In case you have been watching fixed deposits very carefully, then here is news that can change the whole situation. Towards the end of December 2025, the three largest Indian banks, namely SBI, HDFC Bank, and ICICI Bank, gradually lowered their FD interest rates, which primarily resulted from the Reserve Bank of India’s recent repo rate decrease.
These new developments have definitely raised fresh doubts among depositors: is it better to lock in the rates now or wait for a longer period? Although the rates haven’t been slashed significantly, banks have adjusted returns up and down across the most important tenures, making some FDs more appealing than others, particularly for senior citizens and short-term investors. If security, guaranteed returns, and perfect timing are your main concerns, this rate change is the perfect reminder to be patient and compare tenures carefully before deciding where to put your money.
Comparison Of Best FD Rates (December 2025)
For deposits below ₹3 crore
| Tenure | SBI (Public / Senior) | HDFC Bank (Public / Senior) | ICICI Bank (Public / Senior) |
|---|---|---|---|
| 1 Year | 6.25% / 6.75% | 6.25% / 6.75% | 6.25% / 6.75% |
| 2 Years | 6.40% / 6.90% | 6.45% / 6.95% | 6.40% / 6.90% |
| 3 Years | 6.30% / 6.80% | 6.45% / 6.95% | 6.60% / 7.20% |
| 5 Years | 6.05% / 7.05% | 6.40% / 6.90% | 6.60% / 7.20% |
Best FD Interest Rates & Top Bank Schemes To Watch (December 2025)
Peak FD Interest Rates
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SBI: 6.45% (general) / 6.95% (senior citizens) for a 444-day tenure
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HDFC Bank: 6.60% (general) / 7.10% (senior citizens) for 18–21 months
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ICICI Bank: 6.60% (general) / 7.20% (senior citizens) for 2–5 years
Best FD Options for Short-Term Investments
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SBI: Amrit Vrishti Scheme offering 6.45% (general) and 6.95% (senior citizens) for 444 days
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HDFC Bank: Highest regular rate of 6.60% for 18–21 months
Best FD Rates for Senior Citizens
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ICICI Bank: Highest return of 7.20% for tenures from 2 years 1 day to 5 years
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SBI: 7.05% for long-term deposits (5–10 years) under the We-Care Scheme
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