Fixed deposit interest rates: Which private bank gives the highest FD returns? | Mint

Fixed deposits (FDs) continue to be a lucrative option and a top choice for risk averse investors in the country. Several private sector banks are providing competitive interest rates helping individuals lock in safe, risk free fixed returns without market exposure.

What are private sector bank fixed deposits?

Private sector bank fixed deposits are simply savings plans where you park money with private banks for a fixed period and earn guaranteed interest. Such savings plans provide safe and stable returns. 

Highest FD interest rates by private banks 2025

Check out the leading private sector banks offering the best FD rates this year:

Note: Rates as updated on June 20, 2025

Are FDs in private sector banks risky?

It is important to acknowledge the fact that fixed deposits in private sector banks are considered generally safe. Especially in well established financial institutions regulated by the Reserve Bank of India.

Still, they may carry slightly higher risk than public sector banks due to lower government backing. In such a situation it is prudent to take well considered decision for financial planning. 

Should you opt for private sector bank FDs over traditional banks?

Going for a private sector bank fixed deposit can provide higher interest rates compared to traditional public sector banks. Still, aspirational investors should carefully understand the bank’s financial health and credit rating before considering investing. As there should always be a balance between returns and safety in the long run.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation. Interest rates are subject to periodic revision by banks. Investors are advised to assess their risk appetite, refer to the official websites of banks, conduct due diligence on the institution, and consult a financial advisor before making any investment decisions.