Which Bank Has the Highest FD Interest Rates?

Small Finance Banks and NBFCs offer the highest FD interest rates in India, going up to 9.10% p.a. for general citizens and 9.35% p.a. for senior citizens. Among scheduled banks, Bandhan Bank leads with up to 7.45% p.a. for general citizens and 7.95% p.a. for senior citizens. Post Office FD rates go up to 7.50% p.a.

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Top Banks Offering the Highest FD Interest Rate

The table below shows the best FD rates for general and senior citizens on amounts below ₹3 crore:

Top Banks FD Rates	General citizens (% p.a.)	Senior citizens (% p.a.)
Muthoot Capital FD Interest Rates	9.10% p.a.	9.35% p.a.
Suryoday Small Finance Bank Interest Rate	8.10% p.a.	8.25% p.a.
Jana Small Finance Bank Interest Rate	8.00% p.a.	8.30% p.a.
Shriram Finance FD Interest Rates	7.50% p.a.	8.00% p.a.
Bandhan Bank FD Interest Rates	7.45% p.a.	7.95% p.a.
Bajaj Finance FD Interest Rates	7.40% p.a.	7.75% p.a.
YES Bank FD Interest Rates	7.25% p.a.	7.75% p.a.
Capital Small Finance Bank FD Rates	7.25% p.a.	7.75% p.a.
RBL Bank FD Interest Rates	7.20% p.a.	7.7hai0% p.a.
ICICI Bank Interest Rate	6.50% p.a.	7.10% p.a.

*Best FD rates by top banks as of July 2026.

Highest Public Sector Banks FD Rates 2026

The top public sector banks offering the highest fixed deposit rate for general and senior citizens for amounts below ₹3 crore are

Top Public Bank FD Rates	General Citizens (% p.a.)	Senior Citizens (% p.a.)
Punjab & Sind Bank Interest Rate	6.85% p.a.	7.35% p.a.
Bank of Baroda Interest Rate	6.75% p.a.	7.25% p.a.
Bank of India Interest Rates	6.70% p.a.	7.45% p.a.
Union Bank of India Interest Rate	6.65% p.a.	7.15% p.a.
SBI FD Interest Rates	6.45% p.a.	7.05% p.a.

*FD interest rates by public banks as of July 2026.

Highest Fixed Deposit Rates By Private Sector Banks

Below are the top private sector banks offering the highest FD interest rates for general and senior citizens for amounts below ₹3 crores:

Top Private Bank FD Rates	General Citizens (% p.a.)	Senior Citizens (% p.a.)
Bandhan Bank FD Interest Rates	7.45% p.a.	7.95% p.a.
IDFC FIRST Bank FD interest rates	7.35% p.a.	7.60% p.a.
City Union Bank FD interest rates	7.25% p.a.	7.55% p.a.
IndusInd Bank FD Interest Rates	7.00% p.a.	7.75% p.a.
HDFC Bank FD interest rates	6.50% p.a.	7.00% p.a.

*FD interest rates by private banks as of July 2026.

Top SFBs Offering the Highest FD Rates

Small Finance Banks consistently offer higher interest rates than public and private sector banks. Here are the top SFBs by FD rate:

Top SFBs	General Citizens (% p.a.)	Senior Citizens (% p.a.)
Utkarsh Small Finance Bank Interest Rates	8.10% p.a.	8.25% p.a.
Ujjivan Small Finance Bank Interest Rates	7.80% p.a.	8.30% p.a.
Slice Small Finance Bank Interest Rates	7.75% p.a.	7.75% p.a.
ESAF Small Finance Bank Interest Rates	7.50% p.a.	8.00% p.a.
Equitas Small Finance Bank Interest Rates	7.75% p.a.	8.25% p.a.

*FD interest rates by SFBs as of July 2026.

Why Invest in Fixed Deposits (FDs)?

A fixed deposit is a safe and dependable savings option with several key features:

Safe investment option: Your principal amount is locked in a bank or an NBFC, and returns are predetermined, offering the security of your funds.
Extra interest rates for senior citizens: Many institutions offer higher interest rates to seniors, helping them earn more.
Guaranteed returns: Unlike market-linked investments, FD returns are fixed and assured at the time of deposit.
Preserving and growing savings: FDs help safeguard your funds while earning interest, balancing safety and growth.
Flexible tenure: You can choose the duration, from short-term to long-term, based on your financial goals.
Higher interest rates: Specifically, in small finance banks and NBFCs, you often find the highest FD interest rates for general and senior citizens.

How to Open a Fixed Deposit Account?

An FD account can be opened in either a traditional way or digitally.

Online Process

Step 1: Go to the respective bank’s official website or download its application.

Step 2: Log in using your login credentials.

Step 3: Look for Fixed Deposit and click on ‘Open an FD’.

Step 4: Submit your personal details, along with the details about the type of FD, amount, tenure, and interest payout.

Step 5: Upload the KYC documents.

Step 6: Review the entered details.

Step 7: Deposit the amount via net banking, UPI, or other methods.

Step 8: Once your profile is verified, the FD account will be opened.

Offline Process:

Step 1: Go to the nearest branch of the bank of your choice.

Step 2: Obtain and fill out the FD form.

Step 3: Submit the form along with the appropriate KYC documents.

Step 4: Deposit the amount via cheque, DD, cash, or other methods.

Step 5: Once your profile is verified, the FD account will be opened.

Eligibility to Open a Fixed Deposit Account

To open a Fixed Deposit (FD) account, the following categories are eligible:

Resident Individuals
Hindu Undivided Families (HUFs)
Sole Proprietorship Firms
Partnership Firms
Limited Companies
Trust Accounts
Other eligible entities as per bank policies

Documents Required to Open Fixed Deposits

The general documents required to open an FD account include:

Aadhaar Card
PAN Card
Driver’s License
Passport
Recent coloured passport-sized photographs
KYC (Know Your Customer) verification documents as mandated by the bank

Conclusion

Small finance banks and NBFCs consistently offer better FD rates than large public and private sector banks. Before you invest, compare current rates across banks and weigh the headline rate against tenure, bank stability, and premature withdrawal terms. Booking early also helps, since locking in at a competitive rate compounds over time. For those looking to reduce their tax liability, a 5-year Tax Saver FD offers guaranteed returns alongside a deduction of up to ₹1.5 lakh under Section 80C.

FAQs

1. What is the highest interest rate on FD today?

Bandhan Bank offers the highest FD interest rates of up to 7.45% p.a., and under NBFCs, Muthoot offers the highest FD rate of up to 9.10% p.a. for general customers and 9.35% p.a. for senior citizens.
2. Whose FD interest is the highest?

Bandhan Bank, one of the top private-sector banks in India, offers the highest FD interest rates of up to 7.45% p.a. for general citizens and 7.95% p.a. for senior citizens. Whereas, Muthoot Capital, one of the top NBFCs, provides up to 9.10% p.a. for general and 9.35% p.a. for senior citizens.

3. Which bank has the highest FD rate now?

Top banks, SFBs with the highest FD interest rate are:

Bank Name	Highest Rate for General citizens	3 -Year Rate
Muthoot Capital FD Interest Rates	9.10% p.a.	9.35% p.a.
Suryoday Small Finance Bank Interest Rate	8.10% p.a.	8.25% p.a.
Jana Small Finance Bank Interest Rate	8.00% p.a.	8.30% p.a.
Shriram Finance FD Interest Rates	7.50% p.a.	8.00% p.a.
Bandhan Bank FD Interest Rates	7.45% p.a.	7.95% p.a.

4. Do all banks offering high FD rates also give compound interest on FD?

Many banks allow interest on FDs to be compounded quarterly or annually; you should check with the bank for their specific compounding frequency and whether it applies to the scheme you choose.
5. What should I check before investing in an FD to ensure I am getting the best deal from banks offering the highest interest rates?

Check the FD rates for senior citizens and general citizens, compounding frequency, premature withdrawal terms, whether the rate is for a specific tenure, whether there are any bonuses or special conditions, and ensure you go through the full terms & conditions.