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Which Bank Has the Highest FD Interest Rates?
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- Which Bank has the Highest Interest Rate for Fixed Deposit
Small Finance Banks (SFBs) offer some of the highest fixed deposit interest rates in India. Currently, Suryoday Small Finance Bank and Utkarsh Small Finance Bank provide FD interest rates of up to 8.10% p.a. for eligible tenures, making them attractive options for investors seeking higher returns.
What is a Fixed Deposit?
Fixed Deposit (FD) is a savings instrument provided by banks and other financial institutions that allows you to invest a fixed amount over a fixed period and earn a predetermined interest rate. It has stable returns, flexible tenures, and a cumulative or non-cumulative payout option that can ease comparing FD interest rates across various banks to select the most appropriate investment per your financial objectives.
Highest Interest Rate FDs
The table below shows the best FD rates for general and senior citizens on amounts below ₹3 crore:
| Bank | Interest Rates (p.a.) | ||
| Highest Interest Rate | 1-Year FD Interest Rate | 3-Year FD Interest Rate | |
| Suryoday Small Finance Bank | 8.10% | 7.25% | 7.25% |
| Utkarsh Small Finance Bank | 8.10% | 6.00% | 7.50% |
| Shivalik Small Finance Bank | 8.05% | 6.05% | 7.55% |
| Unity Small Finance Bank | 8.00% | 7.50% | 6.75% |
| Equitas Small Finance Bank | 8.00% | 7.10% | 7.10% |
| Ujjivan Small Finance Bank | 7.80% | 7.25% | 7.25% |
| Slice Small Finance Bank | 7.75% | 6.25% | 7.50% |
| Bandhan Bank | 7.45% | 7.00% | 7.25% |
| SBM Bank | 7.30% | 6.70% | 7.10% |
| Jana Small Finance Bank | 7.25% | 7.00% | 7.25% |
| YES Bank | 7.20% | 6.65% | 7.00% |
| RBL Bank | 7.20% | 7.00% | 7.20% |
| IndusInd Bank | 7.00% | 6.75% | 6.90% |
| South Indian Bank | 6.80% | 6.25% | 6.20% |
| Bank of India | 6.70% | 6.50% | 6.70% |
| Federal Bank | 6.70% | 6.25% | 6.40% |
| HDFC Bank | 6.50% | 6.25% | 6.45% |
| Axis Bank | 6.50% | 6.25% | 6.50% |
| State Bank of India | 6.40% | 6.25% | 6.30% |
| Central Bank of India | 6.25% | 6.10% | 6.00% |
*Fixed deposit rates as of July 2026
*All Small Finance Banks are insured up to ₹5 lakh by DICGC and regulated by the Reserve Bank of India (RBI).
Highest Senior Citizens FD Rates
Here’s an overview of the highest rates available to senior citizens for different tenures.
| Bank | Interest Rates (p.a.) | |||
| Highest Interest Rate | 1-Year FD | 3-Year FD | 5-Year FD | |
| Unity Small Finance Bank | 8.50% | 8.00% | 7.25% | 7.25% |
| Shivalik Small Finance Bank | 8.50% | 6.50% | 8.00% | 6.75% |
| Jana Small Finance Bank | 8.30% | 7.50% | 8.30% | 8.00% |
| Suryoday Small Finance Bank | 8.25% | 7.40% | 7.40% | 8.05% |
| Utkarsh Small Finance Bank | 8.25% | 6.50% | 8.00% | 7.50% |
| AU Small Finance Bank | 7.90% | 6.85% | 7.90% | 7.25% |
| YES Bank | 7.75% | 7.15% | 7.75% | 7.50% |
| Bank of Baroda | 7.25% | 6.75% | 6.75% | 6.90% |
| ICICI Bank | 7.10% | 6.75% | 6.95% | 7.10% |
| HDFC Bank | 7.00% | 6.75% | 6.95% | 6.90% |
*Senior citizen fixed deposit rates as of July 2026
FD Rates Offered by Public Sector Banks
The top public sector banks offering the highest fixed deposit rate for general and senior citizens for amounts below ₹3 crore are:
| Bank | Interest Rates (p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| Bank of India | 6.85% | 6.50% | 6.70% | 6.00% |
| Punjab & Sind Bank | 6.85% | 5.85% | 5.85% | 5.95% |
| Indian Bank | 6.80% | 6.10% | 6.05% | 6.00% |
| Bank of Baroda | 6.75% | 6.25% | 6.25% | 6.30% |
| Union Bank of India | 6.65% | 6.20% | 6.10% | 6.00% |
| Bank of Maharashtra | 6.65% | 6.20% | 5.25% | 5.00% |
| Canara Bank | 6.60% | 6.25% | 6.25% | 6.25% |
| Punjab National Bank | 6.60% | 6.25% | 6.35% | 6.10% |
| State Bank of India | 6.45% | 6.25% | 6.30% | 6.05% |
| UCO Bank | 6.45% | 6.10% | 6.00% | 6.00% |
*Fixed deposit rates as of July 2026
FD Rates Offered 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:
| Bank | Interest Rates (p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| IDFC FIRST Bank | 7.35% | 6.50% | 7.35% | 6.75% |
| CSB Bank | 7.35% | 5.00% | 5.75% | 5.75% |
| Jammu & Kashmir Bank | 7.30% | 6.80% | 6.80% | 6.85% |
| Tamilnad Mercantile Bank | 7.25% | 6.80% | 6.70% | 6.70% |
| Yes Bank | 7.25% | 6.65% | 7.00% | 6.75% |
| City Union Bank | 7.25% | 6.65% | 6.50% | 6.55% |
| Dhanlaxmi Bank | 7.25% | 6.25% | 6.50% | 6.50% |
| Karnataka Bank | 7.00% | 6.50% | 6.15% | 6.15% |
| DBS Bank | 6.85% | 6.30% | 6.40% | 6.25% |
| Kotak Mahindra Bank | 6.80% | 6.50% | 6.40% | 6.25% |
| South Indian Bank | 6.80% | 6.35% | 6.20% | 5.70% |
| Karur Vysya Bank | 6.70% | 6.25% | 6.40% | 6.25% |
| Nainital Bank | 6.60% | 6.40% | 6.25% | 5.75% |
| Axis Bank | 6.50% | 6.25% | 6.50% | 6.50% |
| HDFC Bank | 6.50% | 6.25% | 6.45% | 6.40% |
| ICICI Bank | 6.50% | 6.25% | 6.45% | 6.50% |
| IDBI Bank | 6.50% | 6.20% | 6.35% | 6.25% |
Note: Fixed deposit rates as of July 2026
Post Office FD Interest Rates
The Post Office provides government-guaranteed returns on various investment tenures. The following table gives a comparison of the recent Post Office FD interest rates based on 1-year, 2-year, 3-year and 5-year deposits.
| Tenure | Rate of Interest (p.a.) |
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 years | 7.50% |
*Post Office Fixed deposit rates as of July 2026
Tax Saving FD Interest Rates
Tax Saving FD enables investors to get guaranteed returns and claim tax benefits under Section 123 of the Income-tax Act, 2025 (earlier Section 80C). The following table is a comparison of the latest tax-saving FD rates of the general and senior citizens in the major banks.
| Banks | Interest Rates (p.a.) | |
| General Citizens | Senior Citizens | |
| Suryoday Small Finance Bank | 7.90% | 8.05% |
| Jana Small Finance Bank | 7.77% | 8.00% |
| DCB Bank | 7.50% | 7.75% |
| Ujjivan Small Finance Bank | 7.20% | 7.70% |
| SBM Bank India | 7.00% | 7.50% |
| Utkarsh Small Finance Bank | 7.00% | 7.50% |
| Capital Small Finance Bank Limited | 6.80% | 7.30% |
| AU Small Finance Bank | 6.75% | 7.25% |
| RBL Bank | 6.70% | 7.20% |
| IndusInd Bank | 6.65% | 7.15% |
| IDFC FIRST Bank | 6.60% | 7.10% |
| Jammu & Kashmir Bank | 6.60% | 7.10% |
| Karur Vysya Bank | 6.55% | 6.95% |
| ICICI Bank | 6.50% | 7.10% |
| Axis Bank | 6.50% | 7.00% |
| Karnataka Bank | 6.50% | 6.90% |
| Federal Bank | 6.40% | 6.90% |
| HDFC Bank | 6.40% | 6.90% |
| Bank of Baroda | 6.30% | 6.90% |
| Bandhan Bank | 6.25% | 7.25% |
| Bank of India | 6.25% | 6.75% |
| Canara Bank | 6.25% | 6.75% |
| IDBI Bank | 6.25% | 6.75% |
| Kotak Mahindra Bank | 6.25% | 6.75% |
| Shivalik Small Finance Bank Limited | 6.25% | 6.75% |
| Indian Overseas Bank | 6.10% | 6.60% |
| State Bank of India | 6.05% | 7.05% |
| Central Bank of India | 6.00% | 6.50% |
| Indian Bank | 6.00% | 6.50% |
| UCO Bank | 6.00% | 6.50% |
| Punjab & Sind Bank | 5.95% | 6.45% |
| Union Bank of India | 5.90% | 6.40% |
| South Indian Bank | 5.70% | 6.20% |
| Bank of Maharashtra | 5.00% | 5.50% |
*Tax Saving Fixed deposit rates as of July 2026
Leading Foreign Banks FD Interest Rates
| Bank Name | Interest Rates (p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| Deutsche Bank | 7.00% | 5.00% | 6.25% | 6.25% |
| Standard Chartered Bank | 6.60% | 6.60% | 6.50% | 6.25% |
| HSBC Bank | 5.50% | 4.00% | 5.35% | 5.50% |
*Foreign Banks Fixed deposit rates as of July 2026
Company or Corporate FD Rates
Leading finance and housing finance companies offer attractive returns through Corporate FDs. Compare current interest rates, tenure-based returns and benefits of senior citizens in the following table.
| Company Name | Interest Rates (p.a.) | Additional interest rate for senior citizens (p.a.) | |||
| Highest Rate Slab | 1-year tenure | 3-year tenure | 5-year tenure | ||
| Muthoot Capital Services Limited | 8.95% | 7.90% | 8.95% | 8.50% | 0.25% |
| Manipal Housing Finance Syndicate Ltd. | 8.25% | 8.25% | 8.25% | 7.75% | 0.25% |
| Shriram Finance | 7.50% | 6.85% | 7.50% | 7.50% | 0.50% |
| Mahindra Finance | 7.45% | 6.60% | 7.40% | 7.45% | 0.25% - 0.35% |
| ICICI Home Finance | 7.35% | 6.85% | 7.10% | 7.20% | 0.25% - 0.35% |
| PNB Housing Finance Ltd. | 7.25% | 6.70% | 7.10% | 7.25% | 0.25% |
| Sundaram Home Finance | 7.15% | 6.70% | 7.00% | 7.15% | 0.35% - 0.50% |
| LIC Housing Finance Ltd. | 6.90% | 6.70% | 6.85% | 6.90% | 0.25% |
Note: Company or Corporate Fixed deposit rates as of July 2026
Different Types of Fixed Deposits
Fixed deposits come in various models, each with its own investment objective, liquidity requirements, and tax planning objectives.
- Standard Fixed Deposit: Fixed deposits come in various models, each with its own investment objective, liquidity requirements, and tax planning objectives.
- Tax Saving Fixed Deposit: Provides tax deductions under Section 123 with a lock-in of five years as a mandatory requirement for eligible resident individuals and HUFs.
- Floating Rate Fixed Deposit: The interest rate varies according to the benchmark rates, including the RBI repo rate, which leads to fluctuating returns within the tenure.
- Flexi Fixed Deposit: Linked to a savings account, allowing partial withdrawal, the remaining portion of the deposit still earns a suitable FD interest rate.
- Senior Citizen Fixed Deposit: Offered to people aged 60 years and above, with preferential interest rates over the normal fixed deposits.
- Corporate Fixed Deposit: NBFCs and HFCs issue these deposits that tend to give investors a better interest rate as compared to bank fixed deposits.
- Cumulative Fixed Deposit: The interest earned is reinvested during the tenure period, which allows the compounding of the deposits, and the accumulated value is given out with the principal value at maturity.
- Non-Cumulative Fixed Deposit: Interest is paid monthly, quarterly, half-yearly, or annually, making it suitable for investors seeking regular income.
- Callable Fixed Deposit: This allows the deposit to be withdrawn before maturity, but the bank may impose a penalty on the deposit or pay less interest.
- Non-Callable Fixed Deposit: Investors are not allowed to withdraw prematurely and they are normally offered relatively good interest rates as compensation to lower liquidity.
Benefits of Investing in Fixed Deposits
Fixed deposits not only provide predictable returns, but also offer various financial advantages which can assist in saving your money to secure and enhance financial flexibility.
Earn Stable and Guaranteed Returns
Fixed deposits offer a fixed interest rate, which does not change during the investment tenure. This guarantees stable returns irrespective of market changes. Thus, FDs are a practical option for conservative investors who need stability.
Protect Your Investment Capital
Fixed deposits are created to keep your principal intact and earn interest over the selected period. Additionally, eligible bank deposits are insured up to ₹5 lakh per depositor under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Claim Tax Benefits Under Section 123
Tax Saving Fixed Deposits enable eligible resident individuals and Hindu Undivided Families (HUFs) to claim a deduction of up to ₹1.5 lakh under Section 123 of the Income-tax Act, 2025 (earlier Section 80C). These deposits are required to have a lock-in period of five years.
Avail a Loan Against Your Fixed Deposit
A loan against FD enables you to take a loan or overdraft facility using your fixed deposit as security. This gives you easy access to the funds without withdrawing your investment at an early stage, which will enable the FD to keep earning interest.
Get a Credit Card Against Your Fixed Deposit
The credit card against FD enables you to receive credit without high income or a long credit history. Your fixed deposit is used as security and still gains interest, which assists in developing or enhancing your credit history.
How to Open a Fixed Deposit Account?
An FD account can be opened in either a traditional way or digitally.
Online Process
Opening a fixed deposit online is a simple process that can be completed through your bank's website or mobile banking application.
- 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
If you prefer visiting a branch, you can open a fixed deposit by completing the application process in person.
- 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
Key Takeaways
Small Finance Banks currently offer some of the highest FD interest rates, with Suryoday Small Finance Bank and Utkarsh Small Finance Bank offering interest rates of up to 8.10% p.a. for eligible tenures. Fixed deposits provide guaranteed returns at a fixed interest rate, and eligible bank deposits are insured up to ₹5 lakh per depositor by DICGC. Comparing FD interest rates, tenures, and payout options can help you choose the most suitable fixed deposit for your financial goals.
FAQs
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1. How often do banks revise FD interest rates?
The banks are allowed to periodically revise the interest rates of FDs depending on the RBI policy rates, liquidity levels, and market dynamics. However, once you book an FD, the agreed interest rate remains fixed for the entire tenure unless it is a floating-rate FD. -
2. Can I open multiple fixed deposits with the same bank?
Yes. The majority of banks enable customers to open various fixed deposits with a variety of investment amounts, durations and payouts. This assists in diversifying investments and achieving various financial objectives. -
3. What happens if an FD matures and is not withdrawn?
If a fixed deposit is not withdrawn or renewed on maturity, the bank's policy applies. Other banks will automatically extend the FD to the same tenure, but some will transfer the maturity value to the linked savings account. -
4. Can Non-Resident Indians (NRIs) invest in fixed deposits in India?
Yes. The NRIs are permitted to invest in certain fixed deposit schemes like NRE, NRO and FCNR deposits as per the RBI guidelines and eligibility criteria of the concerned bank. -
5. Does the FD payout option affect the interest rate?
The interest rate is based on the bank and tenure instead of the payout option. However, cumulative and non-cumulative FDs are differentiated by the manner and timing of interest payment that influences maturity value and cash flow.
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