In India, small finance banks have gained considerable attention due to their higher fixed deposit (FD) interest rates, often surpassing those offered by traditional commercial banks.
If you are looking for best FD interest rates in 2025, small finance banks are an excellent option for maximizing your returns.
Fixed deposits are a safe, low-risk investment vehicle that allows you to earn fixed returns over a predetermined tenure.
In the current financial year, small finance banks have been offering interest rates of up to 9.50%, making them a lucrative option for both general citizens and senior citizens.
This article will walk you through the top small finance banks with the highest FD interest rates in India in 2025, offering returns that are hard to beat.
Whether you're looking to invest for the short-term or long-term, this guide will help you select the best fixed deposit schemes available in the market.
Top 10 Small Finance Banks with the Highest FD Interest Rates in 2025
| Bank Name |
FD Interest Rate (General Citizens) |
FD Interest Rate (Senior Citizens) |
Highest Return |
| Equitas Small Finance Bank |
3.5% to 8.25% |
4% to 9% |
9% |
| Utkarsh Small Finance Bank |
4% to 8.5% |
4.6% to 9.10% |
9.10% |
| Unity Small Finance Bank |
4.5% to 9% |
4.5% to 9.50% |
9.50% |
| Ujjivan Small Finance Bank |
3.75% to 8.25% |
4.25% to 8.75% |
8.75% |
| North East Small Finance Bank |
3.5% to 9% |
4% to 9% |
9% |
| Suryoday Small Finance Bank |
4% to 8.60% |
4.5% to 9.10% |
9.10% |
| AU Small Finance Bank |
3.75% to 8% |
4.25% to 8.50% |
8.50% |
| Fincare Small Finance Bank |
3.75% to 8.50% |
4.25% to 9% |
9% |
| Jana Small Finance Bank |
4% to 8.25% |
4.5% to 8.75% |
8.75% |
| IDFC First Small Finance Bank |
4% to 8.50% |
4.5% to 9% |
9% |
Factors to Consider When Choosing the Best Small Finance Bank for Fixed Deposits
Before we dive into the top 10 small finance banks offering the **highest FD interest rates**, let’s review some important factors you need to keep in mind when choosing a bank for your fixed deposit:
1. Interest Rates: The Key to Maximizing Your Returns
The **interest rate** is the most important factor when selecting a fixed deposit scheme. Small finance banks are known for offering higher interest rates compared to traditional banks, making them an attractive option for FD investors. For **2025**, you can find **FD rates between 3.5% and 9.50%**, depending on the bank and your status (general or senior citizen).
2. Senior Citizens' FD Rates: Extra Benefits for Retirees
If you’re a senior citizen, many small finance banks offer an **additional 0.5% to 1%** interest over the general rates. These extra benefits make small finance banks a top choice for retirees looking for secure, high-return investments.
3. FD Tenure: Flexibility in Investment Duration
Small finance banks offer **flexible FD tenures**, ranging from **7 days** to **10 years**. Depending on your investment horizon, you can choose the tenure that aligns with your financial goals. Longer tenures usually offer higher rates.
4. Premature Withdrawal & Penalties: Assess Flexibility
Before you invest in an FD, check the bank's **premature withdrawal** policy. Some banks offer **lower penalties** for early withdrawal, while others may offer a partial interest payout.
5. DICGC Deposit Insurance: Ensuring Safety
Make sure your chosen bank is a member of the **Deposit Insurance and Credit Guarantee Corporation (DICGC)**, ensuring that your deposits are **insured up to ₹5 lakh** in case of any financial instability in the bank.
Small Finance Bank Details with the Highest FD Interest Rates
1.Equitas Small Finance Bank
Equitas Small Finance Bank offers competitive FD rates, making it one of the best small finance banks for FD investments in 2025. General citizens can expect interest rates ranging from 3.5% to 8.25%, while senior citizens can earn up to 9%. With flexible tenures, Equitas is an ideal option for both short and long-term investments.
2. Utkarsh Small Finance Bank
Utkarsh Small Finance Bank offers one of the best FD interest rates with a range of 4% to 8.5% for general citizens and 4.6% to 9.10% for senior citizens. The bank also offers a 0.60% additional benefit for senior citizens, making it a top pick for retirees looking to grow their savings.
3. Unity Small Finance Bank
Unity Small Finance Bank is another top small finance bank offering 9% FD rates for general citizens and 9.50% for senior citizens, making it an excellent option for high returns on fixed deposits in 2025.
4. Ujjivan Small Finance Bank
Ujjivan Small Finance Bank offers attractive rates for general citizens and senior citizens. The general FD rates range from 3.75% to 8.25%, while senior citizens can avail of interest rates as high as 8.75%. Additionally, senior citizens enjoy an extra 0.50% interest.
5. North East Small Finance Bank
North East Small Finance Bank offers competitive FD rates, with returns of up to 9% for both general citizens and senior citizens. This makes it one of the best options for FD investments in 2025.
6. Suryoday Small Finance Bank
Suryoday Small Finance Bank is known for its higher FD rates, offering up to 8.60% for general citizens and 9.10% for senior citizens. This makes it one of the best small finance banks to invest in for high returns on fixed deposits.
7. AU Small Finance Bank
AU Small Finance Bank offers competitive interest rates, with returns ranging from 3.75% to 8% for general citizens and 4.25% to 8.50% for senior citizens. The senior citizens’ bonus is a great advantage for retirees looking to invest in fixed deposits.
8. Fincare Small Finance Bank
Fincare Small Finance Bank offers attractive FD rates ranging from 3.75% to 8.50% for general citizens and 4.25% to 9% for senior citizens. The high rates and flexible tenures make it a good choice for investors in 2025.
9. Jana Small Finance Bank
Jana Small Finance Bank offers stable and competitive FD interest rates, with senior citizens earning up to 8.75%. The interest rate for general citizens ranges from 4% to 8.25%, providing a solid option for fixed deposit investments.
10. IDFC First Small Finance Bank
IDFC First Small Finance Bank provides high returns of up to 9% for senior citizens. For general citizens, the rates range from 4% to 8.50%, making it a great choice for both short-term and long-term FD investments in 2025.
Maximize Your Returns with Small Finance Banks in 2025
In 2025, small finance banks offer some of the best FD interest rates, making them a smart choice for investors looking to maximize returns on their fixed deposits.
Whether you're a general citizen or a senior citizen, small finance banks like Unity Small Finance Bank (with 9.50% returns) and Utkarsh and Equitas (offering up to 9%) provide ample options for high-yield FD investments.
Carefully consider the tenure, interest rates, and any additional benefits for senior citizens before making an investment. With these insights, you can make an informed decision and enjoy high returns from your FD investments in 2025.