Investing in Fixed Deposits (FDs) is a safe and reliable option for people who do not want to take risks and still want to earn good returns on their savings. Recently, many banks have updated their FD interest rates, and some banks are now offering attractive rates of more than 8%. If you are planning to invest in FDs in 2025, here is a list of five banks that are giving the highest interest rates.

These Banks Are Giving High Returns on FDs

1. Utkarsh Small Finance Bank

In this bank, you can open an FD for 7 days to 10 years. Normal customers can get a maximum interest of 8.50%.

2. Suryoday Small Finance Bank

This bank gives a maximum interest of 8.40% on FDs. As per Motilal Oswal, this is a good option for better returns.

3. Shriram Finance

Shriram Finance gives a maximum interest of 8.97% on FDs. It is a very good choice to earn more money.

4. Shivalik Small Finance Bank

This bank gives a maximum interest of 9.25%. This FD is specially good for women.

5. Bajaj Finance

Bajaj Finance gives a maximum interest of 8.90% on FDs. It is a safe and trusted way to invest money.

How Does an FD Work?

When a person opens a Fixed Deposit (FD) account, they have to deposit a fixed amount of money for a set period of time. This money should not be taken out before the end of that time. The time can be as short as 7 days or as long as 10 years, depending on what the person wants.

The interest rate on the FD depends on how much money is deposited and for how long it is kept. If the money is kept for a longer time, the interest rate is usually higher, and the person earns more interest.

The interest earned from the FD is either added to the person’s savings account or added back into the FD after the time period ends. Most banks ask the person to have a savings account to get interest.

Fixed Deposit is a Safe Option

FD is a safe and stable way to invest money. In 2025, banks like Slice, Unity, Suryoday, Utkarsh, and Jana Small Finance Bank are giving high interest rates. But before investing, always check the bank, its interest rate, and the rules. If you choose the right FD, you can get good returns and keep your money safe.