Introduction
In today’s changing financial environment, it is more important than ever to maximize the growth of your savings. With many banks competing to attract customers, they are offering attractive interest rates on savings accounts and fixed deposits. These high interest rates help savers earn more on their hard-earned money and help them achieve their financial goals in a shorter period of time. However, choosing the right bank is crucial, as high rates often come with specific conditions or account types. As of 2025, many banks in India stand out by offering highly competitive interest rates. This makes them popular choices for individuals looking to grow their wealth efficiently. Whether you are a conservative saver or someone looking for the best returns on your investments, understanding which banks offer the best interest rates can help you make better financial decisions. Along with interest rates, it is also important to consider other factors such as the bank’s reputation, security, customer service, and digital banking facilities. This guide aims to highlight the best banks offering the highest interest rates in India as of 2025, helping you choose the best options to secure your financial future and increase your savings potential. Savings Accounts For savings accounts, interest rates generally range from 2.60% to 8.00%, depending on the balance you hold. Many banks offer lower interest rates for deposits up to Rs 1 lakh and higher rates for balances above that limit. Fixed Deposits Interest rates for fixed deposits generally range from 2.50% to 8.50% for tenures ranging from 7 days to 10 years. Small finance banks and non-banking financial companies (NBFCs) offer the highest FD interest rates.
Factors That Influence High Interest Rate Bank
Which bank offers the highest interest rate? Once you understand this, you can decide for yourself!
When I first tried to choose the bank that offers the highest interest rate, I was really confused. I thought that all interest rates are fixed. But, I came to know later that it changes depending on some important factors. There is something called RBI Repo Rate! First, there is something called RBI repo rate. I don’t want to lie, I searched on Google to find out about it. In short, this is the interest rate at which all our banks borrow from the Reserve Bank of India. When this repo rate increases, banks also increase their interest rate. It is like a chain reaction. Similarly, if the Reserve Bank reduces the interest rate, banks also reduce the interest on savings and fixed deposits. The type of bank is also a reason! Next, the type of bank. I have noticed that small banks or private banks offer higher interest rates than big government banks. This may be a trick of theirs to attract more customers like us. The type of account is also important! Similarly, the type of account we open also changes the interest rate. Fixed Deposits offer higher interest rates than Savings accounts. If you do not need money immediately, investing in a fixed deposit can give you good returns. After understanding all these things, I got a clarity. I stopped choosing a bank based on just the big names and started deciding on what would really make our money grow.
Top 10 High-Interest Rate Banks in India (2025)
When I started looking for the best place to park my savings, the first thing I searched for was “Which bank gives the highest interest rate in India?” I was surprised to see that it’s not always the big, well-known banks that offer the best returns. In fact, many small finance banks and a few private sector banks offer much better interest rates than the public ones we’ve all grown up trusting.
After digging into the latest updates, comparing interest rates, and even calling a few banks myself to double-check, here’s my list of the top 10 high-interest rate banks in India for 2025. I’ve included both savings and fixed deposit (FD) rates where applicable.
1. AU Small Finance Bank
Honestly, AU is one of my top picks. Their savings account interest can go up to 7.25%, depending on the balance. FDs offer around 8.00% for senior citizens. What I liked about them is their strong digital banking and great customer service.
2. Equitas Small Finance Bank
Equitas offers up to 7.50% interest on savings accounts and up to 8.25% on fixed deposits. I opened a small FD here just to test the process, and it was super smooth — all done online.
3. Ujjivan Small Finance Bank
This bank caught my attention because they offer up to 7.50% on savings and 8.50% on FDs. I spoke to a friend who banks here, and he’s had a good experience so far.
4. Jana Small Finance Bank
With savings rates as high as 7.00% and FDs reaching 8.50%, Jana is definitely worth considering. They’re still expanding their branches, but their mobile app is improving.
5. Suryoday Small Finance Bank
They offer 6.50%–7.25% on savings and up to 8.60% on FDs. It’s not as widely known, but from what I’ve read, they’re reliable, especially if you’re comfortable managing most things online.
6. RBL Bank
RBL is a private sector bank that surprised me. They give up to 7.50% on savings accounts and 7.80% on FDs. Their services are quite modern, and I’ve had a credit card from them before with a decent experience.
7. IDFC FIRST Bank
This bank offers around 7.00% on savings and 7.75% on FDs. One thing I like about IDFC is their zero-balance savings account option and their app, which is genuinely user-friendly.
8. IndusInd Bank
IndusInd gives 6.75% on savings (for higher balance slabs) and FDs up to 7.75%. They also have some great account variants like the Indus Delite, which comes with added perks.
9. Yes Bank
Yes Bank has gone through ups and downs, but they’re now back with decent offers. They provide 7.00% on savings and 7.75% on FDs. I’d still suggest keeping only a part of your funds here, just to be safe.
10. Kotak Mahindra Bank
Kotak’s 811 account became really popular, and while their savings rate is up to 6.00%, they sometimes run limited-period FD offers with higher returns. Their mobile experience is excellent, especially for younger users like me who prefer everything digital.
Comparison Table: Top Banks & Their Interest Rates
When I was trying to decide where to open a savings account or invest in a fixed deposit, I realized I needed to see everything clearly in one place. So, I actually made a small chart for myself to compare interest rates across the top banks. It helped me a lot — and I hope it helps you too.
Here’s a simplified version of the table I created, showing both savings account interest rates and fixed deposit (FD) rates for 2025 (as per the latest info I could gather):
| Bank Name | Savings Account Rate | Fixed Deposit Rate (up to) |
|---|---|---|
| AU Small Finance Bank | Up to 7.25% | Up to 8.00% (8.50% for senior citizens) |
| Equitas SFB | Up to 7.50% | Up to 8.25% |
| Ujjivan SFB | Up to 7.50% | Up to 8.50% |
| Jana SFB | Up to 7.00% | Up to 8.50% |
| Suryoday SFB | Up to 7.25% | Up to 8.60% |
| RBL Bank | Up to 7.50% | Up to 7.80% |
| IDFC FIRST Bank | Up to 7.00% | Up to 7.75% |
| IndusInd Bank | Up to 6.75% | Up to 7.75% |
| Yes Bank | Up to 7.00% | Up to 7.75% |
| Kotak Mahindra Bank | Up to 6.00% | Up to 7.50% (offer-based) |
Tips to Choose the Best High-Interest Bank for You
Choosing a bank just because it offers the highest interest rate? I’ve been there — and I quickly realized there’s a lot more to it. The rate might look great on paper, but if the bank’s service is poor or the app never works, the experience becomes frustrating really fast.
Next, I looked into customer reviews and even visited a nearby branch. A friend of mine had trouble withdrawing his money from a lesser-known bank, so that made me cautious. I’d rather settle for 0.5% less interest than deal with unhelpful support.
Also, since I prefer doing everything from my phone, I tested their mobile apps. Some banks offer amazing interest rates but have buggy apps — which was a no-go for me.
Conclusion
Following through with significant research and analysis of different banks, I’ve realized that picking the right one requires more than simply choosing one with the best possible interest rate. While earning from savings or fixed deposits is a plus, feeling ensured that the funds are safe and can be accessed conveniently at the right time is vital. In my case, using a variety of banks from different sectors worked best – I kept a part of my funds in smaller finance banks that provided higher interest rates and kept the rest in a more trusted and well-established bank for everyday access.
At the end of the day it comes down to what you are after. If high returns are what you want then you have many banks to choose from which offer great rates. But if what you value is peace of mind and consistent service go with the well known players, they may offer a little less in interest but make up in security.
FAQ’s
1. Who is offering the most interest in India?
Fixed Deposits are offered with the most interest by India’s Suryoday Small Finance Bank and Ujjivan Small Finance Bank in the year 2025. Their FD interest rates depending on the tenor of the deposit and customer category (senior citizens or general customers) is up to 8.60%
2. Which bank offers 8.75% interest?
Currently, Suryoday Small Finance Bank offers interest of up to 8.75% on certain fixed deposit schemes for senior citizens. General customers can get a little lower than this, i.e. around 8.50%
3. Top 10 banks in India that offer the highest interest (is SBI in this list?)
Although SBI (State Bank of India) is one of the most trusted banks in our country, it does not offer the highest interest rates. Most small finance banks like AU, Equitas, Ujjivan, and Jana offer higher interest rates than SBI
4.Where can I find a list of all bank interest rates?
All of the banks’ savings and fixed deposit (FD) interest rates are on the banks’ official websites. Also BankBazaar, Groww, and RBI’s official website are example of financial comparison websites that do publish most up to date lists. Always make prior checks on rates before investing as the market interest rates are volatile.
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