No-Risk, High Return? These Banks Are Paying 9% on Fixed Deposits!

Banks 9% FD Rates: After the Reserve Bank of India cut the repo rate in February 2025, many people who put money in fixed deposits (FDs) started searching for banks that still offer high interest. Even now, a few small finance banks are giving interest as high as 9% or more. These banks usually offer better returns than big public or private banks, especially for certain FD periods.

Which Banks Are Giving Over 9% FD Interest?

Unity Small Finance Bank

Unity Small Finance Bank is at the top. This bank is giving 9% per year interest to regular customers if they put their money in an FD for 1001 days. For senior citizens, the interest is even better they get 9.5% for the same period. The one-year FD rate at Unity Bank is 7.85% for regular customers, reports ET.

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North East Small Finance Bank

North East Small Finance Bank is also giving 9% interest for FDs between 18 months and 36 months. For one year, it gives 7%. Just like Unity Bank, North East Small Finance Bank also gives a higher rate of 9.5% to senior citizens on longer FDs.

Fincare Small Finance Bank

Fincare Small Finance Bank is giving 9.11% to senior citizens and 8.51% to regular customers for 1000-day FDs. Suryoday Small Finance Bank is another one where senior citizens can earn 9.1% on 5-year deposits, but the bank plans to reduce this from June 1, 2025. So, people may want to invest before the new rate starts.

Equitas Small Finance Bank

Equitas Small Finance Bank offers 9% to senior citizens and 8.5% to others for a term of 888 days. Jana Small Finance Bank is giving the same rates (9% for seniors and 8.5% for others) for 1095 days. ESAF Small Finance Bank also has 9% for senior citizens for FDs of around 2 to 3 years.

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank offers 8.85% for seniors and 8.25% for others for FDs of around 700 days to 2 years. Ujjivan Small Finance Bank has 8.85% for senior citizens and 8.25% for others for a 12-month or 560-day FD.

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AU Small Finance Bank

AU Small Finance Bank is giving 8.5% to senior citizens and 8% to regular customers on FDs that run from 2 years to 3 years. SBM Bank is also offering good rates 8.75% for seniors and 8.25% for others for an FD of 3 years and 2 days.

Even some non-small banks have good FD rates. For example, IDFC FIRST Bank gives 8% to seniors for 1 year and 550 days FDs. DCB Bank is offering up to 8.5% for senior citizens if the deposit is for 25 or 37 months. RBL Bank and YES Bank are offering 8.3% and 8.25% respectively to seniors on FD terms of around 18 to 24 months.

IndusInd Bank

IndusInd Bank gives up to 8.25% to senior citizens on FDs of 1 to 2 years. Shivalik Small Finance Bank is giving 8.6% to seniors for FDs from 1 to 1.5 years. South Indian Bank is offering 7.5% for seniors for 1 year and 1 day FDs.

Banks 9% FD Rates

Source: Paisabazaar data as on March 5, 2025 quoted by ET

Are These Small Finance Banks Safe?

Yes, they are safe like other banks. According to AU Small Finance Bank, the Reserve Bank of India (RBI) regulates and controls small finance banks just like it does with other banks. All the rules like Cash Reserve Ratio and Statutory Liquidity Ratio apply to them. RBI also sets rules like who can start a small finance bank and how much money they need to keep.

Also, small finance banks are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC). This means if something goes wrong with the bank, your deposits up to ₹5 lakh are protected.