FD Interest Rates July 2025: Banks are still giving up to 8.8% interest on FDs to senior citizens. Despite the repo rate cut by RBI, FD remains a safe and attractive option for investment. Know which banks are giving the highest interest on FDs.
FD Interest Rates July 2025: In recent months, many banks have cut interest rates on fixed deposits (FDs) several times. This is especially causing trouble to senior citizens, as most of their investments are in FDs. However, senior citizens are still getting attractive interest of up to 8.8% on FDs.
Public Sector Banks
If you want to make a fixed deposit in a government bank, then there too good interest rates are available for senior citizens. These banks are considered reliable in terms of stability and security, although their interest rates are slightly lower than private or small finance banks.
| Bank | Maximum Interest Rate (%) |
| Punjab And Sind Bank | 7.55% |
| bank of india | 7.50% |
Central Bank Of India | 7.50% |
Indian Overseas Bank | 7.45% |
| Indian Bank | 7.40% |
Private Sector Banks
Private sector banks usually offer slightly higher interest rates than public sector banks, and sometimes also offer flexible tenure options. Senior citizens can get up to 7.90% interest here, especially in some options like SBM Bank.
| Bank | Maximum Interest Rate (%) |
| SBM Bank | 8.55% |
| Bandhan Bank | 7.90% |
| CSB Bank | 7.90% |
| DCB Bank | 7.90% |
| RBL Bank | 7.80% |
Small Finance Bank
If you can take a little risk for higher returns, then small finance banks can be a great option. These banks are offering the highest interest rates in the market, especially for senior citizens. Such as Suryoday Bank 8.80% and Utkarsh Bank 8.75%.
| Bank | Maximum Interest Rate (%) |
| Suryoday Small Finance Bank | 8.80% |
| Utkarsh Small Finance Bank | 8.75% |
Shivalik Small Finance Bank | 8.55% |
Slice Small Finance Bank | 8.50% |
| Fincare Small Finance Bank | 8.25% |
RBI reduced the repo rate
So far in 2025, the Reserve Bank of India (RBI) has cut the repo rate by a total of 100 basis points (1%). When RBI reduces the repo rate, that is, gives loans to banks at a cheaper rate, then the banks make the loans cheaper. But at the same time, they also reduce the interest on FD, because now they do not need to raise money from customers at a high interest rate.
Relief to senior citizens in TDS too
In the 2025 budget, senior citizens have been given a big relief in TDS. Now from April 1, 2025, banks will deduct TDS only when the total annual interest received on FD is more than ₹ 1 lakh. Earlier this limit was ₹ 50,000. Also, if the total income of the senior citizen is less than ₹ 12 lakh (from FY26), then they can completely avoid TDS by giving Form 15H to the bank, even if the interest goes above ₹ 1 lakh.
What should investors do?
Despite the cut in repo rate, FD is still a safe and profitable investment option for senior citizens. Banks may revise their interest rates further, so book FD carefully as per the current rates and tenure in July 2025. Do compare the rates of all banks before investing.
Disclaimer: The FD rates of all these banks for senior citizens are till 6 July 2025. These are taken from the official website of the banks. You must confirm with the bank once before making any investment.
