Fixed Deposit Interest Rates

Best FD Rates in India Today

If you want to get a quick view of the best FD interest rates in India today, the following table shows the top five available interest rates across banks and NBFCs:

Note: FD interest rates w.e.f. June 2026. Rates are subject to change. Rates shown are for retail deposits below Rs. 3 crore.

All Banks’ FD Interest Rates

When you think of earning interest from a fixed deposit, you think of banks in the public sector (with government undertakings) and private banks. Typically, government banks are more popular in rural, semi-urban areas, and private-sector banks are more preferred by urban depositors. The following lists give you a clear picture of the FD interest rates currently offered by all banks.

Public Sector Banks FD Rates

Due to their government backing, public sector banks are perceived to be the safest place to park your money. However, FD rates offered by these banks are lower than those of private or small finance banks. Below are the current FD rates of the top public sector banks.

Note: FD interest rates as of June 2026. Rates are subject to change.

Private Sector Banks FD Rates

Private sector banks typically offer marginally higher FD rates than public sector banks to attract deposits. The FD options offered by private banks are known for their flexibility and newer features that attract investors.

Note: FD interest rates w.e.f. June 2026. Rates are subject to change.

Small Finance Banks FD Rates

Like other banks, Small Finance Banks (SFBs) are also RBI-regulated entities. They serve underserved market segments across the country. To attract retail deposits, they offer significantly higher interest rates than large, scheduled banks.

Note: FD interest rates w.e.f. June 2026. Rates are subject to change.

NBFC & Corporate FD Rates

Compared with public and private sector banks, NBFCs and Housing Finance Companies (HFCs) offer higher FD rates.

Note: NBFC FD rates are subject to change.FD interest rates w.e.f. June 2026.

Foreign Banks FD Rates

The FD rates offered by foreign banks are comparable to those of large private sector Indian banks. However, foreign banks may not always offer the most competitive rates.

Note: Foreign bank FD interest rates w.e.f. June 2026. Rates are subject to change.

Highest FD Interest Rates by Bank

Check the table below to get a combined view of the highest FD interest rates available right now across scheduled private banks, public banks, and SFBs.

Note: FD interest rates for retail deposits below Rs. 3 crore, w.e.f. June 2026. Rates are subject to change.

Which Bank Offers the Highest FD Interest Rate in India?

When it comes to getting the highest fixed deposit interest rate, which bank offers the highest rate depends on what type of bank you want to put your money in. We can look at the rates under three board categories of banks.

Highest FD Rate by SFBs

Suryoday Small Finance Bank and Utkarsh Small Finance Bank currently offer the highest FD interest rates at 8.10% p.a. for the general public. For senior citizens, Shivalik Small Finance Bank has the highest rate of up to 8.30% p.a.

Highest FD Rate by NBFCs

Among NBFCs, Muthoot Capital Services tops the list at 9.10% p.a. for general depositors and 9.35% p.a. for senior citizens. That said, NBFC deposits are not covered by DICGC insurance, so they carry a higher risk compared to bank FDs.

Highest FD Rate by Scheduled Banks

Bandhan Bank and IDFC FIRST Bank offer the highest rates at 7.25% p.a. for general depositors. Among public sector banks, Punjab National Bank offers up to 6.60% p.a., Union Bank of India up to 6.65% p.a., and Bank of India up to 6.70% p.a.

Fixed Deposit Rates for Senior Citizens

Senior citizens earn higher fixed deposit rates than general depositors. Most banks offer an additional 0.50% p.a., and some offer up to 0.75% p.a. for super senior citizens aged 80 and above. This makes FDs particularly suited to retirees who need a guaranteed, predictable income without any market-related risk.

The highest senior citizen FD rates are up to 8.30% p.a. at select SFBs and 9.35% p.a. from NBFCs like Muthoot Capital. Always compare rates across banks before investing. Even a 0.25% difference compounds visibly over a 3- to 5-year tenure.

Best FD Rates for Senior Citizens

Here are the best fixed deposit interest rates for senior citizens across different banks and non-banking financial companies.

Note: Senior citizen FD rates w.e.f. June 2026.

FD Interest Rates by Tenure

The tenure of your FD is the second most important factor in determining your returns, after the deposit amount. Banks typically offer different rates for short-term, medium-term, and long-term FDs. Below is a tenure-wise breakdown of FD interest rates.

1-Year FD Interest Rates

1-year FDs are among the most popular choices for investors who want short-term returns without locking in money for too long.

Note: 1-year FD interest rates w.e.f. June 2026. Rates are subject to change.

3-Year FD Interest Rates

3-year FDs offer a balance between returns and liquidity. Many investors use this tenure to plan for medium-term goals.

Note: 3-year FD interest rates w.e.f. June 2026. Rates are subject to change.

5-Year FD Interest Rates

5-year FDs are a popular choice for long-term wealth building and tax saving. The 5-year tax-saving FDs also qualifies for Section 80C deductions of up to Rs. 1.5 lakh per year.

Note: 5-year FD interest rates w.e.f. June 2026. Rates are subject to change.

10 Year FD Interest Rates

10-year FDs are perfect for long-term investors who want a secure, guaranteed return over a long period.

Note: 10-year FD interest rates w.e.f. June 2026. Rates are subject to change.

FD Interest Rates Comparison

To help you compare across major institutions at a glance, here is a consolidated rate card for the most commonly chosen 1-year and 3-year tenures. All rates are for deposits under Rs. 3 crore. You can also check this FD rates comparison for a more detailed side-by-side comparison.

Note: FD interest rates as of June 2026. Rates are subject to change.

Top 10 Banks Offering the Highest FD Interest Rates in India

Banks that offer the highest FD interest rates are usually from the SFB category. The list also has some scheduled banks that offer higher interest rates.

Note: Rates shown are the highest available across any tenure at each institution w.e.f. June 2026. Rates are for retail deposits below Rs. 3 crore

Fixed Deposit Calculator

An FD calculator helps you estimate and see how your investment is going to grow over time. At the same time, you can also use the calculator to plan your investment if you have a specific fund amount or a timeline in mind.

The FD calculator also helps you 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.

Impact of RBI Repo Rate on FD Rates

The RBI's repo rate is the single biggest factor that banks consider to decide their FD rates. When the RBI raises the repo rate, banks' cost of borrowing goes up, which usually leads them to raise FD rates to attract deposits. When the RBI cuts the repo rate, lending becomes cheaper, and banks reduce FD rates in response.

Here is how the RBI's rate cycle has played out since 2022 and what it means for FD investors today.

Special Fixed Deposit Schemes

Banks introduce special FD schemes based on various factors. For example, SBI special FD schemes are popular among investors. While some banks offer higher interest rates for specific age groups or longer tenures, other banks use the fund to invest in causes like sustainable development. Below is a combined list of special FD schemes offered by various banks.

Note: FD interest rates w.e.f. June 2026. Rates are subject to change. This is not an exhaustive list of all the special FD schemes available.

Tax-Saving Fixed Deposits

A Tax-Saving Fixed Deposit lets you claim a deduction of up to Rs. 1.5 lakh per financial year under Section 80C. There is a 5-year lock-in period with no premature withdrawals. Only individual investors and HUFs are eligible to invest. The first account holder can claim the Section 80C deductions for jointly held fixed deposits.

All the interest collected on a Tax Saving FD is taxable at your income tax slab rate. The interest rates on these FDs range from 6.40% to 7.00% p.a. for general depositors, and they can be obtained from any scheduled commercial bank, while most major banks offer this range. Senior citizens receive an extra of 0.50% on top of the regular rate.

Post Office FD

The Post Office Time Deposit (POTD) offers government-backed security with quarterly-compounded Post Office FD interest rates. Currently, post office rates range from 6.9% to 7.5% for a 5-year term. Notably, the five-year deposit qualifies for tax benefits under Section 80C, making it a safer option for investment for Indian savers.

What are Fixed Deposit Interest Rates?

A fixed deposit interest rate is the guaranteed annual return a bank or non-banking financial company (NBFC) locks in when you deposit a lump sum for a fixed period. Whatever rate is agreed at booking is what you get at maturity.

Your actual return depends on five things: how much you deposit, for how long, whether you pick a cumulative FD (interest reinvests and pays out at maturity) or non-cumulative (interest paid monthly or quarterly), how frequently interest compounds (quarterly, by default in most banks), and your depositor category (regular or senior citizens). Along with the guaranteed returns and security of trusted banks, FDs come with an additional layer of security. Deposits up to ₹5 lakh are insured by DICGC at all scheduled banks.

How FD Interest Rates Are Calculated

There are two primary methods of calculating FD interest rates, which help you to understand how the FD returns work:

Simple Interest (SI)

For non-cumulative FDs, the simple interest formula is used to pay at regular intervals – monthly, quarterly, half-yearly or annually. In this scenario, interest will accrue only on the original principal amount and not on the compound.

Formula: SI = (P x R x T) / 100

Example: Principal = Rs. 5,00,000 | Rate = 6.50% p.a. | Tenure = 3 years

SI = (5,00,000 x 6.50 x 3) / 100 = Rs. 97,500

Monthly interest payout = Rs. 97,500 / 36 = Rs. 2,708 approximately

Compound Interest (CI)

For cumulative FDs, the compound interest formula is used. In this, the interest earned is added back to the principal and reinvested. Banks in India typically compound interest quarterly.

Formula: A = P x (1 + r/n)^(n x t)

Example: Principal = Rs. 5,00,000 | Rate = 6.50% p.a. | Tenure = 3 years | Compounding: Quarterly

r = 0.065, n = 4, t = 3

A = 5,00,000 x (1 + 0.065/4)^(4x3) = 5,00,000 x (1.01625)^12 = approximately Rs. 6,03,878

Interest earned = Rs. 6,03,878 - Rs. 5,00,000 = Rs. 1,03,878

As you can see in the calculation above, the effect of compounding becomes significantly larger with higher principal amounts and longer tenures.

FD Taxation & TDS Rules

Under 'Income from Other Sources' as per the Income Tax Act, 1961, interest earned on a fixed deposit is fully taxable. The earned interest is added to your total income, and with the applicable tax rate slab. There is no separate tax exemption on FD interest (except for the principal amount).

TDS on FD Interest

Banks and NBFCs are required to deduct TDS on FD interest income that exceeds the following limit in a financial year:

• General Citizens: If the income from a single bank exceeds ₹50,000 per year
• Senior citizens: If the income exceeds ₹1,00,000 per year

If your PAN is registered with the bank, TDS is deducted at 10%. It’s deducted at 20% if you have not provided the PAN. TDS deducted can be claimed as a credit when you file your income tax return. Depositors can use Form 15G/15H to avoid TDS.

FD Interest Rate Trends & Latest Updates

The FD rate cycle has been through significant movement over the past few years. Here is an overview of the key trends.

• 2022-2023 Rate Hike: To combat post-COVID inflationary pressures, RBI hiked the repo rate aggressively in the period May 2022 to February 2023. The rate of these bank deposits jumped, the highest rates at large private banks reaching 7.00%-7.25% p.a.
• Stable 2024 : Inflation remained above the target value of 4%, so the RBI kept the repo rate at 6.50% for 2024. FD rates held steady in the 6.50% to 7.25% range.
• 2025 Rate Cut: RBI started cutting rates in February 2025 and has brought the repo rate down by 125 basis points to 5.25% by December 2025. The rates of the FD began a downward trend at banks. Small Finance Banks and NBFCs, however, held their rates high to get deposit inflows.
• Current Scenario (2026): In April 2026, the RBI kept the repo rate unchanged at 5.25% for a neutral stance. The real interest rates on FDs have remained good despite inflation being relatively low in India compared to 2022-23, when rates were high.

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