Best Bank for High Interest Rates in India in 2025 | Top 5 Banks for Maximum Interest

June 27, 2025

Best Bank for High Interest Rates in India in 2025

Explore the best banks for high interest rates on savings accounts, fixed deposits, and recurring deposits in India. Find the most rewarding banks in 2025 for growing your money.

When it comes to investing your hard-earned money, selecting the right bank offering the best interest rates can make a significant difference in the growth of your funds. Whether you are looking for high-interest savings accounts, fixed deposits, or recurring deposits, understanding which banks offer the highest interest rates is crucial to making the right financial decision.

In this article, we will explore the best bank for high interest rates in India, providing you with a detailed overview of the top banks in 2025 that offer the most rewarding interest rates.

1. HDFC Bank: Leading the Way for High Fixed Deposit Interest Rates

HDFC Bank has always been a preferred choice for many investors due to its consistent track record and trustworthiness. In 2025, HDFC Bank offers attractive interest rates on fixed deposits, making it one of the best banks to grow your wealth.

Interest Rates at HDFC Bank (2025):

Savings Account: 3.00% – 3.50% per annum.
Fixed Deposit: 3.00% – 7.00% depending on the tenure.
Recurring Deposit: 4.00% – 7.00% per annum.

While the savings account interest rate at HDFC Bank is fairly average, their fixed deposit and recurring deposit options are highly competitive. HDFC also offers senior citizens higher interest rates on FDs, which can go up to 7.50% per annum.

HDFC’s robust customer service, extensive network of ATMs, and online banking features further enhance its appeal as a top choice for growing your savings.

2. ICICI Bank: Best for High Returns on Savings Accounts

ICICI Bank is another giant in the Indian banking sector that consistently ranks among the best banks for high interest rates. In 2025, ICICI Bank has improved its offerings, particularly when it comes to savings accounts.

Interest Rates at ICICI Bank (2025):

Savings Account: 3.00% – 3.50% per annum.
Fixed Deposit: 3.00% – 7.25% per annum.
Recurring Deposit: 4.00% – 7.00% per annum.

ICICI’s savings account offers interest rates of up to 3.50% for regular customers, with higher rates for specific categories, such as salary accounts or children’s savings. What stands out is ICICI’s FD interest rate, which offers up to 7.25% for tenures ranging from 1 year to 10 years.

The bank also provides online FD management tools, making it easier for customers to track their deposits and make informed decisions.

3. State Bank of India (SBI): Best Public Sector Bank for High Interest Rates

State Bank of India (SBI) is one of the most trusted public sector banks in India. While its interest rates may not be the highest compared to private banks like HDFC or ICICI, SBI’s long-term stability, vast network, and government backing make it a reliable choice for savings and fixed deposits.

Interest Rates at SBI (2025):

Savings Account: 2.70% – 3.00% per annum.
Fixed Deposit: 3.00% – 6.75% per annum.
Recurring Deposit: 4.00% – 6.75% per annum.

SBI offers competitive interest rates on fixed deposits, particularly for senior citizens, with rates going up to 7.25%. Although the savings account interest rate is lower than other banks, SBI remains a strong contender due to its vast presence and credibility.

4. Axis Bank: A Reliable Option for Fixed Deposits with High Interest Rates

Axis Bank is known for offering competitive interest rates across various deposit schemes, making it one of the best options for individuals looking to maximize returns on fixed deposits and savings accounts.

Interest Rates at Axis Bank (2025):

Savings Account: 3.50% – 4.00% per annum.
Fixed Deposit: 3.50% – 7.25% per annum.
Recurring Deposit: 4.00% – 7.25% per annum.

Axis Bank offers a variety of deposit options with flexible tenures. It provides interest rates as high as 7.25% on fixed deposits, making it one of the top contenders for FD investments. For regular savings accounts, Axis Bank provides an interest rate of up to 4%, which is considered among the best in the industry.

The bank also offers premium services to its customers, including personalized banking support and easy online access to account management.

5. Yes Bank: Best for High-Yielding Fixed Deposit Schemes

Yes Bank, known for its innovative banking solutions and customer-friendly policies, offers high interest rates on both fixed deposits and recurring deposits. It is widely considered as one of the best banks for high interest rates in India, especially for customers looking to lock in their money for medium-to-long-term periods.

Interest Rates at Yes Bank (2025):

Savings Account: 4.00% – 5.00% per annum.
Fixed Deposit: 3.50% – 7.25% per annum.
Recurring Deposit: 4.00% – 7.25% per annum.

Yes Bank provides one of the highest interest rates on savings accounts, with up to 5% annual returns for select customers. Its fixed deposit rates are competitive, with the bank offering up to 7.25% interest on long-term deposits.

Yes Bank also allows for online management of deposits, providing a seamless user experience for customers.

Additional Banks with High Interest Rates in India (2025)

6. Kotak Mahindra Bank

Savings Account: 3.00% – 4.00% per annum.
Fixed Deposit: 3.25% – 7.00% per annum.

Kotak Mahindra Bank is known for its attractive fixed deposit rates and a range of banking products tailored to various needs. It offers competitive rates that make it a strong contender in the list of banks with the best interest rates.

7. IDFC FIRST Bank

Savings Account: 4.00% – 5.00% per annum.
Fixed Deposit: 3.75% – 7.50% per annum.

IDFC FIRST Bank is another notable name, especially when it comes to offering some of the highest returns on savings accounts. Its FD interest rates are equally attractive, especially for long-term deposits.

Factors to Consider When Choosing the Best Bank for High Interest Rates in India

While the interest rate is a crucial factor in choosing the best bank for saving and investing, there are several other factors to consider when making your decision:

Tenure Flexibility: Make sure the bank offers flexible tenures for both fixed and recurring deposits. Some banks allow you to customize deposit durations, which may suit your financial goals better.
Customer Service: The quality of customer service can make a big difference in your overall banking experience. Choose a bank that offers reliable customer support, especially for resolving issues related to deposits.
Online Banking Features: In today’s digital age, online banking is essential. Look for banks that provide robust online and mobile banking services for easy deposit management, bill payments, and fund transfers.
Additional Benefits for Senior Citizens: Some banks offer higher interest rates for senior citizens, making them an attractive option for older individuals looking to maximize their savings.
Liquidity and Withdrawal Terms: If you are looking for high returns but want to ensure easy access to your funds, pay attention to the liquidity options of a particular deposit scheme. Some banks offer more flexible withdrawal options or higher liquidity.

Choosing the best bank for high interest rates in India in 2025 depends on your specific needs—whether you are looking for short-term liquidity or long-term growth. Based on the analysis, HDFC Bank, ICICI Bank, SBI, Axis Bank, Yes Bank, and others such as Kotak Mahindra Bank and IDFC FIRST Bank are some of the top choices for maximizing returns on fixed deposits, savings accounts, and recurring deposits.

While private sector banks generally offer higher interest rates, public sector banks like SBI also provide stability and trust. Ultimately, it’s important to compare interest rates, tenure options, and the overall banking experience before making your choice.

To get the most out of your savings, consider diversifying your investments across multiple banks, ensuring you benefit from the highest returns possible.