Bank FDs: This bank can get you highest returns of 9% on fixed deposits now

If you are a conservative investor and looking for the best place to park your money in a fixed deposit (FD), the North East Small Finance Bank stands out from the crowd. It is currently offering the highest FD interest rate in the market — 9% per annum for a tenure ranging from 18 months 1 day to 36 months. This FD will help make it the most attractive option for savers seeking superior returns with the safety of a bank deposit.

Among private sector banks, Bandhan Bank leads with an interest rate of 8.05% for a 1-year deposit. This is followed by CSB Bank, DCB Bank, and RBL Bank, each offering 8.00% for tenures ranging between 500 to 501 days. The third-best option in this segment is IndusInd Bank, Yes Bank and SBM Bank India, with a rate of 7.75% for 1 year to less than 2 years and for SBM Bank India with a tenure of 5 years.

In the public sector, the Central Bank of India offers the most attractive return with a rate of 7.50% for a very long tenure of 3333 (9 years) days. The next best is Bank of Maharashtra comes with 7.45% for 366 days. Followed by Union Bank of India, Indian Overseas Bank, and Indian Bank, each offering 7.30% on tenures ranging between 400 to 456 days.

Deutsche Bank takes the top spot in the foreign bank category with an interest rate of 8.00% for deposits of 1 year to 3 years. Standard Chartered Bank follows it at 7.50% (1 year to 375 days), while HSBC Bank offers a lower 7.00% for tenures of 601 to 699 days.

In its 54th meeting — the first for the financial year 2025–26 — the Monetary Policy Committee (MPC) unanimously decided to cut the policy repo rate by 25 basis points, reducing it to 6 per cent with immediate effect. The repo rate, which is the interest rate at which the Reserve Bank of India (RBI) lends to commercial banks, was lowered to encourage greater lending and spur investment activity. As a result, fixed deposit rates may begin to trend downward in the coming months as banks adjust to the lower cost of borrowing.