 years |
| Indian Bank | 3.00–7.15 | 3.50–7.65 | 7 days–10 years |
Maximize Your Savings
Make a comparison of FD rates on bank websites such as sbi.co.in or icicibank.com and then invest. Estimate returns using FD calculators and make sensible decisions on tenures to find the appropriate trade-off between liquidity and growth.
Also read: LIC Smart Pension Plan 2025: Secure Your Retirement with Guaranteed Income