The Reserve Bank of India (RBI) has cut the repo rate for the third consecutive time. In the Monetary Policy Committee (MPC) meeting held on 6 June 2025, RBI reduced the repo rate by 50 basis points to 5.50%. After this big decision, naturally many banks have reduced the interest rates on Fixed Deposit (FD), or they are preparing to reduce them.

This news can be a matter of concern for those investors who want safe and assured returns by investing their hard-earned money in FD. But, don’t panic. It is not at all that the opportunity to get great interest in FD is over now. If you invest a little wisely and choose the right tenure, then you can still easily get better interest. Let us know which bank is giving the highest interest on FD for which period, especially for senior citizens.

Why investing in FD is beneficial even after the reduction in interest rates

The reduction in repo rate has a direct impact on the cost of borrowing of banks, due to which they adjust the interest rates on both their deposits and loans. Although FD rates are decreasing, they still provide safe and stable returns compared to many other investment options available in the market. Especially for those investors who do not want to take risks, FD remains a reliable option. With the right strategy and a little research, you can still get maximum benefit on your FD.

FD interest rates of major banks

Here we are telling you in detail about the FD interest rates (for both general citizens and senior citizens) being offered by some of the major banks of the country:

State Bank of India

The country’s largest bank, State Bank of India (SBI), is offering interest at the rate of 6.70% on FDs to general citizens for a period of 2 years to 3 years. At the same time, senior citizens (60 years and above) are getting interest at an attractive rate of 7.20% for the same period. SBI offers a good return to its customers with security and reliability.

HDFC Bank

This largest private-sector bank is still offering excellent interest rates for a period of 15 to 18 months. HDFC Bank is offering interest at the rate of 6.85% to general citizens for this period. This rate is even more attractive for senior citizens, they are getting an interest of 7.35% for the same period. This is a great option for those who want to invest in the medium term.

ICICI Bank

This leading private sector bank is offering the highest interest for a period of 18 months to 2 years. ICICI Bank is offering interest at the rate of 6.85% to general citizens for this period. For senior citizens, this rate is 7.35%. If you are thinking of investing for this particular period, then ICICI Bank is a strong contender.

Bank of Baroda

The government bank, Bank of Baroda, is giving better returns on 1 year FD. This bank is offering interest at the rate of 6.70% on 1 year FD to general citizens. At the same time, senior citizens are getting interest at the rate of 7.20%, and super senior citizens (80 years and above) are getting interest at the rate of 7.20% for the same period. This is ideal for those who want a safe investment for a short period.

 Punjab National Bank

Punjab National Bank (PNB) is also still giving great returns on 1 year FD. This bank is giving interest at the rate of 6.70% on 1 year FD to general citizens. At the same time, senior citizens are being provided interest at the rate of 7.20% and super senior citizens at the rate of 7.50%. PNB is also a great option for short-term investment.