Best Fixed Deposit Rates
Compare best Fixed Deposit interest rates across all Indian banks 2026. Find highest FD rates from SBI, HDFC, ICICI, Small Finance Banks for all tenures.
Last updated: May 2026
Top FD Rates 2026
FD Interest Rates Across All Banks (2026)
Annual interest rates for general public (senior citizens get +0.50% extra)
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Best Rate |
|---|---|---|---|---|---|
| Suryoday SFB BEST SFB |
6.85% | 8.60% | 8.60% | 8.25% | 9.10% (999 days) |
| Unity SFB SFB |
6.50% | 8.85% | 8.50% | 8.50% | 9.00% (1001 days) |
| Equitas SFB SFB |
8.10% | 8.50% | 8.50% | 7.25% | 8.50% (888 days) |
| AU Small Finance SFB |
7.25% | 8.00% | 7.75% | 7.25% | 8.00% (15 months) |
| Ujjivan SFB SFB |
8.25% | 8.30% | 7.20% | 7.20% | 8.30% |
| Bandhan Bank Private |
7.85% | 7.85% | 7.25% | 5.85% | 8.00% (500 days) |
| RBL Bank Private |
7.50% | 7.80% | 7.50% | 7.10% | 8.00% (500 days) |
| IDFC FIRST Private |
6.50% | 7.25% | 7.00% | 7.00% | 7.90% (500 days) |
| Yes Bank Private |
7.25% | 7.25% | 7.25% | 7.00% | 7.75% |
| Axis Bank Private |
6.70% | 7.10% | 7.10% | 7.00% | 7.25% |
| HDFC Bank Private |
6.60% | 7.00% | 7.00% | 7.00% | 7.25% |
| ICICI Bank Private |
6.70% | 7.00% | 7.00% | 7.00% | 7.25% |
| Kotak Mahindra Private |
6.75% | 6.75% | 6.75% | 6.20% | 7.00% |
| SBI Public Sector |
6.80% | 7.00% | 6.75% | 6.50% | 7.00% |
| Bank of Baroda Public Sector |
6.85% | 7.15% | 7.15% | 6.80% | 7.30% |
| Canara Bank Public Sector |
6.85% | 6.85% | 6.80% | 6.70% | 7.25% |
| Post Office Govt |
6.90% | 7.00% | 7.10% | 7.50% | 7.50% (5 yr) |
💰 Returns Comparison: ₹10 Lakh FD for 3 Years
| Bank | Rate | Maturity Amount | Total Interest |
|---|---|---|---|
| SBI | 6.75% | ₹12,21,762 | ₹2,21,762 |
| HDFC Bank | 7.00% | ₹12,32,925 | ₹2,32,925 |
| AU Small Finance | 7.75% | ₹12,57,892 | ₹2,57,892 |
| Suryoday SFB | 8.60% | ₹12,91,015 | ₹2,91,015 |
Smart pick saves ₹70K+: Just by choosing Suryoday SFB over SBI on ₹10 lakh, 3-year FD, you earn ₹69,253 extra. Both are insured up to ₹5 lakhs by DICGC.
Senior Citizen FD Rates (60+ Years)
Senior citizens get 0.50% extra on regular rates. Some banks offer additional 0.25% for Super Senior (80+).
| Bank | Senior Citizen Rate (Best) | Super Senior (80+) |
|---|---|---|
| Suryoday SFB | 9.60% | 9.85% |
| Unity SFB | 9.50% | 9.75% |
| Equitas SFB | 9.00% | 9.25% |
| AU Small Finance | 8.50% | 8.75% |
| HDFC Bank | 7.75% | 8.00% |
| SBI | 7.50% | 7.50% |
Special schemes: SBI WeCare, HDFC Senior Citizen Care, SCSS (Senior Citizen Saving Scheme - 8.2% guaranteed by govt)
Tax-Saver FD (Section 80C)
5-year lock-in FDs that qualify for ₹1.5L tax deduction under Section 80C:
| Bank | Interest Rate | Senior Citizen | Min Amount |
|---|---|---|---|
| SBI | 6.50% | 7.00% | ₹1,000 |
| HDFC Bank | 7.00% | 7.50% | ₹100 |
| ICICI Bank | 7.00% | 7.50% | ₹10,000 |
| Axis Bank | 7.00% | 7.75% | ₹100 |
| AU Small Finance | 7.25% | 7.75% | ₹1,000 |
FD Strategies to Maximize Returns
FD Laddering
Split ₹5L into 5 FDs of ₹1L each with different tenures (1, 2, 3, 4, 5 years). Each year one FD matures - reinvest at current rates. Benefits:
- ✓ Annual liquidity
- ✓ Average out rate fluctuations
- ✓ Higher returns on long-term portion
Sweep-In FD
Auto-transfer excess savings (above threshold) to FD, earning 6-7% instead of 3% savings rate. Money breaks if needed.
- ✓ Liquidity + higher returns
- ✓ Fully automatic
- ✓ ICICI Money Multiplier, HDFC Sweep-in
Spread Across Banks
DICGC insures only ₹5L per bank. For amounts above ₹5L, split across 3-4 banks for full insurance coverage.
- ✓ Up to ₹5L insurance per bank
- ✓ Pick best rate from each
- ✓ Reduces concentration risk
Cumulative vs Non-Cumulative
For wealth growth, choose Cumulative (interest reinvested, compounded quarterly). For regular income, choose Non-cumulative (monthly/quarterly payouts).
- ✓ Cumulative: 7-10% better returns
- ✓ Non-cumulative: regular income
How Mrs. Bhatia Earned ₹1.2 Lakhs Extra by Comparing FD Rates
Mrs. Bhatia, a 58-year-old retired teacher from Chandigarh, had ₹15 lakhs to fix in 2023. Her bank (HDFC) offered 7%. Without comparing, she would have earned ₹4.5 lakhs over 4 years. But she checked Bajaj Finance (8.4%), AU Small Finance Bank (8.25%), and Suryoday Bank (9% for senior citizens). She split her ₹15 lakhs: ₹5L at Bajaj Finance (corporate FD with AAA rating), ₹5L at AU Bank, ₹5L at Suryoday. Total interest over 4 years: ₹5.7 lakhs. Extra earnings just by comparing: ₹1.2 lakhs. For senior citizens especially, comparing FD rates across banks is mandatory — never just renew at your existing bank.
Our Honest Recommendation
What We Recommend
Highest FD rates (Apr 2026): AU Small Finance Bank (8.25%), Suryoday Bank (8-9% senior), Bajaj Finance corporate FD (8.4%, AAA rated). Senior citizens get extra 0.5%. Tax-saving 5-year FD gives 80C deduction. Always ladder across maturities for liquidity.
Written by
Rahul Verma
Frequently Asked Questions
Which bank offers the highest FD interest rate in India 2026?
Suryoday Small Finance Bank offers the highest FD rate at 9.10% for 999 days. For senior citizens, the rate goes up to 9.60%. Other top options: Unity SFB (8.85% for 2 years), Equitas SFB (8.50% for 888 days). Among large banks, HDFC and ICICI offer 7.25% maximum.
Are Small Finance Bank FDs safe?
Yes, SFB FDs are safe. They are RBI-licensed and DICGC insures deposits up to ₹5 lakhs per depositor per bank, same as regular banks. Stay within ₹5 lakh limit per bank for full insurance protection.
What is the difference between FD and tax-saver FD?
Regular FD has flexible tenure (7 days to 10 years) and can be broken anytime with penalty. Tax-saver FD has 5-year mandatory lock-in but qualifies for ₹1.5L Section 80C deduction. Interest rates are similar for both. Choose tax-saver only if you need 80C and don't need money for 5 years.
How is FD interest taxed?
FD interest is fully taxable as per your income tax slab. Banks deduct 10% TDS if interest exceeds ₹40,000/year (₹50,000 for seniors). Submit Form 15G/15H to avoid TDS if your income is below taxable limit.
Can I break FD before maturity?
Yes, but banks charge 0.5-1% penalty on the applicable rate. For example, if 3-year rate was 7%, but you break after 2 years where rate was 6.5%, you get 6.5% minus 0.5% penalty = 6%. Tax-saver FDs cannot be broken at all.
Is FD better than mutual funds?
Depends on goals. FD gives guaranteed 6-9% returns, zero risk. Equity mutual funds give 12-15% historically but with market risk. For short-term (1-3 years) and risk-averse: FD. For long-term (5+ years) wealth: equity mutual funds win.
What is the minimum FD amount?
Most banks accept FDs from ₹1,000. Some banks have ₹100 minimum (HDFC, Axis tax-saver). SFBs typically have ₹500-1000 minimum. There's no upper limit, but DICGC insurance is capped at ₹5 lakhs per bank.
Should I choose monthly, quarterly, or yearly compounding?
Most Indian banks compound quarterly. Some offer monthly compounding which gives slightly higher effective returns. Difference is small (0.05-0.10% per year). For ₹10L, monthly vs quarterly compounding difference is ₹500-1000 per year.
Disclaimer: Information on this page is for educational purposes only. Rates, fees, and features are based on publicly available data as of May 2026 and may change. Please verify with respective providers before making decisions. We are not affiliated with any of the products listed.