Repo Rate Cut Triggers FD Interest Drop, But Post Office Still Offers Highest 7.5% Return

Indian banks have reduced interest rates on fixed deposits after the Reserve Bank of India announced a major 1% cut in the repo rate this year. Despite this decline, fixed deposits remain one of the safest and most appealing investment choices for many individuals. As a result, investors continue to search for institutions offering the highest FD returns. To help with that, we have compiled key options available today. The Post Office currently provides the highest interest rate of 7.5% on its five-year time deposit scheme, and this rate applies uniformly to customers of all age groups.

No major commercial bank in the country presently offers a 7.5% interest rate to regular customers on a five-year FD. Below is a table comparing the latest rates. Among major banks, the State Bank of India offers 6.05% for general customers and 7.05% for senior citizens. HDFC Bank provides 6.40% to regular customers and 6.90% to seniors. Punjab National Bank offers 6.25% to general customers, 6.75% to senior citizens, and up to 7.05% for super senior citizens above 80. For low-risk investors seeking stable returns, the Post Office’s five-year time deposit remains highly attractive due to its superior 7.5% rate.

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5-Year Fixed Deposit Interest Rates (Average)