Fixed Deposit (FD) rates in India currently range from around 6.00% to 8.00% p.a.
Depending on the bank, tenure, and deposit amount. Small Finance Banks usually offer the highest returns, while larger banks focus more on stability, branch network, and customer trust.
Below is a quick comparison of some of the most popular FD options available for deposits below âš3 Crore.
| Rank | Bank | 1 Year FD | 3 Year FD | Category |
|---|---|---|---|---|
| 1 | Suryoday Small Finance Bank | 7.25% | 7.25% | High Return |
| 2 | Jana Small Finance Bank | 7.25% | 7.00% | High Return |
| 3 | Ujjivan Small Finance Bank | 7.25% | 7.25% | High Return |
| 4 | RBL Bank | 7.00% | 7.20% | Balanced |
| 5 | Bandhan Bank | 7.00% | 7.00% | Balanced |
| 6 | DCB Bank | 6.90% | 7.00% | Balanced |
| 7 | IDFC FIRST Bank | 6.30% | 7.00% | Private Bank |
| 8 | ICICI Bank | 6.25% | 6.45% | Large Bank |
| 9 | HDFC Bank | 6.25% | 6.45% | Large Bank |
| 10 | State Bank of India (SBI) | 6.25% | 6.30% | Government Bank |
đ Key FD Insights for 2026
- Small Finance Banks are currently offering some of the highest FD interest rates in India
- Large banks generally offer slightly lower returns but have wider branch networks and long-standing customer trust
- For senior citizens, most banks provide an additional 0.25% to 0.75% extra.
- Special FD tenures such as 400 Days, 444 Days, 501 Days, or 567 Days often provide higher rates than standard tenures
- Interest rates vary across banks and can change from time to time
đĄ Smart FD Tip: Don’t choose a bank only because it offers the highest rate. For many investors, a slightly lower FD rate from a well-known bank with good service and easy branch access can be a better long-term experience.
đ Quick Insight: A difference of just 0.50% in FD interest may not look huge today, but on larger deposits and longer tenures it can add thousands of rupees to your maturity amount.
â Safety Note: Eligible bank deposits are protected under the DICGC Deposit Insurance Scheme. Currently, deposits up to âš5 Lakh per depositor per bank are covered under the insurance framework.
Read Below: Public Sector Bank-wise FD Rates âĸ Private Sector Bank FD Rates âĸ Small Finance Bank FD Rates
1. Public Sector Bank FD Rates
Public sector banks generally offer a balance of safety, government ownership and predictable returns. FD interest rates usually range between 3.00% and 6.75% depending on tenure.
| Bank Name | Highest FD Rate (% p.a.) | 1-Year FD Rate (% p.a.) | 3-Year FD Rate (% p.a.) | 5-Year FD Rate (% p.a.) |
|---|---|---|---|---|
| Central Bank of India | 6.75% | 6.40% | 6.25% | 6.25% |
| Bank of India | 6.70% | 6.25% | 6.25% | 6.00% |
| Canara Bank | 6.50% | 6.25% | 6.25% | 6.25% |
| State Bank of India (SBI) | 6.45% | 6.25% | 6.30% | 6.05% |
| Bank of Baroda | 6.45% | 6.10% | 6.25% | 6.30% |
| Punjab National Bank (PNB) | 6.40% | 6.10% | 6.30% | 6.10% |
| Union Bank of India | 6.30% | 6.25% | 6.00% | 5.90% |
| Indian Bank | 6.45% (444 Days) | 6.10% | 6.05% | 6.00% |
| UCO Bank | 6.45% | 6.10% â 6.50% | 6.00% â 6.15% | 6.00% |
| Bank of Maharashtra (BOM) | 6.65% (special schemes) | 6.20% | 5.25% | 5.00% |
| Bandhan Bank | 7.20% per year | 7.00% | 7.00% | 5.85% |
| JK Bank | 7.25% | 6.75% | 6.75% | 6.60% |
| Punjab Sind Bank | 6.85% | 5.85% | 6.00% | 5.85% |
2. Private Sector Bank FD Rates
As of 2026, private sector banks offer FD interest rates of up to 7.20% p.a. for regular customers. Banks such as RBL Bank, Bandhan Bank, and DCB Bank currently offer some of the highest rates among private banks.
The table below compares Fixed Deposit interest rates for deposits below âš3 crore.
| Name | Highest FD Rate (% p.a.) | 1-Year FD Rate (% p.a.) | 3-Year FD Rate (% p.a.) | 5-Year FD Rate (% p.a.) |
|---|---|---|---|---|
| RBL Bank | 7.20% | 7.00% | 7.20% | 6.70% |
| Bandhan Bank | 7.20% | 7.00% | 7.00% | 5.85% |
| DCB Bank | 7.15% | 6.90% | 7.00% | 7.15% |
| IndusInd Bank | 7.00% | 6.75% | 6.90% | 6.65% |
| YES Bank | 7.00% | 6.65% | 7.00% | 6.75% |
| IDFC FIRST Bank | 7.00% | 6.30% | 7.00% | 6.00% |
| Kotak Mahindra Bank | 6.70% | 6.50% | 6.40% | 6.25% |
| ICICI Bank | 6.50% | 6.25% | 6.45% | 6.50% |
| Karnataka Bank | 6.65% | 6.50% | 6.15% | 6.15% |
| HDFC Bank | 6.45% | 6.25% | 6.45% | 6.40% |
| Axis Bank | 6.45% | 6.25% | 6.45% | 6.45% |
| Federal Bank | 6.75% | 6.25% | 6.50% | 6.50% |
| South Indian Bank | 6.60% | 6.35% | 6.20% | 5.70% |
| Tamilnad Mercantile Bank | 7.10% | 6.80% | 6.60% | 6.60% |
3. Small Finance Banks FD Rates
As of 2026, Small Finance Banks are offering some of the highest FD interest rates in India, with rates going up to 8.00% p.a. on select tenures.
The table below compares FD interest rates offered by major Small Finance Banks for deposits below âš3 crore.
| Bank | Highest FD Rate (% p.a.) | 1-Year FD Rate (% p.a.) | 3-Year FD Rate (% p.a.) | 5-Year FD Rate (% p.a.) |
|---|---|---|---|---|
| Suryoday Small Finance Bank | 8.00% (For 5 years) | 7.25% | 7.25% | 8.00% |
| Jana Small Finance Bank | 7.77% | 7.25% | 7.00% â 7.25% | 7.77% (Tax savings) |
| Unity Small Finance Bank | 7.25% (Regular 12 Months) | 7.25% | 6.75% | 6.00% â 6.75% |
| Utkarsh Small Finance Bank | 7.50% | 6.00% | 7.25% | 7.00% |
| Equitas Small Finance Bank | 7.30% per year | 7.00% | 7.00% | 7.00% |
| ESAF Small Finance Bank | 7.60% | 4.75% | 5.75% | 5.75% |
| AU Small Finance Bank | 7.25% | 7.00% | 7.00% | 7.25% |
| Ujjivan Small Finance Bank | 7.45% | 7.25% above 12 month | 7.25% | 7.20% |
| North East Small Finance Bank (Slice) | 7.75% per year | 7.25% (Above 12 month) | 7.00% | 7.00% |
Important: Higher FD rates often come from smaller banks. Before investing, compare both the interest rate and your overall comfort with the bank.
4. Post Office Fixed Deposit Rates (2026)
Post Office Time Deposits remain one of the most trusted fixed-income options in India because they are backed by the Government of India.
| Tenure | Interest Rate |
|---|---|
| 1 Year | 6.9% |
| 2 Years | 7.0% |
| 3 Years | 7.1% |
| 5 Year Tax Saver TD | 7.50% |
The 5-Year Time Deposit currently offers the highest interest rate among standard Post Office FD tenures.
5. Senior Citizen FD Rates
Senior citizens usually receive higher FD interest rates than regular customers.
1. Additional Interest Benefit
- Public Sector Banks â Around 0.50% extra
- Private Sector Banks â Around 0.50% extra
- Small Finance Banks â Around 0.50% to 0.75% extra
2. For Super Senior Citizens (80+ Years)
- Some banks offer an additional benefit above the regular senior citizen rate.
- Public sector banks such as Canara Bank may offer 0.75% to 1.00% extra interest for eligible super senior citizens on select FD tenures.
This extra interest can make a noticeable difference, especially on larger deposits and longer tenures. For example, a senior citizen or super senior citizen investing âš10 lakh in an FD may earn substantially more interest than a regular customer at the same bank.
6. Strategic Interest Planning: Special FD Tenures vs Regular FDs
- Many banks launch special FD schemes with unique tenures such as 400 days, 444 days, or 999 days. These special deposits often offer 0.25% to 0.50% higher interest than regular FD tenures at the same bank.
- Before investing, compare both regular and special FD rates. In some cases, a 444-day FD may offer better returns than a standard 1-year or 2-year FD.
- Most cumulative FDs in India follow quarterly compounding. This means the interest earned every quarter gets added to the deposit amount and starts earning interest again.
- Because of compounding, longer FD tenures can generate noticeably higher maturity values compared to simple interest calculations.
Practical Tip: Always check a bank’s special FD schemes before booking a regular FD. A small increase in interest rate can make a meaningful difference over time.
7. How to Choose the Best Fixed Deposit
Before investing in an FD, consider these important points:
- 1. Check Special FD Schemes – Many banks offer special tenures such as 400, 444, or 777 days with higher interest rates than regular FDs.
- 2. Prefer Cumulative FDs – If you do not need regular income, choose a cumulative FD. The interest gets reinvested and can generate higher maturity returns through compounding.
- 3. Review Premature Withdrawal Rules – Most banks reduce the interest rate by 0.50% to 1.00% if you break the FD before maturity.
- 4. Check Credit Ratings – For NBFC or corporate FDs, prefer highly rated options such as CRISIL AAA or ICRA AAA.
- 5. Don’t Miss Senior Citizen Benefits – Senior citizens usually get an extra 0.50% to 0.75% interest over regular FD rates.
8. How to Book an FD Online
- Step 1: Compare FD rates and choose a suitable bank and tenure.
- Step 2: Use the Easemoney FD Calculator to estimate your maturity amount.
- Step 3: Log in to Internet Banking or complete Video KYC if you are a new customer.
- Step 4: Select “Open Fixed Deposit”, enter the amount and tenure, and choose cumulative or non-cumulative FD.
- Step 5: Transfer funds, confirm the request through OTP, and download the FD receipt for future reference.
Frequently Asked Questions
Which bank offers the highest FD interest rate in 2026?
Small Finance Banks (like Utkarsh and Suryoday) lead the 2026 market, offering peak interest yields up to 8.00% to 8.25% p.a. on specific medium-term tenures.
Is it safe to park money in Small Finance Banks?
Yes. Small Finance Banks are fully regulated by the RBI. Your deposits are legally insured up to âš5 Lakhs by the DICGC, matching major public bank security rules.
Do senior citizens get higher FD interest rates?
Yes. Most banks offer an extra 0.50% interest, while some banks provide even higher benefits for super senior citizens aged 80 years and above.
What is the minimum lock-in tenure for an Indian bank FD?
The minimum statutory tenure for a fixed deposit in India is 7 days. You can choose any duration stretching from 7 days up to 10 full years.
At what limit does a bank deduct TDS on fixed deposits?
Banks deduct 10% TDS if your annual interest crosses âš40,000 (âš50,000 for senior citizens). Avoid this legally by submitting Form 15G or 15H before deductions trigger.
Is FD interest taxable?
Yes. FD interest is taxable according to your income tax slab and may also attract TDS if it crosses the prescribed limit.
Which FD tenure usually gives the highest interest rate?
In many banks, special tenures such as 400 days, 444 days, or 555 days often offer higher rates than regular 1-year or 2-year FDs.
How does the bank calculate interest on cumulative fixed deposits?
Indian commercial banks compute cumulative fixed deposit returns using a quarterly compounding schedule. Every three months, earned interest is automatically added back to your principal balance.
Are FD rates expected to fall?
FD rates often move in line with RBI monetary policy. Further repo rate reductions may lead some banks to reduce FD rates.
Does a repo rate cut by the RBI reduce my active FD rate?
No. Your interest rate is locked by a binding contract at booking. Your return remains entirely guaranteed and unchanged for the full tenure regardless of market shifts.