Core Insights - Fixed deposit (FD) interest rates are providing stability in uncertain financial markets, with returns guaranteed on the principal amount even amidst stock market fluctuations [1][9] - Small finance banks are leading the sector with some of the highest FD interest rates, offering returns up to 8.50% per annum for select tenures [2][9] Small Finance Banks - AU Small Finance Bank offers an interest rate of 7.6% for a tenure of 30 months to 36 months, with rates of 6.85%, 7.6%, and 7.25% for 1-year, 3-year, and 5-year tenures respectively [3] - Equitas Small Finance Bank provides an 8% interest rate for a tenure of 888 days, with rates of 7.4%, 7.5%, and 7.5% for 1-year, 3-year, and 5-year tenures [3] - ESAF Small Finance Bank offers the highest rate of 8.5% for a tenure of 501 days, with lower rates for longer tenures [3] Private Sector Banks - SBM Bank India has the highest FD interest rate at 8.35% per annum for a tenure of 391 days to 15 months [4][10] - Bandhan Bank and RBL Bank offer interest rates of 7.75% and 7.70% respectively [4][10] - Other notable private banks include Axis Bank with a maximum rate of 7.2% for a tenure of 5 years, and HDFC Bank with a rate of 7% for tenures less than 4 years [6] Public Sector Banks - Punjab & Sind Bank offers the highest interest rate of 7.25% for a tenure of 666 days, while Bank of Maharashtra provides a rate of 7.15% for a tenure of 400 days [8][10] - Other public sector banks like Bank of Baroda and Bank of India offer rates of 7% and 7.1% respectively for various tenures [8]

Core Insights - The article emphasizes the importance of comparing interest rates from different banks before opening a term deposit, particularly highlighting that long-term deposits generally offer higher interest rates than short-term ones [1][2]. Interest Rates Offered by Banks - HDFC Bank offers 6.45% interest on a three-year fixed deposit, 6.25% on a one-year deposit, and 6.45% on a two-year deposit, effective from June 25, 2025. Senior citizens receive an additional 50 basis points [3]. - ICICI Bank provides 6.6% interest on three-year fixed deposits for general depositors and 7.1% for senior depositors, with one-year and two-year deposits earning 6.25% and 6.4%, respectively [4]. - Kotak Mahindra Bank offers 6.4% interest on three-year fixed deposits for general citizens and 6.90% for senior citizens, with one-year and two-year deposits at 6.25% and 6.4%, respectively, effective from August 20 [5]. - Federal Bank offers 6.4% on one-year, 6.5% on two-year, and 6.5% on three-year fixed deposits, effective from August 18, 2025 [7]. - State Bank of India (SBI) provides 6.3% interest on three-year fixed deposits for regular citizens and 6.8% for senior citizens, with one-year and two-year deposits earning 6.25% and 6.45%, respectively, effective from July 15, 2025 [7]. - Bank of Baroda offers 6.50% interest on three-year fixed deposits for regular citizens and 7% for senior citizens, with one-year and two-year deposits at 6.25% and 6.5%, effective from September 12 [8]. - Union Bank of India provides 6.6% interest on three-year term deposits for regular citizens and 7.1% for senior citizens, with one-year and two-year deposits at 6.4% and 6.5%, respectively, effective from August 20, 2025 [9]. Summary of Interest Rates for Senior Citizens - HDFC Bank: 6.95% for three-year deposits [6] - ICICI Bank: 7.1% for three-year deposits [6] - Kotak Mahindra Bank: 6.90% for three-year deposits [6] - Federal Bank: 6.9% for three-year deposits [6] - State Bank of India (SBI): 6.8% for three-year deposits [6] - Bank of Baroda: 7.0% for three-year deposits [6] - Union Bank of India: 7.1% for three-year deposits [6]