The moment is right for savers to investigate the fixed deposit interest rates that different Indian banks are offering as 2025 gets underway. Despite the possibility of a postponed interest rate decrease cycle, analysts predict that the Reserve Bank of India (RBI) will lower interest rates in 2025.Customers have a lot of options because small financing banks, private sector banks, public sector banks, and international banks all have significantly different rates.

Small Finance Banks

Small finance banks are currently leading the way in competitive interest rates. Here's a look at the top offerings, as curated by Paisabazaar.

1. NorthEast Small Finance Bank: 9.00% for tenures of 546 days to 1111 days

2. Unity Small Finance Bank: 9.00% for 1001 days

3. Jana Small Finance Bank: 8.25% for tenures of 1 year to 3 years

4. Equitas Small Finance Bank: 8.25% for 888 days

5. Suryoday Small Finance Bank: 8.60% for tenures above 2 years to 3 years

6. AU Small Finance Bank: 8.00% for 18 months

7. Ujjivan Small Finance Bank: 8.25% for 12 months

8. Utkarsh Small Finance Bank: 8.50% for tenures of 2 years to 3 years; 1500 days

9. ESAF Small Finance Bank: 8.25% for 2 years to less than 3 years

Private Sector Banks:

In the private sector, several banks offer attractive rates:

1. Bandhan Bank: 8.05% for a 1-year tenure

2. DCB Bank: 8.05% for tenures of 19 to 20 months

3. RBL Bank: 8.00% for 500 days

4. IDFC First Bank: 7.90% for 400 to 500 days

5. IndusInd Bank: 7.99% for 1 year 5 months to less than 1 year 6 months

6. HDFC Bank: 7.40% for 55 months

7. ICICI Bank: 7.25% for tenures of 15 months to 2 years

Public Sector Banks

Public sector banks are known for their stability and reliability. Key offerings include:

1. Bank of Maharashtra: 7.35% for 333 days

2. Bank of India: 7.30% for 400 days

3. Bank of Baroda: 7.30% for 400 days

4. Canara Bank: 7.40% for 3 years to less than 5 years

5. Indian Bank: 7.30% for 400 days - IND SUPER

6. State Bank of India: 7.25% for 444 days - Amrit Vrishti

7. Punjab National Bank: 7.25% for 400 days

Foreign Banks

Foreign banks also offer competitive rates, but generally lower than their Indian counterparts:

1. Deutsche Bank: 8.00% for tenures above 1 year to 3 years

2. HSBC Bank: 7.50% for 601 to 699 days

3. Standard Chartered Bank: 7.50% for 1 year to 375 days

Making an informed choice can greatly improve your savings plan, regardless of whether you go with a traditional bank for security or a tiny finance bank for higher returns. Examining the investment's tenure is another recommendation made to investors. Although longer-term deposits have lower liquidity, they could have more alluring rates. To optimize returns while preserving some flexibility, a well-rounded strategy could combine short- and long-term investments.