The Reserve Bank of India on Wednesday, October 1, kept the repo rate unchanged at 5.5% and retained the neutral stance. This means that the Standing Deposit Facility (SDF) rate remains at 5.25%, and the Marginal Standing Facility (MSF) rate and the bank rate would be the same as before at 5.75%.
Top FD interest rates in October
Here are the top 5 public, private and small finance banks offering the highest FD interest rates in October 2025:
Public sector banks
| Bank Name | Highest FD Rate (% p.a.) | 1-Year FD Rate (% p.a.) | 5-Year FD Rate (% p.a.) |
|---|---|---|---|
| Indian Overseas Bank | 6.75 | 6.60 | 6.20 |
| Bank of Maharashtra | 6.70 | 6.20 | 6.10 |
| Indian Bank | 6.70 | 6.10 | 6.00 |
| Punjab & Sind Bank | 6.70 | 6.00 | 6.10 |
| UCO Bank | 6.70 | 6.25 | 6.10 |
Source: Bank websites
Private sector banks
| Bank Name | Highest FD Rate (% p.a.) | 1-Year FD Rate (% p.a.) | 5-Year FD Rate (% p.a.) |
|---|---|---|---|
| Jammu & Kashmir Bank | 7.10 | 6.60 | 6.50 |
| Nainital Bank | 7.05 | 6.50 | 5.75 |
| Tamilnad Mercantile Bank | 7.05 | 6.80 | 6.25 |
| IDFC FIRST Bank | 7.00 | 6.30 | 6.60 |
| Yes Bank | 7.00 | 6.65 | 6.75 |
Source: Bank websites
Small finance banks
| Bank Name | Highest FD Rate (% p.a.) | 1-Year FD Rate (% p.a.) | 5-Year FD Rate (% p.a.) |
|---|---|---|---|
| Suryoday Small Finance Bank | 8.20 | 7.40 | 8.20 |
| Jana Small Finance Bank | 8.00 | 7.25 | 8.00 |
| Slice Small Finance Bank | 7.75 | 6.25 | 7.00 |
| Utkarsh Small Finance Bank | 7.65 | 6.00 | 7.25 |
| ESAF Small Finance Bank | 7.60 | 4.75 | 5.75 |
Source: Bank websites
RBI repo rate cuts and FD interest rates
The central bank’s Monetary Policy Committee (MPC) meeting, held between September 29 and October 1, concluded today. The MPC unanimously voted to keep the policy repo rate unchanged at 5.5%.
In 2025, the RBI MPC has frontloaded three key interest (repo) rate cuts, slashing it by 100 basis points (bps) with a 25 bps rate cut in February, a 25 bps rate cut in April and a 50 bps cut in June. However, the central bank paused the rate cuts in August, making this the second consecutive meeting when the MPC has opted for the status quo.
A lower repo rate cut means that the bank can borrow from the RBI at a lower rate, which in turn means lower borrowing rates for customers. However, with a low rate, the banks no longer need to offer high-interest fixed deposits. This is why a repo rate cut usually means lower FD interest rates.
FD investors, after seeing a 100 bps rate cut this year, have been waiting for a higher repo rate in the hope of better FD interest rates. However, the RBI has kept the repo rate unchanged, which means that banks aren’t likely to increase their FD rates anytime soon.