Which Bank Gives 9.5% Interest on FD in 2025? Latest India FD Rates Explained

If you’re hunting for 9.5% interest on a fixed deposit (FD), here’s the blunt truth: it’s rare, shows up in bursts, and mostly for senior citizens at select small finance banks on special tenors like 700-1,100 days. For regular depositors, the ceiling is usually closer to 8.5-9.0%. Rates move fast, so the smart play is knowing where these offers appear, how to verify them today, and what trade-offs you’re accepting. I’ll walk you through the exact checks I use when shortlisting FDs for my folks in India.

• Quick jobs you likely want to get done: find out who pays 9.5% (if anyone), confirm if you qualify, compare safer alternatives, calculate post-tax returns, and set up a clean process to grab a deal before it disappears.

TL;DR - Who actually offers 9.5% on FDs in 2025?

- 9.5% is typically a limited-time, senior-citizen-only rate at select small finance banks (SFBs) on special tenors (e.g., 700-1,100 days). Examples that have historically reached those levels: Unity SFB and Suryoday SFB. Always confirm the current rate on the bank’s official rate card.

- For non-senior citizens, the realistic peak is around 9.0% at SFBs on select tenors. Most private and PSU banks sit lower, usually 6.5-7.75% depending on tenor.

- Co-operative banks sometimes advertise high headline rates too, but stick to RBI-regulated, DICGC-insured banks and mind the ₹5 lakh per depositor per bank insurance cap.

- Don’t fixate on the sticker rate. Check post-tax returns, premature withdrawal penalties, tenor traps, payout options, and bank safety.

- Verify today’s rates using the bank’s official rate card, then book quickly if it fits your needs-the best offers don’t last long.

Who actually offers 9.5% on FDs-and what’s the catch?

The phrase everyone searches is “Which bank gives 9.5 interest on FD?” The short answer: when you do see 9.5%, it’s almost always a promotional rate from small finance banks aimed at senior citizens on a specific tenor. If you’re under 60, expect up to ~9.0% at best, not 9.5%.

Why does this happen? Small finance banks compete for deposits and occasionally bump rates to stand out-especially on quirky durations like 777, 888, 999, or ~1001 days. These tenors let them attract funds without repricing their entire book.

Names you’ll come across when hunting for peaks (based on the 2023-2025 cycle): Unity Small Finance Bank and Suryoday Small Finance Bank have previously touched 9.5% for seniors during limited windows on special tenors. Jana, Utkarsh, and AU (after integrating Fincare) have often competed near the top as well, typically in the 8.75-9.25% band for seniors. These aren’t permanent; they ebb and flow with liquidity and RBI policy.

What about big private and PSU banks? They rarely push beyond ~7.5-8.0% even for seniors, preferring stability over promotions. If you’re seeing 9.5% from a large bank for non-seniors, be skeptical-it’s likely outdated or misread.

One more nuance: sometimes you’ll see 9.5% on corporate FDs (from NBFCs), but those aren’t bank FDs. Different regulator, different risk, and no DICGC insurance. If you strictly want a bank FD, focus on scheduled commercial banks (including SFBs) regulated by the RBI and insured by DICGC.

How to verify today’s FD rates fast (and catch limited-time offers)

If you want to actually lock a high rate, you need a quick routine. This is the flow I use when shortlisting FDs:

1. Check official rate cards first. Go straight to the bank’s website (Rates → Fixed Deposits → Domestic Term Deposits). Look for a PDF/HTML table that lists rates by tenor and customer type (General, Senior, NRE/NRO). Ignore aggregator screenshots; they lag.
2. Filter for your profile. Are you 60+? Senior rates are typically +0.50% higher. Some banks give “super-senior” bumps (e.g., 80+). If you’re under 60, don’t chase senior-only headlines.
3. Focus on special tenors. Scan for quirky durations (e.g., 700-1,100 days, 999-1001 days). That’s where 9.0-9.5% tends to hide. Regular 1Y/2Y/3Y slabs are usually lower.
4. Confirm payout option and compounding. Cumulative FDs show a higher effective yield due to compounding (often quarterly). Monthly/quarterly interest payouts reduce the effective annualised return. Check the “effective yield” column.
5. Read the fine print. Promo window dates, minimum deposit, max cap, premature withdrawal penalties (often 0.5-1.0% below applicable rate), and whether the promo is for “new funds only.”
6. Safety checks in 5 minutes.
   • Is it a scheduled commercial bank? (All SFBs are.)
   • DICGC insurance applies up to ₹5 lakh per depositor per bank (principal + interest).
   • Spread deposits across banks if you exceed ₹5 lakh.
   • For co-operative banks, be extra cautious; check RBI directives and recent news.
7. Book fast, but don’t skip taxes. If it fits, place the FD via net banking or in-branch. For tax: bank interest is fully taxable per slab; TDS applies above ₹40,000 (₹50,000 for seniors) under Section 194A. Submit Form 15G/15H if you qualify.

Pro tip: set calendar reminders to re-check SFB rate cards every 10-15 days. The best promos often last a few weeks, sometimes days.

Compare FD rates by bank type (and know what’s “normal” vs “promo”)

Here’s a practical snapshot of where rates usually land. Use this to sanity-check what you’re seeing today:

Ranges above reflect common sightings across the 2024-2025 rate cycle. Always rely on the bank’s current rate card for the precise number you’ll receive today.

Don’t chase 9.5% blindly: do these quick math and safety checks

The sticker rate is only one piece. Before you jump on a 9.5% FD, run these checks so you don’t give back your gains later.

• Post-tax reality check: Bank FD interest is fully taxable. Rough, quick math for a 1-year FD:
  • 30% slab: 9.5% → ~6.65% post-tax (ignoring cess/surcharge)
  • 20% slab: 9.5% → ~7.6% post-tax
  • 5% slab: 9.5% → ~9.0% post-tax
  If you’re in a high tax bracket, a slightly lower FD paired with better liquidity might be smarter.
• Effective yield vs payout: Cumulative FDs compound (often quarterly), boosting effective annualised yield. Monthly/quarterly payouts reduce compounding. If you need cash flow (retirees), payout is fine; just compare “effective yield” apples-to-apples.
• Premature break penalty: Most banks deduct 0.5-1.0% from the applicable rate for your actual holding period if you break early. On a promo tenor, that can sting. If you’re not sure about liquidity, split one big FD into 3-4 smaller ones (laddering).
• Insurance and limits: DICGC insures up to ₹5 lakh per depositor per bank (principal + interest). If your deposit will cross that, spread across banks or entities. This is the simplest risk control you have.
• Tax admin: TDS under Section 194A kicks in above ₹40,000 per bank (₹50,000 for seniors). If your total income is below taxable limits, submit Form 15G/15H to the bank at the start of the FY.
• 5-year tax-saving FD? Yes, it qualifies for Section 80C (up to ₹1.5 lakh), but rates are usually lower and there’s a lock-in with no premature withdrawal. Use it only if you need 80C and can lock funds for 5 years.
• NRIs: NRE FDs require fresh foreign remittance and are tax-free in India (while resident status is NRI), but rates are often lower than rupee domestic promos. NRO FDs are taxable. Check the bank’s NRE/NRO slabs separately.

Rule of thumb: If you need flexibility, accept 0.25-0.50% lower and keep liquidity. If you’re certain about the tenor and you’re a senior, grab the promo but split across banks to stay within DICGC caps.

Quick answers and next steps (FAQs, scenarios, and a simple decision path)

FAQ - Most likely follow-ups

• Is any major bank giving 9.5% to non-seniors? Highly unlikely. For non-seniors, peak rates around 9.0% show up at SFBs on quirky tenors. Big private/PSU banks sit lower.
• Which SFBs have touched 9.5% for seniors recently? Unity SFB and Suryoday SFB have historically advertised up to 9.5% for seniors on special tenors in the last couple of years. These are time-bound offers; confirm the latest rate card before you act.
• Are SFBs safe? They are scheduled commercial banks regulated by the RBI and covered by DICGC insurance (₹5 lakh cap per depositor per bank). Spread deposits to stay within insurance limits and avoid concentration.
• What about co-operative banks offering 9.5%? Some co-ops do advertise high rates. Do extra diligence and never exceed DICGC limits. If you don’t want to analyse bank health, stick to scheduled commercial banks.
• Corporate FDs are offering 10%+. Should I switch? Higher return, higher risk, no DICGC. If you go this route, use only top-rated issuers and diversify. This isn’t a “bank FD,” so it’s not the same product.
• How do I minimise tax on FD interest? You can’t change the slab, but you can: use 5-year tax-saving FDs for 80C (if you need it), spread interest across FYs by choosing start dates carefully, and consider debt funds or tax-efficient instruments if you’re comfortable with market risk.
• How is “effective yield” different from “interest rate”? Effective yield accounts for compounding and payout frequency. A 9.25% cumulative FD can show an effective yield slightly higher than 9.25%, while a monthly payout option will be lower.

Scenarios - What should you do?

• You’re 62, want income, and found a 9.5% senior FD for 1001 days. Take it if it’s a scheduled commercial bank, but split ₹5-10 lakh chunks across 2-3 banks to stay within DICGC. Choose quarterly payout for smoother cash flow, knowing effective yield will be slightly lower than cumulative.
• You’re 35, chasing max returns. You’ll likely see ~8.5-9.0% at SFBs on special tenors. Don’t overlock; build a ladder: split money into 3-4 FDs across different tenors (e.g., 12, 18, 24, 36 months). Reinvest each maturity at prevailing rates.
• You might need funds early. Avoid long promo tenors. Either go for a lower rate with easy premature withdrawal or split into smaller tickets so you can break just one FD if needed.
• You have ₹20 lakh to place and want simplicity. Use two SFBs for the high-rate slice (within insurance limits) and one large private/PSU bank for stability. Mark maturity reminders 1 week before due date.
• You’re an NRI. Check NRE FD rates specifically. They’re tax-free in India (while NRI), but often lower than domestic promos. If your goal is INR yield maximisation, balance rate with repatriation needs and FX risk.

Your 10-minute decision path

1. Pick your goal: income or growth (cumulative).
2. Decide your max lock-in: 12, 24, or 36 months?
3. Check 3-4 SFB rate cards for special tenors and your profile (senior/non-senior).
4. Shortlist 2 banks that pass your safety check (RBI regulated, DICGC, no recent adverse directives).
5. Compute post-tax return at your slab; if senior, consider quarterly payout if you need cash flow.
6. Split deposits to stay within ₹5 lakh per bank insurance; use multiple receipts.
7. Book online and save the rate-card PDF and acknowledgment for records.

Credibility notes you can rely on

• RBI regulates scheduled commercial banks, including SFBs.
• DICGC insures deposits up to ₹5 lakh per depositor per bank (principal + interest).
• TDS on bank interest: Section 194A thresholds-₹40,000 (general), ₹50,000 (seniors).
• 5-year tax-saving FDs qualify for Section 80C up to ₹1.5 lakh; premature withdrawal not allowed.

If you take one thing away, make it this: find the promo tenor at an RBI-regulated bank, verify the current rate on the official card, and keep each deposit within the DICGC limit. That’s how you grab great rates without losing sleep.