**FD Rates Drop as Indian Banks Adjust to Global Trends**
*By Akash Pandey | Sep 20, 2025, 06:24 PM*
Several banks in India have recently reduced their fixed deposit (FD) interest rates across various tenures. This trend follows domestic and global rate cuts, including the US Federal Reserve’s recent 25 basis points (bps) reduction, bringing rates to 4.00%-4.25%. This move may also encourage further easing by the Reserve Bank of India (RBI).
Currently, most major banks offer FD rates ranging between 6.45% and 6.7% per annum for regular depositors. Senior citizens generally receive an additional 50 bps on these rates.
### Highest FD Rates Offered by Banks
– **Bandhan Bank** leads the pack by offering the highest FD rate of 7.2% for regular depositors on tenures between two and three years.
– **HDFC Bank** and **Kotak Mahindra Bank** provide similar rates for specific tenures—18 to 21 months for HDFC and 391 days to 23 months for Kotak Mahindra.
### Other Notable Banking Updates
– **ICICI Bank** offers 6.6% for regular depositors and 7.1% for senior citizens on tenures of two years and above.
– **Federal Bank** provides rates of 6.7% for regular depositors and 7.2% for senior citizens, valid up to 999 days.
– **DCB Bank** currently offers 7.2% for a 27-month tenure.
### Public Sector Bank Offerings
Among public sector banks, the **State Bank of India (SBI)** provides 6.45% for regular depositors and 6.95% for senior citizens for two to three years. Other public sector banks like **Punjab National Bank (PNB)**, **Union Bank of India**, **Indian Overseas Bank**, **Indian Bank**, and **Central Bank of India** also offer competitive FD rates.
– **PNB** offers 6.6% for regular depositors and 7.1% for senior citizens for a tenure of 390 days.
– **Union Bank of India** offers similar rates for tenures extending up to three years.
### Small Finance Banks Leading on Interest Rates
Small finance banks continue to offer some of the highest FD rates, often reaching 8% or more.
– **Jana Small Finance Bank** offers the highest FD rate of 8% for a 5-year tenure.
– **ESAF Small Finance Bank** provides 7.6% for 444 days.
– **Slice Small Finance Bank** offers 7.75% for tenures between 18 months 1 day and 18 months 2 days.
### Other Interest Rate Highlights
– **Jammu and Kashmir Bank** offers 7.1% for a tenure of 888 days.
– **SBM Bank India** provides the highest publicized FD rate of 7.5% for five years.
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As Indian banks realign their FD rates with global trends, depositors should monitor these changes closely to optimize their investment returns. The evolving interest rate scenario also indicates the possibility of further adjustments by the RBI in the near future.
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