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Which Bank Has the Highest FD Interest Rates in September 2026?
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Articles - FD Rates
- Which Bank has the Highest Interest Rate for Fixed Deposit
Small Finance Bank offers the highest fixed deposit interest rates in India, up to 8.10% p.a. for general citizens and 8.50% p.a. for senior citizens. Top SFB options include Suryoday Small Finance Bank with an 8.25% p.a. Interest rate, Utkarsh Small Finance Bank with 8.10% p.a., and Shivalik Small Finance Bank with 8.00% p.a. The Conventional Banks offer lower interest rates from 6.50% p.a. to 7.50% p.a. for general citizens.
Highest Interest Rate Fixed Deposits
Investors looking for safe options to park their money often check which bank gives the highest FD interest rate before booking a deposit. We’ve put together a list of banks offering the highest FD interest rates. See the list below before booking your deposit.
| Top Banks FD Rates | General citizens (% p.a.) | Senior citizens (% p.a.) |
| Muthoot Capital FD Interest Rates | 9.10 | 9.35 |
| Suryoday Small Finance Bank Interest Rate | 8.25 | 8.50 |
| Jana Small Finance Bank Interest Rate | 8.00 | 8.30 |
| Shriram Finance FD Interest Rates | 7.50 | 8.00 |
| Bandhan Bank FD Interest Rates | 7.45 | 7.95 |
| Bajaj Finance FD Interest Rates | 7.40 | 7.75 |
| YES Bank FD Interest Rates | 7.25 | 7.75 |
| Capital Small Finance Bank FD Rates | 7.25 | 7.75 |
| RBL Bank FD Interest Rates | 7.20 | 7.70 |
| ICICI Bank Interest Rate | 6.50 | 7.10 |
*Best FD rates by top banks as of August 2026.
Best Public Sector Bank FD Interest Rates
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 | 7.35 |
| Bank of Baroda Interest Rate | 6.75 | 7.25 |
| Bank of India Interest Rates | 6.70 | 7.45 |
| Union Bank of India Interest Rate | 6.55 | 7.05 |
| SBI FD Interest Rates | 6.45 | 7.05 |
*FD interest rates by public banks as of August 2026
Best Private Sector Bank FD Interest Rates
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 | 7.95 |
| IDFC FIRST Bank FD interest rates | 7.25 | 7.50 |
| City Union Bank FD interest rates | 7.25 | 7.55 |
| IndusInd Bank FD Interest Rates | 7.00 | 7.75 |
| HDFC Bank FD interest rates | 6.50 | 7.00 |
*FD interest rates by private banks as of August 2026
Highest FD Rates Offered by Small Finance Banks
Small Finance Banks usually 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 | 8.25 |
| Ujjivan Small Finance Bank Interest Rates | 7.80 | 8.30 |
| Slice Small Finance Bank Interest Rates | 7.75 | 7.75 |
| ESAF Small Finance Bank Interest Rates | 7.75 | 7.75 |
| Equitas Small Finance Bank Interest Rates | 8.00 | 8.50 |
*FD interest rates by SFBs as of August 2026
Conclusion
Small finance banks and NBFCs continue to offer higher FD interest rates than large public and private sector banks. Before you decide to put your money in an FD, check which bank offers the highest FD rate, while also keeping in mind the safety of your money in that bank or NBFC. Usually deposits with longer tenure benefit more due to compounding. Other things that you need to consider include where the deposit is callable or non-callable and whether the interest calculation is cumulative or non-cumulative.
FAQs
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Q.Which bank is paying the highest rate on FD?
Small Finance Banks offer the highest FD interest rates among scheduled commercial banks, going up to 8.10% p.a. for general customers and even higher for senior citizens, with top rates led by Suryoday, Utkarsh, and Shivalik. Among NBFCs, Muthoot Capital leads with FD rates of up to 9.10% p.a. for regular investors and 9.35% p.a. for senior citizens. -
Q. Which bank is safest and best for a fixed deposit?
Major public and private lenders like SBI, HDFC, and ICICI offer maximum safety, while Small Finance Banks like Suryoday and Jana provide higher returns up to 8.10% with the same ₹5 lakh DICGC deposit insurance backed by the RBI. -
Q. Which bank gives 8.5 interest on FD?
The major Small finance bank offers 8.50% p.a. or higher on fixed deposits. These specialised rates are only offered to senior citizens or on specific special tenures. -
Q. 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. -
Q. 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.
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