- Higher interest (up to 7.60%)
- Tenure flexibility
- Special senior citizen plans
However, NBFC FDs are not insured like bank deposits. So, only opt for NBFCs with CRISIL/ICRA ratings of FAAA or equivalent.
Senior Citizens and the Best Fixed Deposit in India
Senior citizens enjoy exclusive FD benefits. Many banks now offer 0.50% higher interest for them, along with flexible tenures and interest payout options. Notable schemes include:
- SBI Annuity Deposit Scheme
- HDFC Senior Citizen Care FD
- ICICI Golden Years FD
These plans allow monthly, quarterly, or annual interest payout, supporting retirees’ income flow. In 2025, these senior-focused FDs have become more inclusive with special advisory services, doorstep support, and better digital features.
Tax Implications for FD Investors in India
Understanding tax before investing is crucial. Here are the key points:
- TDS applies if interest exceeds Rs. 40,000/year (Rs. 50,000 for seniors)
- Use Form 15G/15H to avoid TDS if income is below taxable limits
- 5-year tax-saving FDs provide deduction up to Rs. 1.5 lakh under Section 80C
Additionally, taxpayers should be aware of clubbing provisions for joint accounts and interest declarations in ITR forms to stay compliant.
How to Choose the Best Fixed Deposit in India
To pick the best FD option, follow these tips:
- Compare interest rates across banks and NBFCs
- Choose tenure as per your financial goal
- Look for premature withdrawal conditions
- Check safety ratings for NBFCs (CRISIL, ICRA)
- Evaluate online vs offline application processes
Use FD calculators provided by banks like SBI, HDFC, and ICICI to evaluate maturity returns before locking in your funds.
Comparison Table: Best Fixed Deposit Interest Rates (2025)
| Institution | Regular Rate | Senior Citizen | Tenure Range |
| SBI | 6.10% | 6.90% | 1 – 10 years |
| HDFC | 6.25% | 7.00% | 6 mo – 10 yrs |
| ICICI | 6.10% | 6.90% | 1 – 10 years |
| Bajaj Finance | 7.35% | 7.60% | 1 – 5 years |
| Mahindra Finance | 7.25% | 7.50% | 1 – 5 years |
Frequently Asked Questions (FAQ)
Q1. Which bank has the best fixed deposit in India in 2025?
SBI, HDFC, and ICICI offer the most stable FD options with decent rates and strong credibility.
Q2. Are corporate FDs safe?
Corporate or NBFC FDs offer higher rates but come with higher risk. Choose highly-rated issuers only.
Q3. Can I withdraw FD before maturity?
Yes, but premature withdrawal may lead to penalty and reduced interest rate.
Q4. Which FD is tax-free?
5-year tax-saving FDs under Section 80C are exempt up to Rs. 1.5 lakh (lock-in applies).
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Conclusion
The best fixed deposit in India is not the same for everyone. Your age, risk appetite, and financial goal should guide your choice. While banks ensure safety, NBFCs attract with high returns. Evaluate wisely and invest smartly in 2025.
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