Highest FD interest rates 2025: These 6 banks lead for long-tenure fixed deposits

Before opening a fixed deposit (FD) account, it is advisable to compare the interest rates offered by different banks for the same duration.

Although most banks offer almost similar interest on their fixed deposits but a tiny variation of 50 basis points may bring a significant difference to the overall return over a long period of time. For example, on a fixed deposit of ₹10 lakh, an extra 50 basis points of interest can lead to a higher income to the tune of ₹25,000 over a 5-year period.

Notably, small finance banks and non-banking financial corporations (NBFCs) offer slightly higher interest rates.

Without much ado, we compare the interest rates offered by six different banks on their five-year term deposits. These banks offer high rates of interest on their 5-year fixed deposits (FDs).

6 banks offering high interest rates on 5-year FDs

HDFC Bank: The largest private bank offers 6.4 percent to regular citizens and 6.9 percent to senior citizens over a five-year period. These rates came into force on 15 June 2025.

ICICI Bank: This private sector bank offers 6.6 percent and 7.10 percent to regular and senior citizens on their five-year deposits.

Kotak mahindra bank: This bank offers 6.25 percent and 6.75 percent to regular and senior citizens on their five-year fixed deposits. These rates came into force on 18 June 2025.

Federal Bank: This private bank offers 6.5 percent interest per annum on fixed deposits on five-year deposits to regular depositors and 7 percent to senior citizens.

(Source: Bank websites; Interest on 5-year term deposits only)

State Bank of India (SBI): The largest lender of India offers 6.05 percent interest to regular depositors and 7.05 percent to senior citizens (including additional premium of 50 bps under the”SBI We-care” deposit scheme).

Union Bank of India: This public lender offers 6.4 percent to regular citizens and 6.9 percent to senior citizens on their five year five-year fixed deposits.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.