Want more money? Fixed deposits work. You earn more than a savings account. Your money stays safe. Finding great rates matters. Rates differ by bank. Some give 6%. Others give 7%. That extra 1% adds up.
This guide shows you the 5 banks offering the best fixed deposit rates right now.
Why Get a Fixed Deposit for 1-2 Years?
Why choose a fixed deposit? Banks pay more than savings. Savings give you 3-4%. Fixed deposits give 6-7%. That’s nearly double.
Why pick 1-2 years? Long deposits lock your money away. Short deposits give low interest. One to two years is just right. Your cash grows well. You get it back sooner. You can put it somewhere else when ready.
Now is a good time. Banks are offering great fixed deposit rates today.
Also Read: Top 7 Govt Banks for Best Fixed Deposit Interest Rates in 2025
Top 5 Banks Offering Best Fixed Deposit Rates
1. IDFC FIRST Bank – Leader at 7.00% for Two Years
IDFC FIRST Bank leads the pack. Two-year deposits earn 7.00%. One year earns 6.30%. If you’re over 60, add 0.50% more.
Do the math. Invest ₹1 lakh for two years at 7%. You make ₹14,490 in interest. Real money.
What’s good about IDFC FIRST Bank FD:
- Top rate: 7.00% for 24 months
- Pay monthly, quarterly, or yearly
- Safe rating: CRISIL AA+
- Start with just ₹5,000
- Open fast online
2. IndusInd Bank – Strong at 6.90% for One to Two Years
IndusInd Bank gives solid returns. One year: 6.75%. One to two years: 6.90%. Seniors earn 7.40%.
Why consider IndusInd? Opening is simple. It’s quick. You can pull money early if needed. Their app works well.
Why pick IndusInd:
- Good rate: 6.90% for 12-24 months
- Fast online signup
- Early withdrawal okay
- Branches everywhere
Also Read: Still Ignoring FDs? 10 Hidden Benefits of Fixed Deposit in a World Obsessed With Mutual Funds
3. Shriram Finance – Highest at 7.25% for Two Years
Shriram Finance beats most. It’s not a bank. It’s a finance company. But rates are better. One year: 7.00%. Two years: 7.25%. Seniors: 7.75%.
Why does 7.25% matter? It beats banks. Your money grows more. That’s why people like them.
Why pick Shriram Finance FD:
- Best rate: 7.25% for 24 months
- Strong rating: ICRA AA+
- Women get 0.05% extra
- 12-60 month choices
Key note: Finance companies differ from banks. They don’t have deposit insurance. But they’re strong companies with good ratings. Check first before investing.
4. Axis Bank – Steady at 6.60% for One to Two Years
Axis Bank is major. They offer 6.60% for one to two years. Seniors get 7.35%.
Why trust Axis? They’re stable. They’re well-known. Service is good. The mobile app is easy.
Why pick Axis:
- Solid rate: 6.60% for 12-24 months
- Great app
- Phone help always available
- Quick to open
5. ICICI Bank – Reliable at 6.60% for One to Two Years
ICICI Bank is number two in India. They offer fixed deposit rates of 6.60% for one to two years. Seniors earn 7.10%.
What makes ICICI good? Everything is clear. No tricks. Rates are honest. The process is simple. Their calculator shows what you’ll earn.
Why pick ICICI:
- Fair rate: 6.60% for 12-24 months
- Best app
- No hidden costs
- Quick online
Also Read: Looking for Monthly Income? Try Post Office Monthly Income Scheme (Calculator Inside)
Best Fixed Deposit Rates at a Glance
| Bank Name | One Year | Two Years | Seniors Get Extra |
|---|---|---|---|
| IDFC FIRST | 6.30% | 7.00% | +0.50% |
| IndusInd | 6.75% | 6.90% | +0.50% |
| Shriram Finance | 7.00% | 7.25% | +0.50% |
| Axis Bank | 6.60% | 6.60% | +0.75% |
| ICICI Bank | 6.25% | 6.60% | +0.50% |
How to Pick the Right Bank
- Step 1: Look at rates. Don’t stop at one bank. Check them all. Half a percent more means ₹5,000 extra on ₹10 lakh.
- Step 2: Check if it’s safe. Look for CRISIL AAA or AA+. Your money’s safety comes first always.
- Step 3: Look at exit rules. Some banks charge heavy fees if you take money out early. Choose ones that let you out easily.
- Step 4: Do the math. Use their calculator. Put in your amount. See what you get back.
- Step 5: Pick payout style. Want money each month? Choose monthly. Want it all to grow? Choose yearly.
Things You Should Know
- About taxes: Your interest gets taxed normally. But if you’re over 60, you get ₹50,000 tax break yearly.
- About inflation: Rates of 6-7% beat inflation. Your cash grows in real value, but slowly.
- About safety: Banks protect ₹5 lakh by law. Finance companies don’t. Check their ratings.
- About the future: The RBI may lower rates soon. Today’s 7% might be lower later. Lock in now.
Smart Investing Tips
- Build a ladder: Open deposits that finish at different times. You get money when you need it. You keep earning.
- Spread across banks: Use 2-3 banks. You stay safe. You get competitive rates.
- Reinvest fast: When deposits end, put money back quickly. Keep earning.
- Watch for changes: Banks change rates monthly. Stay on top of things.
Final Verdict
- Best overall: IDFC FIRST at 7.00% for two years wins. This is the best fixed deposit rates for 1-2 years in India.
- Best backup: Shriram at 7.25% for two years. Just check insurance limits.
- Best for safety: Axis or ICICI at 6.60%. You get stable service.
- Best mix: IndusInd at 6.90%. Good rate. Easy process.
Pick based on what matters:
- Want top fixed deposit rates? Pick Shriram.
- Want most safety? Pick Axis or ICICI.
- Want best deal overall? Pick IDFC FIRST.
Start Now
- If you are looking for best fixed deposit rates for 1-2 years in India, Don’t delay. Rates change. Lock in good rates today.
- Check multiple banks. Be smart. Decide well.
- One to two years works for medium goals. Begin now.
- Today’s top rates hit 7.25%. That’s excellent. Get them while they exist.
