What is a Fixed Deposit?
Best Fixed Deposit Rates in India 2026 (FD), also referred as time deposit or term deposit is an investment option that allows depositors to park their money for a fixed period and earn fixed interest on it at regular intervals during the chosen tenure or at maturity.
It offers income certainty and capital protection, making it a popular investment choice, especially among new and conservative investors. These features also make fixed deposits an ideal instrument for realizing short-term financial goals and for parking emergency and post-retirement corpuses.
Fixed Deposit Interest Rates
Currently, FD interest rates of scheduled banks range from 2.50% p.a. to 8.00% p.a. for regular depositors for tenures ranging from 7 days to 10 years. Small finance banks and NBFCs offer the highest FD interest rates. Following them are PSU banks and large private sector banks. However, private sector banks like Bandhan Bank, DCB Bank, CSB Bank, RBL Bank, IDFC FIRST Bank, SBM Bank, IndusInd Bank, Yes Bank, Karur Vysya Bank and Tamilnad Mercantile Bank offer higher FD slab rates than the Best Fixed Deposit Rates in India 2026 offered by other private sector banks.
Top 20 Banks Offering Highest Best Fixed Deposit Rates in India 2026
Banks | Highest FD rate (% p.a.) | 1-year FD rate (% p.a.) | 3-year FD rate (% p.a.) | 5-year FD rate (% p.a.) | Additional interest rate for senior citizens (% p.a.) |
| Suryoday Small Finance Bank | 8.00 | 7.25 | 7.25 | 8.00 | 0.20 |
| Jana Small Finance Bank | 8.00 | 7.00 | 7.50 | 8.00 | 0.50 |
| ESAF Small Finance Bank | 7.60 | 4.75 | 6.00 | 5.75 | 0.50 |
| Utkarsh Small Finance Bank | 7.50 | 6.00 | 7.50 | 7.00 | 0.50 |
| Ujjivan Small Finance Bank | 7.45 | 7.25 | 7.20 | 7.20 | 0.50 |
| Equitas Small Finance Bank | 7.30 | 7.00 | 7.00 | 7.00 | 0.50 |
| Shivalik Small Finance Bank | 7.30 | 6.00 | 7.00 | 6.50 | 0.50 |
| Bandhan Bank | 7.20 | 7.00 | 7.00 | 5.85 | 0.50-0.75 |
| DCB Bank | 7.15 | 6.90 | 7.00 | 7.00 | 0.25-0.50 |
| RBL Bank | 7.20 | 7.00 | 7.20 | 6.70 | 0.50 |
| Capital Small Finance Bank | 7.15 | 7.00 | 7.00 | 6.90 | 0.50 |
| SBM Bank | 7.10 | 7.00 | 7.10 | 7.00 | 0.50 |
| AU Small Finance Bank | 7.10 | 6.35 | 7.10 | 6.75 | 0.50 |
| Central Bank of India | 6.75 | 6.40 | 6.25 | 6.25 | 0.50 |
| YES Bank | 7.00 | 6.65 | 7.00 | 6.75 | 0.50-0.75 |
| Induslnd Bank | 7.00 | 6.75 | 6.90 | 6.65 | 0.50 |
| Unity Small Finance Bank | 6.75 | 6.50 | 6.75 | 6.75 | 0.50 |
| Federal Bank | 6.75 | 6.25 | 6.75 | 6.50 | 0.50 |
| Bank of India | 6.70 | 6.25 | 6.25 | 6.00 | 0.50 |
Comparison – Best Fixed Deposit Rates in India 2026
Best Fixed Deposit Rates in India 2026 Offered by Other Public Sector Banks
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| Bank of Baroda | 6.60 | 6.25 | 6.50 | 6.40 |
| Bank of India | 6.70 | 6.25 | 6.25 | 6.00 |
| Bank of Maharashtra | 6.55 | 6.20 | 5.25 | 5.00 |
| Canara Bank | 6.15 | 5.90 | 5.90 | 5.90 |
| Indian Bank | 6.45 | 6.10 | 6.05 | 6.00 |
| Indian Overseas Bank | 6.60 | 6.50 | 6.10 | 6.10 |
| Punjab & Sind Bank | 6.60 | 5.85 | 5.85 | 5.95 |
| Punjab National Bank | 6.40 | 6.10 | 6.30 | 6.10 |
| State Bank of India | 6.45 | 6.25 | 6.30 | 6.05 |
| UCO Bank | 6.45 | 6.25 | 6.15 | 6.10 |
| Union Bank of India | 6.30 | 6.25 | 6.00 | 6.10 |
Best Fixed Deposit Rates in India 2026 Offered by Other Private Sector Banks
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| Axis Bank | 6.45 | 6.25 | 6.45 | 6.45 |
| City Union Bank | 6.75 | 6.50 | 6.50 | 6.25 |
| CSB Bank | 7.00 | 5.00 | 5.75 | 5.75 |
| DBS Bank | 6.60 | 6.30 | 6.40 | 6.25 |
| Dhanlaxmi Bank | 6.95 | 6.25 | 6.50 | 6.50 |
| HDFC Bank | 6.45 | 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 |
| IDFC FIRST Bank | 7.00 | 6.30 | 7.00 | 7.00 |
| Jammu & Kashmir Bank | 7.00 | 6.50 | 6.65 | 6.60 |
| Karnataka Bank | 6.65 | 6.50 | 6.15 | 6.15 |
| Karur Vysya Bank | 6.80 | 6.55 | 6.55 | 6.55 |
| Kotak Mahindra Bank | 6.70 | 6.25 | 6.40 | 6.25 |
| Nainital Bank | 6.60 | 6.40 | 6.25 | 5.75 |
| South Indian Bank | 6.60 | 6.60 | 6.20 | 5.70 |
| Tamilnad Mercantile Bank | 6.90 | 6.80 | 6.60 | 6.60 |
| Yes Bank | 7.00 | 6.65 | 7.00 | 6.75 |
Post Office FD Interest Rates
| Tenure | Rate of Interest (%p.a.) |
| 1 year | 6.90 |
| 2 years | 7.00 |
| 3 years | 7.10 |
| 5 years | 7.50 |
FD Interest Rates – Tax Saving FD
| Banks | Interest Rates (p.a.) | |
| General Citizens | Senior Citizens | |
| AU Small Finance Bank | 6.75% | 7.25% |
| Axis Bank | 6.45% | 7.20% |
| Bandhan Bank | 6.25% | 7.25% |
| Bank of Baroda | 6.00% – 6.40% | 7.00% |
| Bank of India | 6.00% | 6.75% – 6.90% |
| Bank of Maharashtra | 5.00% | 5.50% |
| Capital Small Finance Bank Limited | 6.90% | 7.40% |
| Central Bank of India | 6.25% | 6.75% |
| Canara Bank | 6.25% | 6.75% |
| DCB Bank | 7.00% | 7.25% |
| Federal Bank | 6.50% | 7.00% |
| HDFC Bank | 6.40% | 6.90% |
| ICICI Bank | 6.60% | 7.20% |
| IDBI Bank | 6.35% | 6.85% |
| IDFC FIRST Bank | 6.60% | 7.10% |
| Indian Bank | 6.00% | 6.50% |
| Indian Overseas Bank | 6.10% | 6.60% |
| IndusInd Bank | 6.65% | 7.40% |
| Jammu & Kashmir Bank | 6.50% | 7.00% |
| Jana Small Finance Bank | 8.00% | 8.00% |
| Karnataka Bank | 6.50% | 6.90% |
| Kotak Mahindra Bank | 6.25% | 6.75% |
| Karur Vysya Bank | 6.55% | 6.95% |
| Punjab & Sind Bank | 5.95% | 6.45% |
| RBL Bank | 6.70% | 7.20% |
| SBM Bank India | 7.00% | 7.50% |
| Shivalik Small Finance Bank Limited | 6.50% | 7.00% |
| South Indian Bank | 5.70% | 6.20% |
| State Bank of India | 6.05% | 7.05% |
| Suryoday Small Finance Bank | 8.00% | 8.00% |
| UCO Bank | 6.10% | 6.60% |
| Ujjivan Small Finance Bank | 7.20% | 7.70% |
| Union Bank of India | 5.90% | 6.40% |
| Utkarsh Small Finance Bank | 7.00% | 7.50% |
Best Fixed Deposit Rates in India 2026 – Leading Foreign Banks
| 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 |
| HSBC Bank | 5.50 | 4.00 | 5.35 | 5.50 |
| Standard Chartered Bank | 6.60 | 6.60 | 6.50 | 6.25 |
Company/Corporate Best Fixed Deposit Rates in India 2026
| Company Name | Interest Rates (p.a.) | Tenure range | Additional interest rate for senior citizen (p.a.) | ||
| 1-year tenure | 3-year tenure | 5-year tenure | |||
| Manipal Housing Finance Syndicate Ltd. | 8.25% | 8.25% | 7.75% | 12-60 months | 0.25% |
| Muthoot Capital Services Limited | 7.90% | 8.95% | 8.50% | 12-60 months | 0.25% |
| Mahindra Finance | 6.60% | 7.00% | 7.00% | 12-60 months | 0.10%-0.25% |
| Shriram Finance | 7.00% | 7.60% | 7.60% | 12-60 months | 0.50% |
| ICICI Home Finance | 6.75% | 6.90% | 7.00% | 12-120 months | 0.35% |
| Sundaram Home Finance | 6.70% | 7.00% | 7.15% | 12-60 months | 0.35%-0.50% |
| Kerala Transport Development Finance Corporation | 7.00% | 7.00% | 6.75% | 12-60 months | 0.25% |
| PNB Housing Finance Ltd. | 6.85% | 7.10% | 7.10% | 12-120 months | 0.20%-0.30% |
| LIC Housing Finance Ltd. | 6.70% | 6.85% | 6.90% | 12-60 months | 0.25% |
**At Monthly Rests. Additional interest of 0.15% p.a on all renewals, where the deposit is matured. Additional interest of 0.05% p.a. for women depositors.
Senior Citizens Best Fixed Deposit Rates in India 2026
Banks and NBFCs usually offer senior citizens an additional interest rate of 0.50% p.a. over and above the FD interest rates offered to other depositors. Many banks, under their special schemes and/or for specific tenures, offer an additional interest rate of 0.20% – 0.50% over and above their senior citizen Best Fixed Deposit Rates in India 2026. For instance, senior citizen Best Fixed Deposit Rates in India 2026 offered on a tenure of 15 months to less than 18 months by ICICI Bank are 10 bps or 0.10% over and above the existing additional senior citizen Best Fixed Deposit Rates in India 2026 of 50 bps. Furthermore, some banks and NBFCs also offer additional interest rates to super senior citizens (age 80 years and above). For instance, Indian Bank offers an additional interest rate of 0.75% p.a. to super senior citizens (FD depositors aged 80 years and above) for tenures of up to 5 years and 1% additional interest rate on deposits above 5 years to 10 years.
Types of Best Fixed Deposit Rates in India 2026
Different fixed deposit schemes cater to the requirements of different customer segments. To help you make the most of your savings, below are the types of fixed deposits.
- Standard Fixed Deposit can be opened by resident indians, sole proprietorship firms, partnership firms, limited companies, hindu undivided families, etc. Its interest rates are usually higher than the savings account interest rates.
- Tax-saving FD can be opened by resident individuals and hindu undivided families only. It allows depositors to claim tax deduction of up to Rs. 1.5 lakh on the principal component under Section 80C. It also has a lock-in period of 5 years.
- Floating Rate Fixed Deposit has its interest rate linked to a reference rate, like the RBI’s repo rate and T-bill rate. Thus, its returns depend on the movement in the reference rate.
- Flexi FD allows depositors to link their FDs with their savings or current account. In case of fund deficit in the linked savings or current account, the linked deposit amount can be partially broken and the remaining deposit amount will continue to earn the FD interest rate. It offers higher liquidity and flexibility than normal FDs and higher interest rates than regular savings accounts.
- Senior Citizen Fixed Deposit can be opened by individuals aged 60 years and above. Interest rates offered on this scheme are usually 50 bps higher than regular Best Fixed Deposit Rates in India 2026. Some banks/ NBFCs under special schemes and for specific tenures also offer additional interest rates of 0.2%- 0.3% over and above the senior citizen Best Fixed Deposit Rates in India 2026. Additionally, some banks/ NBFCs also offer additional interest rates to super senior citizens (age 80 years and above).
- Corporate Fixed Deposit is offered by Housing Finance Companies (HFCs) and Non-Banking Financial Companies (NBFCs) and usually has interest rates higher than bank FD interest rates.
- Cumulative FD gives you the benefit of compounding by adding the interest earnings added to the principal amount, giving you the benefit of compounding.
- In Non-cumulative FD, the interest earned on the investment amount is payable at regular intervals, i.e., monthly, quarterly, half-yearly or annually.
- Callable FD allows depositors to withdraw their fixed deposit before it reaches maturity. However, depositors might have to pay a penalty on pre-closing this type of FDs.
- Non-callable FD is opposite to callable fixed deposits in a sense that the depositors can withdraw their investments only at maturity. Also, the interest rates offered on non-callable FDs are usually higher than the interest rates offered on callable FDs.
Types of FD for Non-Resident Indians (NRIs)
- NRE (Non-Resident External) Deposits is for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) who wish to deposit their foreign earnings.
- NRO (Non-Resident Ordinary) Deposit is for NRIs and PIOs who want to deposit their income earned through Indian sources.
- FCNR (Foreign Currency Non-Resident) Deposit is for NRI and PIO customers who want to deposit their funds generated/earned overseas.
- RFC (Resident Foreign Currency) Deposit allows NRIs and PIOs, who after being a resident outside India for a year or more are returning to India, to open fixed deposits in foreign currencies with banks in India. The primary objective is to allow such depositors to earn higher returns, without any exchange rate risk. These deposits can only be opened with funds generated/earned overseas in foreign currencies.
Benefits of Best Fixed Deposit Rates in India 2026
- Guaranteed returns
- Up to Rs. 5 lakh insured under DICGC
- Tax benefit of up to Rs. 1.5 lakh under Section 80C on opening tax-saving FDs
- Use as collateral to avail loan or secured credit cards
Features of Best Fixed Deposit Rates in India 2026 (FD)
The common set of features of a fixed deposit is as below:
- Low Deposit Amount: The minimum deposit amount required to book an FD is Rs 100, which may vary across banks and NBFCs.
- Fixed Tenure: Choose FD tenure anywhere from 7 days to 10 years.
- Fixed Interest Rates: The interest rates remain same till the maturity or renewal of the FD. However, some banks also offer floating fixed deposit schemes wherein the Best Fixed Deposit Rates in India 2026 are linked to external benchmark and thus, may change as per the movements in the linked rates. For instance, the Best Fixed Deposit Rates in India 2026 SBI offers Floating Rate Bulk Term Deposit scheme wherein the fixed deposit interest rates are linked to repo rate.
- Multiple Interest Payout Options: Choose from multiple interest payout options at monthly, quarterly, half-yearly or yearly frequency or opt for cumulative option wherein the interest earned on the principal is reinvested to give you the benefit of compounding.
- Premature Withdrawal: Premature withdrawal is allowed, subject to penal interest rates
- Loan Against FD: Leverage FDs to avail loans while earning interest on the pledged FDs.
Eligibility Criteria – Best Fixed Deposit Rates in India 2026
- Residents
- Hindu Undivided Families (HUFs)
- Sole Proprietorship Firms
- Partnership Firms
- Limited Companies
- Trust Accounts, etc.
Documents Required to Open Best Fixed Deposit Rates in India 2026
Usually, customers book FD in the bank where they already maintain a bank account. As banks already have the KYC details of their existing customers, new documents might not be needed to open a fixed deposit account.
However, new customers will be required to furnish their identity proof and address proof such as
- Aadhaar Card,
- PAN Card,
- Driver’s License,
- Passport, etc.
For KYC (Know Your Customer) verification and recent coloured passport-sized photographs to open an FD account in a new bank.
How to Open a Best Fixed Deposit Rates in India 2026 Offline?
To open a fixed deposit offline, customers can visit the banks and deposit taking NBFCs or contact their business correspondents, agents or employees.
How to Open an Best Fixed Deposit Rates in India 2026 Online?
Customers can open a fixed deposit account online through the bank’s net banking platform or through its mobile application such as YONO SBI.
How to Choose the Right Best Fixed Deposit Rates in India 2026?
To choose the right fixed deposit scheme, know your investment horizon and liquidity requirements. When making the choice, consumers should also compare prevailing FD interest rates across banks and check for interest pay-out options, special interest schemes and additional facilities such as secured credit cards, loan against FD, sweep-in and sweep-out facility, etc.
Why Invest in Best Fixed Deposit Rates in India 2026?
1. Guaranteed Returns on Investment Best Fixed Deposit Rates in India 2026
FD interest rates booked at the time of opening an fixed deposit account remains the same till its maturity, regardless of any changes in the banks’ FD card rates in the interim. For instance, if an individual opens a bank fixed deposit of 3 years tenure at 6% p.a., the interest rate will remain the same till the completion of its 3 years tenure. This offers a high degree of income certainty in FDs, even higher than those offered by most small saving schemes.
2. Capital Protection Best Fixed Deposit Rates in India 2026
Fixed deposits booked with the scheduled banks are covered under the deposit insurance program of DICGC, a subsidiary of RBI. The insurance cover is applicable on cumulative bank deposits, which include fixed deposits, savings account, recurring deposits and current account, of up to Rs 5 lakh per bank per depositor, in case of bank failure.
3. Tax Deduction under Section 80C Best Fixed Deposit Rates in India 2026
Many banks and NBFCs offer 5-year tax-saving FD scheme with lock-in period of 5 years. The principal component of up to Rs 1.5 lakh each financial year can be claimed as tax deductions u/s 80C of the Income Tax Act. However, the interest component is taxed as per the tax slab of the depositor.
4. Loan Against Best Fixed Deposit Rates in India 2026
Depositors can leverage their FDs to avail loans. Loans against FD are usually offered in the form of overdraft facility, wherein the credit limit is sanctioned on the basis of the fixed deposit amount pledged as collateral and the interest is also levied only on the amount drawn till its repayment. Moreover, the borrower continues to earn interest on the pledged FDs during the loan tenure. Withdrawals can be made anytime up to the credit limit from their overdraft account and repay it as per their repayment capacity. These features of loans against FDs make them an excellent tool for mitigating frequent liquidity and cash flow mismatches, without requiring prematurely closing FDs and incurring premature withdrawal penalties.
5. Credit Card Against Best Fixed Deposit Rates in India 2026
Depositors having nil or low credit score can leverage their Fixed Deposits to avail secured credit cards. As the transactions made through secured cards are reported to the credit bureaus, disciplined usage of secured credit cards can help in building or improving one’s credit score. Such cards can also be helpful for those who fail to avail regular credit cards due others reasons like inadequate income, unserviceable location, employer’s profile or job profile, in partnership with IDFC FIRST Bank, issues credit card against FD – IDFC FIRST EA₹N Credit Card.
It’s a virtual secured credit card issued against fixed deposits opened with IDFC FIRST Bank. The card is a credit score builder best suited for consumers lacking credit access due to ‘no’ or ‘damaged’ credit history. Other features available on this credit card includes 100% credit limit on the fixed deposit amount and various cashback benefits including discounts on movie tickets, 1,500+ restaurants and EMI options for UPI transactions. This credit card also offers personal accident cover, lost card liability and roadside assistance, ensuring comprehensive protection and convenience.
FAQs on Best Fixed Deposit Rates in India 2026
Q. What is cumulative fixed deposit interest rate?
Ans. In a cumulative fixed deposit, interest is compounded over the investment period and paid at maturity. This approach maximises your returns by earning interest on previously accrued interest.
Q. Can FD depositors get interest on a monthly basis?
Ans. You can choose to receive interest payout every month by selecting the payout mode as monthly at the time of opening the non-cumulative fixed deposit account.
Q. How to calculate fixed deposit interest rate?
Ans. The FD annual interest rate is calculated by considering factors such as investment amount, period of investment, the payout option and the type of deposit scheme you choose to invest in. You can use the FD interest calculator to find the interest earned.
Q. Can I take a loan against FD?
Ans. Loan against FD is an important feature of fixed deposits and thus, most of the banks do offer this option to their customers. You can get a loan of up to 90% of the deposit amount (may vary as per your bank).
Q. Can I prematurely withdraw a tax saving FD?
Ans. No, the tax saving fixed deposit comes with a lock-in period of 5 years. This can be prematurely liquidated in case of the death of the FD holder/primary account holder.
Q. What is the minimum amount required to invest in a tax-saving FD?
Ans. You can start investing from Rs. 100 in a tax saving fixed deposit. However, most of the banks have kept Rs. 1,000 as the minimum deposit amount. It can go up to Rs. 1.5 lakh.
