For investors seeking safe and reliable investment options in 2025, fixed deposits (FDs) continue to be one of the most trusted choices. They not only provide guaranteed returns but also protect capital, making them ideal for conservative investors.

As of September 2025, several leading banks in India have revised their FD interest rates, offering attractive returns across different tenures. Let’s look at which banks are providing the highest FD rates and how they compare with other secure savings schemes.

Among the major public sector banks, Canara Bank is currently offering one of the most lucrative FD rates in the market. Depending on the tenure, interest rates can go as high as 7.90% per annum.

This makes Canara Bank an attractive option for both regular customers and senior citizens who are looking for safe yet rewarding returns.

Punjab National Bank (PNB) has structured its FD offerings to specifically benefit older investors. While general customers earn lower returns, super senior citizens (aged 80 and above) can avail FD rates of up to 7.30% per annum.

For retirees looking for a dependable monthly or quarterly income source, PNB’s scheme ensures financial stability with relatively high returns.

Private sector giant HDFC Bank is offering FD rates of up to 7.60%. With a wide range of tenure options, HDFC’s FD plans are popular among salaried individuals and urban investors who prefer the security of a trusted bank along with competitive interest payouts.

IDFC First Bank continues to attract retail depositors with FD interest rates as high as 7.50%. The bank is known for customer-friendly products, and its FD schemes provide a balance of safety, flexibility, and decent returns.

India’s largest public sector bank, the State Bank of India (SBI), is offering its special Amrit Vrishti FD with a tenure of 444 days at an interest rate of 6.60%.

Though slightly lower than its peers, SBI remains a preferred choice due to its vast network, reliability, and trust among depositors. For senior citizens, the rate is slightly higher, making it a safe option for those who prioritize security over returns.

Almost all banks offer additional interest rates for senior citizens, typically ranging from 0.25% to 0.75% higher than standard FD rates. For retirees and pensioners, this additional benefit makes FDs a steady source of income with low risk.

While FDs remain popular, investors often compare them with other safe schemes such as:

• Post Office Savings Schemes – Backed by the government, these offer stable returns and are widely accessible.

• Public Provident Fund (PPF) – Provides tax benefits under Section 80C and delivers long-term, risk-free returns.

However, in the current scenario, FDs stand out as a balanced investment choice, offering liquidity, assured returns, and flexibility across tenures.

As of September 2025, Canara Bank leads with FD rates up to 7.90%, followed by HDFC Bank (7.60%), IDFC First Bank (7.50%), and PNB (7.30% for super senior citizens). SBI, though offering a comparatively lower 6.60% on its special 444-day FD, remains a trusted option.

For investors looking for capital protection with attractive interest, FDs continue to be one of the safest and most reliable avenues. Senior citizens, in particular, stand to benefit from the additional interest rate perks offered across banks.

If you are planning your investments in 2025, diversifying between FDs, post office schemes, and PPF could provide the right balance of safety, returns, and tax benefits.