When it comes to parking money safely, fixed deposits continue to be one of the most trusted investment options for Indian savers. They offer guaranteed returns, low risk, and the comfort of knowing your money is secure with a bank.

Most lenders usually announce similar interest rates on one-year deposits, making it seem as if there isn’t much of a difference in where you invest. However, a closer look at the latest rates reveals small but meaningful variations. These may appear minor at first glance, yet over time they can make a visible difference in earnings, particularly for those putting away larger sums or for senior citizens, who often enjoy slightly higher rates and, therefore, greater benefits.

WHICH BANKS ARE PAYING MORE

According to the latest data from bank websites, some of the major banks are currently offering competitive returns on one-year fixed deposits.

HDFC Bank is currently offering 6.25% interest on one-year fixed deposits for regular customers and 6.75% for senior citizens, effective from June 25, 2025. ICICI Bank and Kotak Mahindra Bank provide the same rates.

The Federal Bank gives slightly higher returns, at 6.40% and 6.90%, to general and senior citizens respectively.

The State Bank of India (SBI), India’s largest bank, also offers 6.25% to regular customers and 6.75% to senior citizens, since July 15, while Union Bank of India matches the Federal Bank’s rates, effective from August 20.

Simply put, for one-year fixed deposits, even a small variation in rates can add up to meaningful gains over time. Senior citizens stand to benefit more, making FDs a dependable choice for those who prefer safety.

Hence, for those looking at one-year fixed deposits, the difference between the highest and lowest rates is just 0.15 per cent, but that small gap can still give savers extra earnings. Senior citizens, in particular, benefit from higher returns, making FDs a steady option for risk-averse investors.

– Ends