FD Interest Rates in India 2026

What Are Fixed Deposit Interest Rates?  

When you book a fixed deposit for a certain period, the bank guarantees an interest based on the applicable rate slab. This FD interest rate depends on two factors: how much you invest and for how long. Hence, your FD interest income at maturity is determined by a combination of the amount invested, the tenure, and the type of deposit. Besides, the compounding frequency and the type of payout you choose also play crucial roles. 

Quarterly compounding is the common method of interest calculation in Indian banks. Along with the compounding frequency, returns also depend on whether your FD is cumulative or non-cumulative. In a cumulative deposit, interest compounds within the deposit and is paid at maturity. However, if you choose a non-cumulative FD, interest is paid periodically, reducing compounding.

FDs attract investors seeking safe options, especially during uncertain market conditions. In addition to offering secure and time-tested savings options, FDs also offer features like a credit card against FD and loans on FD. Non-banking financial companies (NBFCs) and other financial entities also offer FDs. For instance, India Post offers separate post office FD rates of up to 7.50% available at all post offices.

How FD interest rates are calculated

Banks usually show you interest rates per annum at the time of booking an FD. However, most banks in India calculate interest quarterly. To do this, banks divide the annual rate into four quarters and compute accordingly. That means compounding-based growth of your deposit happens quarterly, not annually. All in all, your ROI depends on four main factors: the deposit amount, applicable interest rate, tenure, and payout frequency.

Key Factors Affecting FD Interest Rates

While economic factors like the RBI’s repo rate directly influence FD rates, other factors like deposit amount and age affect rates differently for each investor. Here are the most important factors impacting fixed deposit interest rates.

• Repo Rate: RBI’s repo rate is the most important driver of FD rates. When the RBI raises repo rates, banks, too, increase FD rates and vice versa.
• Economic Conditions: In a global, digital-powered economy, factors like inflation, liquidity in the banking industry, and GDP growth impact FD rates.
• Deposit Tenure: Every bank offers a defined rate for a specific tenure. And your chosen time period plays a notable role in how much return you would get. Longer tenures usually provide higher returns.
• Deposit Amount: Larger deposits often get higher rates and smaller savings. These are commonly known as "bulk deposits" and have special interest rates.
• Depositor’s Age: Most banks offer higher rates to senior and super-senior citizens. This is a common benefit for those over sixty. Depositors below 60 get “general public” rates.
• Type of Bank: Small finance or newer banks often offer higher interest to attract customers. Among larger banks, private banks usually offer higher rates than public sector banks.

FD Interest Rates Today: Highest Returns

Here’s a snapshot of the highest FD rates available across private banks, public banks, and NBFCs.

*Highest FD rates by banks and NBFCs as of May 2026.

Top 10 Banks Offering the Highest FD Rates in India

Below are the fixed deposit rates offered by leading public and private sector banks in India.

Disclaimer: FD interest rates are sorted from highest to lowest. Rates shown are indicative and subject to change. This table is not a ranking of banks and is for informational purposes only. Top banks' FD rates as of May 2026

FD Rates of Top Public Sector Banks in India

Here is a list of the best fixed deposit interest rates in India offered by Public Sector Banks for deposits of up to ₹3 crores:

Disclaimer: Public sector banks here are listed based on their size. This order does not indicate performance, ranking, or recommendation. Top Public sector banks' FD rates as of May, 2026

FD Rates of Top Private Sector Banks

Here is a list of the best fixed deposit interest rates in India offered by Private Sector Banks for deposits of up to ₹3 crores:

Disclaimer: The private sector banks listed here are ranked by size, from largest to smallest. This order does not indicate performance, ranking, or recommendation. Top Private sector banks' FD rates as of May, 2026

FD Rates Offered by SFBs, Foreign Banks, & NBFCs

Small finance banks (SFBs) and non-banking financial companies (NBFCs) offer higher rates than larger banks. Below are the highest FD return rates available.

Disclaimer: FD interest rates are sorted from highest to lowest. Rates shown are indicative and subject to change. This table is not a ranking of NBFCs and small finance banks and is for informational purposes only. NBFCS, SBFCs and foreign bank FD rates as of May 2026  

Fixed Deposit Rates for Senior Citizens  

Senior citizens prefer fixed deposits more than any other age group due to various reasons. Firstly, they tend to prefer safe savings and investment options with guaranteed returns. This aspect is important because many retirees, especially those with larger deposits, use FDs as their main source of regular income. Besides, senior citizen FD rates are higher than standard rates because they receive preferential interest rates. Plus, FDs are easy to understand, and you can invest even if you are not savvy about the latest stock market trends. Currently, the highest rate available for senior citizens is up to 7.75% p.a. from Bandhan Bank and up to 9.35% p.a. from Muthoot Capital. 

Top Banks & NBFCs Offering the Highest FD Rates in India

Banks that offer the highest interest rates are also the most reliable institutions in India, trusted by customers looking for safe savings options. Here’s what you might want to know about these banks and their FD interest rates.

State Bank of India

SBI is India's largest public sector bank. State Bank of India FD interest rates up to 6.45% p.a. for general citizens. You get to choose flexible tenures from 7 days to 10 years, with the assurance of India's top government bank.

Bank of Baroda

BoB is a leading public sector bank. Current BOB FD interest rates are up to 6.45% p.a. for select tenures. Senior citizens get preferential rates. It offers products like BOB 360 short-term deposits.

HDFC Bank

Top private sector bank with HDFC FD interest rates up to 6.50% p.a. for the general public and 7.00% p.a. for senior citizens. HDFC Bank offers unique and attractive deposit products, such as the HealthCover FD.

Axis Bank

Axis Bank is India’s third-largest private sector player, offering competitive Axis Bank FD interest rates up to 6.45% p.a. for regular deposits and 7.20% p.a. for senior deposits. The bank offers popular non-callable products, such as Fixed Deposit Plus.

ICICI Bank

ICICI is the second largest private sector bank with competitive ICICI FD interest rates up to 6.50% p.a. The bank creates fixed deposit products focused on seniors, like the Golden Years FD.

Bajaj Finance

Bajaj Finance is a leading, CRISIL AAA-rated NBFC offering high Bajaj Finance FD interest rates up to 7.40% p.a. for general customers and 7.75% p.a. for senior citizens.

Shivalik Small Finance Bank

One of the leading small finance banks that offers the highest Shivalik Small FD interest rates in the sector. The SFB has partnered with BFSI players like PNB MetLife.

Shriram Finance

Shriram Finance FD interest rates are trusted among NBFC offerings, with rates up to 7.60% p.a. for general and 8.10% for seniors. Shriram Finance has recently announced a preferential share issue with Japan’s MUFG Bank.

Slice Small Finance Bank

Slice is a digital-first small finance bank formerly known as North-East Small Finance Bank. Slice Bank FD interest rates are available through easy app-based booking for 7-day to 5-year tenures.

Suryoday Small Finance Bank

Suryoday Bank FD interest rates are one of the most competitive in the small finance bank sector. Currently, it offers FD rates up to 8.10% p.a. for general and 8.25% p.a. for senior citizens.

Rates Comparison by Category: Short-Term, Medium-Term, & Long-Term FDs

*FD rates as of May, 2026

Short-Term FD Rates (7 days to 1 year) 

*FD interest rates as of May, 2026

Medium-Term FD Rates (1 to 3 years)

*FD interest rates as of May, 2026

Long-Term FD Rates (3 to 10 years)

*FD interest rates as of May, 2026

Fixed Deposit Calculator

An FD calculator enables you to make investment decisions based on your financial goals. Using our FD calculator, you can decide how much to invest and for how long. You may also like to use this calculator to estimate your returns once you have decided how much you want to invest. Just select your investment amount, the expected interest rate, and the tenure. The calculator will give you a breakdown comprising the interest earned and the total maturity amount.

Illustration - Maturity Amount Calculation 

Here’s an example of a depositor who puts ₹5,00,000 in an FD for 5 years. The depositor's interest rate is 6.5%.

• Investment amount: ₹5,00,000
• Deposit tenure: 5 years
• Interest rate: 6.5% p.a.
• Compounding: Annually (cumulative)

Here’s how the investment will grow after 5 years:

• Total investment: ₹5,00,000
• Total interest earned: ₹1,85,530
• Maturity value after 5 years: ₹6,85,530

Types of Fixed Deposits of India 

Fixed deposits are a popular savings product across various demographics and investor profiles in India. Despite being a traditional savings product, FDs have remained popular in today’s digital-first financial market thanks to their diversity and evolution over the years. FDs cater to the unique needs of risk-averse investors through a wide variety of options. Here are the main FD types available in India in 2026.

1. Cumulative FDs

   In cumulative fixed deposits, your earned interest compounds, and the total interest is paid at maturity. The compounded interest is reinvested. This type of deposit works best when you can maintain the investment duration and withdraw after maturity. Suitable for goal-based investments like kids’ education or maintaining an emergency fund.

2. Non-cumulative FDs

   Your interest income from non-cumulative FDs is paid at a specific frequency. It could be monthly, quarterly, or annually, based on the type of specific FD product you choose. Here, the interest earned doesn’t compound. Non-cumulative FDs are common across major banks in India.

3. Tax-Saver FDs

   These deposits are designed to help depositors save on taxes. You get deductions under Section 80C, with a maximum annual cap of ₹1,50,000. Tax-savings FDs have a 5-year lock-in period and usually offer higher interest rates than other FDs.

4. NRE/NRO FDs

   Most banks in India have FD products specifically designed for non-resident Indians (NRIs). These products are usually available through two types of bank accounts: NRO account (non-resident ordinary) and NRE account (non-resident external). NRO rates are usually similar to domestic FD rates. But most banks offer separate rate slabs for NRE FDs.

5. Flexi Deposits

   As the name suggests, these FDs are designed to offer flexibility. With features like sweep-in and sweep-out, flexi fixed deposits automate savings and investment. You can set up these features to automatically transfer money to your FD or withdraw whenever you need liquidity options.

Who Should Invest in FDs?

Due to their diversity and guaranteed returns, FDs suit most investor types. However, fixed deposits are most suitable for risk-averse investors who don't want to deal with the complexity of financial markets.

• Risk-Averse Investors: FDs are ideal if you dislike market risks. Your principal amount stays safe regardless of market swings.
• Retirement Planners: People looking for safe retirement savings products could benefit from FDs' safety. You get a steady, guaranteed income stream and invest for the long term to earn higher rates.
• Short-Term Financial Planners: If you’re saving for a wedding, a vacation, or a major purchase, FDs provide a certain amount on a fixed date.
• Portfolio Diversifiers: You can also use FDs to balance your riskier investments, like mutual funds. Fixed deposits provide stability to your overall investments.
• Emergency Fund Builders: FDs are a secure place to park your "rainy day" fund. The money is easily accessible when you need it.
• Traditional Savings Customers: If you’re not savvy about investing in stocks and other complex financial instruments, FDs could give you assured returns while keeping things simple for you. All you need to understand is the applicable interest rate and the tenure.

How FDs Support Your Financial Goals

Fixed deposits can work as useful tools for achieving your financial goals, especially if you are planning long-term investments. If you have capital you want to invest and grow, FDs can help you achieve guaranteed, steady growth. It could be putting your money in a product to generate a fund for future needs, like your child’s education, buying a house, or even adding to your retirement corpus. However, it’s not just long-term financial goals that FDs support. You can also invest in these guaranteed-return products as a means to achieve your short- or medium-term financial milestones. Goals like saving for a wedding or buying a new car can be well supported by FD investments.

How FDs Suit Different Risk Profiles of Investors

Fixed Deposits can become a safe addition to almost any investment plan. However, their value changes based on your comfort with risk.

• Risk-Averse Investors: Fixed deposits are perfect for investors who don’t want to deal with any market-related risks. Investors of this profile value safety above all else. FDs ensure their money is protected from market crashes and that they receive a fixed, steady return.
• Moderate-Risk Investors: This category of investors can use FDs to balance their portfolio. Fixed deposits could work perfectly to provide a stable core for your wealth. Guaranteed returns offset the risks of their other investments, creating a helpful safety net.
• High-Risk Investors: FDs are not for you if you are a high-risk investor and like to dwell on the highs or markets while actively managing your portfolio. This investor category seeks much higher rewards over time. So, FDs are unlikely to meet your expectations.

Features and Benefits of FDs

Whether it’s the safety of guaranteed returns, flexibility of auto-sweep, or tax benefits, FDs can benefit different investors in different ways. Here's an overview of the key benefits of investing in fixed deposits.

• Guaranteed Returns:Fixed Deposits provide you with secure, predictable, and guaranteed returns, which are unaffected and untouched by market fluctuations.
• Flexibility in Tenure: The FD offers tenure terms ranging from 7 days to 10 years, customised to your financial goals and repayment capacity.
• Tax-Saving Fixed Deposit: Most FDs come with lock-in periods and deductions of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
• Sweep-in / Sweep-out: A sweep-in / sweep-out feature automates your deposits. Your excess funds are automatically transferred from a savings account to an FD, and when your savings account balance falls below the set threshold, funds from the FD are transferred back.
• Senior Citizen Benefits: An additional benefit is usually an increase of 0.5% to 0.75% on the standard interest rate given to senior citizens (usually above 60 years) who invest in an FD.
• Loan Against Fixed Deposit: An FD is a reliable option in case of emergencies. It is quite simple to take a loan on a fixed deposit. You can borrow up to 90% to 95% of the amount of the fixed deposit, depending on the bank.
• Credit Card Against FD: These are secured credit cards where your fixed deposit serves as collateral. Most banks offer a credit card against an FD, where you can use 80-90% of your deposit value as a secure credit.

How to Open a Fixed Deposit 

Booking an FD is quick and hassle-free. You just need an active account with the bank or NBFC where you want to open a deposit account. You can choose an online or offline method that suits you and book an FD instantly.

Online FD Booking (Netbanking/App)

• Internet/Mobile Banking: Log in to your internet or mobile banking app.
• Deposits: Head to the "Deposits" Select the option to open a new Fixed Deposit.
• Amount & tenure: Choose your investment amount and the tenure.
• Payout frequency: Select how you want to receive your interest payments.
• Submit: Review all the details, then click the submit button.
• Get Receipt: Download your digital FD receipt immediately after booking.

Offline Method (Branch Banking)

• Branch visit: Visit your nearest bank branch during working hours.
• FD Form: Ask a bank official for an FD application form and fill in the deposit amount and your chosen tenure.
• Authorize: Sign the form to authorize the transfer from your account.
• Submit: Submit the completed form to the bank executive and wait for the bank to process your request.
• FD Receipt: Collect your physical FD booking receipt from the counter.

Documents Required to Open an FD

Banks and NBFCs need certain documents to verify your identity and book your FD. If you are an existing customer, the process is faster.

• Identity Proof: A PAN card is mandatory for all investors. You can also use your Aadhaar card or Passport.
• Address Proof: Use documents like your Voter ID or Driving License. Recent utility bills are also commonly accepted.
• Photographs: Keep two recent passport-size photographs ready.
• Age Proof: This is vital for senior citizens to get higher rates. A birth certificate or school certificate is also valid proof.

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