Looking To Earn Above 8% Interest On FDs In April 2025? – Check Out These Banks

Lately, a possible trend of declining fixed deposit (FD) interest rates has been observed across the banking sector. This recent reduction raises concerns that banks are reassessing their deposit rates in response to shifting market conditions and evolving economic policies.

Many factors influence these changes, including inflation trends, liquidity in the financial system, and policy decisions by the Reserve Bank of India (RBI). As a result, individuals looking to lock in their money through fixed deposits may want to explore banks that are still offering attractive interest rates before they decline further.

In this article, you will find a detailed overview of banks offering interest rates above 8 per cent on fixed deposits of below Rs 3 crore:

Currently, several small finance banks continue to provide competitive rates, particularly for deposits below Rs 3 crore. NorthEast Small Finance Bank offers the highest interest rate of 9 per cent for tenures ranging from 18 to 36 months. This makes it one of the most attractive options for investors seeking higher returns on their savings.

Suryoday Small Finance Bank provides an 8.25 per cent interest rate for both one-year and three-year deposits, while offering a higher 8.60 per cent rate for a five-year tenure. Such rates can be beneficial for long-term savers who want to maximize their earnings over extended periods.

Equitas Small Finance Bank offers 8.25 per cent for a special tenure of 888 days, making it an interesting option for those looking for slightly different maturity periods. The bank also provides an 8.10 per cent interest rate for a one-year FD, which remains competitive compared to the general trend of declining interest rates. Utkarsh Small Finance Bank provides up to 8.50 per cent for deposit tenures of two to three years, giving investors the flexibility to earn higher returns in the medium term.

Similarly, Ujjivan Small Finance Bank offers an interest rate of 8.25 per cent, while Unity Small Finance Bank provides a competitive 8.60 per cent rate. Jana Small Finance Bank has an 8.25 per cent rate for both one-year and three-year deposits, with a slightly lower 8.20 per cent rate for a five-year tenure. AU Small Finance Bank offers an 8 per cent interest rate, which increases to 8.5 per cent for senior citizens, on deposits with an 18-month tenure. Bandhan Bank provides 8.05 per cent for a one-year FD, making it another viable choice for short-term investors.

Additionally, DCB Bank offers favourable rates for senior citizens, with 8.50 per cent on deposits ranging from 15 months to less than 16 months and 8.15 per cent for a tenure of 61 months. Given the ongoing changes in interest rates, investors should carefully assess their options and consider locking in their FD rates before further reductions occur. Fixed deposits remain a stable investment choice, particularly for those who prioritize safety and guaranteed returns. However, it is advisable to compare different banks and tenures to optimize returns based on individual financial goals and requirements.