According to reports from The Hindu BusinessLine, fixed deposits continue to offer assured returns with varying interest rates across different banks. The rates are subject to revision after specified tenures depending on individual bank terms and conditions. Some banks and financial institutions allow fixed rates only for definite periods, after which prevailing floating rates become applicable. As per Fortune reports, CD rates have dipped slightly from pre-Fed cut levels, with current rates ranging from 0.21% on 1-month CDs to 1.53% on 12-month CDs, with the national average. The Federal Reserve has maintained rates at 3.50%-3.75% following three consecutive cuts in 2025.
As reported by The Hindu BusinessLine, DBS Bank leads foreign banks with 6% interest rate for deposits under 1 year, while Deutsche Bank offers 5% for the same tenure. HSBC provides 4.1% for short-term deposits, and Standard Chartered offers 5.75% for deposits under 1 year. The rates for longer tenures range from 6.25% to 6.5% across different banks. According to Fortune analysis, while some CDs offer terms as short as a few months, longer-term CDs typically provide higher rates, with the highest rates available on 5-year and 10-year terms.
According to the data compiled by BankBazaar.com, Central Bank of India offers the highest rates at 6.65% for deposits under 1 year, while Bank of Maharashtra provides 5.25% for the same tenure. Bank of Baroda offers 6% for short-term deposits, and Bank of India provides 5.5% for deposits under 1 year. State Bank of India maintains rates at 5.9% for short-term deposits. As per Fortune reports, jumbo CDs typically require minimum deposits of at least $100,000 but offer higher APYs than traditional CDs.
As reported by The Hindu BusinessLine, Axis Bank provides 5.75% for deposits under 1 year, while Bandhan Bank offers 4.20% for the same tenure. ICICI Bank maintains rates at 5.5% for short-term deposits, and IDFC First Bank provides 6.5% for deposits under 1 year. Yes Bank offers 6.5% for short-term deposits, with rates varying across different banks in the private sector. According to Fortune, some banks occasionally offer rates that seem too good to be true, such as 7% APY, though these typically have unfavorable conditions and are only available for very short windows.
According to the compiled data, Jana Small Finance Bank offers the highest rates at 8.11% for deposits under 1 year, while ESAF Small Finance Bank provides 7.75% for the same tenure. Utkarsh Small Finance Bank offers 8.1% for short-term deposits, and Suryoday Small Finance Bank maintains rates at 7.6% for deposits under 1 year. The rates across small finance banks range from 6% to 8.11% for different tenures. As per Fortune, CDs are considered safe investments so long as they are FDIC- or NCUA-insured, with deposits insured up to $250,000 per depositor per bank.
