New Delhi, September 26, 2025 – Fixed deposits (FDs) continue to be one of the most trusted investment options for Indian savers. Despite the growing popularity of mutual funds, stocks, and digital investment avenues, many people still prefer FDs for their safety, liquidity, and guaranteed returns. Among different tenures, the 1-year FD remains particularly popular because it provides stability without locking funds for the long term.

If you are planning to open a 1-year FD, here is a list of 10 leading banks offering the highest interest rates right now. These include both public and private sector banks, and in many cases, senior citizens get even higher returns compared to regular investors.

1. Bandhan Bank

• General Investors: 7% per annum

• Senior Citizens: 7.50% per annum
  For deposits up to ₹3 crore, Bandhan Bank offers one of the most attractive FD rates in the country. Senior citizens enjoy an additional 0.50% benefit.

2. DCB Bank

• General Investors: 6.90% per annum

• Senior Citizens: 7.15% per annum
  DCB Bank offers competitive returns for 1-year deposits, making it a preferred choice for conservative investors.

3. IndusInd Bank

• General Investors: 6.75% per annum

• Senior Citizens: 7.25% per annum
  The bank’s 1-year FD scheme provides a strong balance of returns and security.

4. Yes Bank

• General Investors: 6.65% per annum

• Senior Citizens: 7.15% per annum
  Yes Bank continues to attract short-term depositors with higher-than-average rates compared to bigger public sector banks.

5. Union Bank of India

• General Investors: 6.40% per annum

• Senior Citizens: 6.90% per annum
  A reliable option from a public sector bank, Union Bank’s FD rates are stable and appealing, especially for older customers.

6. Central Bank of India

• General Investors: 6.40% per annum

• Senior Citizens: 6.90% per annum
  This government-owned bank matches Union Bank’s FD rates, offering security along with competitive interest.

7. State Bank of India (SBI)

• General Investors: 6.25% per annum

• Senior Citizens: 6.75% per annum
  As India’s largest public sector bank, SBI remains a trusted option, though its rates are slightly lower compared to smaller banks.

8. Punjab National Bank (PNB)

• General Investors: 6.25% per annum

• Senior Citizens: 6.75% per annum

• Super Senior Citizens (80+ years): 7.05% per annum
  PNB stands out for its special scheme for super senior citizens, offering the highest rate among large public sector banks.

9. HDFC Bank

• General Investors: 6.25% per annum

• Senior Citizens: 6.75% per annum
  One of India’s leading private sector banks, HDFC provides a safe and dependable FD option with reasonable returns.

10. ICICI Bank

• General Investors: 6.25% per annum

• Senior Citizens: 6.75% per annum
  ICICI Bank mirrors HDFC’s FD rates, making it a strong option for those preferring private banks with digital ease.

11. Indian Bank

• General Investors: 6.10% per annum

• Senior Citizens: 6.60% per annum
  Though slightly lower than other banks, Indian Bank still offers steady returns with the security of a public sector institution.

Key Takeaways for FD Investors

• Highest Rates: Bandhan Bank leads with 7% for regular investors and 7.50% for senior citizens.

• Public vs. Private Banks: Private banks like Bandhan and IndusInd are offering better returns than major PSUs such as SBI and PNB.

• Extra Benefits for Seniors: Most banks provide 0.25%–0.50% higher interest to senior citizens. PNB stands out with a special 7.05% super senior citizen rate.

• Liquidity Advantage: 1-year FDs allow savers to earn decent returns without long-term lock-ins of 5–10 years.

Final Word

For individuals who prioritize safety and guaranteed returns, 1-year FDs remain a highly attractive investment option. While private banks are offering the highest returns, senior citizens have an edge across all banks with additional interest benefits.

Whether you are a young investor looking for stability or a retiree seeking steady income, these 10 banks provide some of the best FD rates in India right now.