FD interest rate up to 8.6% for general citizens for 5 year tenure; Invest now to save income tax for FY 2024-25

General citizens who still want to save income tax for FY 2024-25 can still do so under Section 80C in the old tax regime by investing in five year term fixed deposits (FD). General citizens (under 60 years of age) can get up to 8.6% interest on FDs of worth below Rs 3 crore in various banks.


Read below to know more about the list of banks offering such high interest rates on tax saver FDs:

Suryoday Small Finance Bank FD rate

Suryoday Small Finance Bank is offering 8.6%% interest rate on its FDs maturing in 5 years.

Jana Small Finance Bank FD rate

Jana Small Finance Bank is offering 8.2%% interest rate on its FDs maturing in 5 years.

Unity Small Finance Bank FD rate

Unity Small Finance Bank is offering 8.15% interest rate on its FDs maturing in 5 years.

NorthEast Small Finance Bank FD rate

NorthEast Small Finance Bank is offering 8% interest rate on its FD maturing in 5 years.

Bank	Interest rate
Suryoday Small Finance Bank	8.6%
Jana Small Finance Bank	8.2%
Unity Small Finance Bank	8.15%
NorthEast Small Finance Bank	8%
Utkarsh Small Finance Bank	7.75%
AU Small Finance Bank	7.25%
Equitas Small Finance Bank	7.25%
Ujjivan Small Finance Bank	7.2%

Source: paisabazaar.com as of March 26, 2025

Utkarsh Small Finance Bank FD rate

Utkarsh Small Finance Bank is offering 7.75% interest rate on its FD maturing in 5 years.

AU Small Finance Bank FD rate

AU Small Finance Bank is offering a 7.25% interest rate on its FD maturing in 5 years.

Equitas Small Finance Bank FD rate

Equitas Small Finance Bank is offering a 7.25% interest rate on its FD maturing in 5 years.

Ujjivan Small Finance Bank FD rate

Ujjivan Small Finance Bank is offering a 7.2% interest rate on its FD maturing in 5 years.

Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen circumstances.

How does tax saving FDs work?

When you invest in a tax saving FD, you are eligible to claim the principal component as income tax deduction under Section 80C, if you choose the old tax regime. But this does not mean that when the FD matures, it is tax free. It means, when the said FD matures you need to pay income tax on the interest earned from this FD by declaring this in your income tax return (ITR). Also note that once you claim the Section 80C tax deduction for this FD, you can’t claim this again in the subsequent year unless you again invest in tax-savings FD. Under Section 80C you can claim a maximum amount of Rs 1.5 lakh in a financial year, if you have made Rs 1.5 lakh worth of investments in the eligible instruments.