Putting your money in a bank fixed deposit (FD) is still one of the safest ways to grow your savings. You know exactly how much money you will get at the end of the time period. There is no up and down like in the stock market. But here is the thing—not all banks give you the same interest rate. Some banks offer much higher rates than others.
This article will help you find the best fixed deposit rates in India right now. We will look at rates for regular people, for older citizens, and for different time periods like 6 months or 5 years. By the time you finish reading, you will know which bank is best for a fixed deposit for your needs.
Why Fixed Deposit Rates Keep Changing
Before we look at the numbers, let us understand why bank FD rates go up and down. The main reason is the Reserve Bank of India (RBI). The RBI decides the repo rate. This is the rate at which RBI gives money to all banks. When RBI increases this rate, banks also increase their FD rates. When the RBI cuts this rate, banks cut their FD rates.
In the year 2025, RBI cut the repo rate by 1.25 percent. This means rates came down. But since then, RBI has kept the rate steady. In April 2026, RBI again kept the rate at 5.25 percent. This is good news for people who want to open an FD. It means rates are not falling further right now. Some experts think rates may even go up in the coming months. If that happens, you may get even better returns on your fixed deposit.
You may also read :- Savings Account or Micro-Investing? An Indian Professional’s 2026 Guide
What Are the Best Fixed Deposit Rates in India Right Now?
Let me give you a clear picture of the best fixed deposit rates in India for different types of banks. We will look at three kinds of banks—public sector banks (government banks), private sector banks, and small finance banks.
Public Sector Bank FD Rates (Government Banks)
Government banks are trusted by most people. These banks have a very high safety level. Your money is completely safe here. Here are the top government banks and their best FD rates:
For 1 year FD:
- Indian Overseas Bank gives 6.50 percent
- Union Bank of India gives 6.30 percent
- Bank of India gives 6.25 percent
- Canara Bank gives 6.25 percent
- Punjab National Bank gives 6.25 percent
For a 3-year FD:
- Punjab National Bank gives 6.30 percent
- State Bank of India (SBI) gives 6.30 percent
- Bank of Baroda gives 6.25 percent
- Bank of India gives 6.25 percent
- Canara Bank gives 6.25 percent
For a 5-year FD:
- Bank of Baroda gives 6.30 percent
- Canara Bank gives 6.25 percent
- Indian Overseas Bank gives 6.10 percent
- Punjab National Bank gives 6.10 percent
The Bank of India recently increased their FD rates. They are now offering 6.50 percent on 1-year-to-less-than-2-year deposits. For 2 years to less than 3 years, they give 6.60 percent. And for exactly 3 years, they give 6.70 percent. This is a good increase for people who want to put money away for a few years.
Private Sector Bank FD Rates
Private banks often give slightly better rates than government banks. They also have good safety and good service. Here are the top private bank rates:
For 1 year FD:
- SBM Bank India gives 7.10 percent
- Bandhan Bank gives 7.00 percent
- RBL Bank gives 7.00 percent
- DCB Bank gives 6.90 percent
- Tamilnad Mercantile Bank gives 6.80 percent
For a 3-year FD:
- Bandhan Bank gives 7.25 percent
- RBL Bank gives 7.20 percent
- SBM Bank India gives 7.10 percent
- DCB Bank gives 7.00 percent
- IDFC FIRST Bank gives 7.00 percent
For a 5-year FD:
- DCB Bank gives 7.15 percent
- IDFC FIRST Bank gives 7.00 percent
- SBM Bank India gives 7.00 percent
- YES Bank gives 6.75 percent
As you can see, private banks are offering higher FD interest rates compared to government banks. But the difference is not very big. Private banks give about 0.5 to 0.7 percent more than government banks for most time periods.
Small Finance Bank FD Rates
Small finance banks give the best fixed deposit rates in India overall. But you should know that these banks are smaller than big government banks. However, your money up to 5 lakh rupees is safe because of deposit insurance. Here are their top rates:
For 1 year FD:
- Suryoday Small Finance Bank gives 7.25 percent
- Ujjivan Small Finance Bank gives 7.25 percent
- Jana Small Finance Bank gives 7.00 percent
- Equitas Small Finance Bank gives 6.90 percent
For a 3-year FD:
- Jana Small Finance Bank gives 7.50 percent
- slice Small Finance Bank gives 7.50 percent
- Utkarsh Small Finance Bank gives 7.50 percent
- Suryoday Small Finance Bank gives 7.25 percent
- Ujjivan Small Finance Bank gives 7.20 percent
For a 5-year FD:
- Suryoday Small Finance Bank gives 7.90 percent
- Jana Small Finance Bank gives 7.77 percent
- Ujjivan Small Finance Bank gives 7.20 percent
- Equitas Small Finance Bank gives 7.00 percent
Unity Small Finance Bank is also offering very high rates. They give 9.00 percent for regular people and 9.50 percent for senior citizens on 1,001-day deposits. That is one of the highest FD interest rates you can find anywhere in India right now.
Fixed Deposit Rates in India for 6 Months
Sometimes you do not want to lock your money for a very long time. Six months is a good time period. It is not too short and not too long. Let me tell you the fixed deposit rates in India for 6 months.
Most big banks give around 6 percent for 6-month FDs. But the exact rate depends on which bank you choose. For a 6-month FD, you can expect:
- Government banks give between 5.5 and 6 percent
- Private banks give between 6 and 6.5 percent
- Small finance banks give between 6.5 and 7.5 percent
The rates for shorter time periods are always lower than longer time periods. Banks give you more interest when you keep your money with them for a longer time. So a 6-month FD will give you less than a 1-year FD. But if you need your money back sooner, this is a good choice.
Highest Fixed Deposit Interest Rates for Senior Citizens
Senior citizens get special treatment from all banks. They get extra interest on their fixed deposits. This extra amount is usually 0.50 percent more than regular rates. Sometimes it goes up to 0.75 or even 0.90 percent extra.
If you are looking for the highest fixed deposit interest rates for senior citizens, here is what you can get:
Bank of India is offering senior citizens up to 7.45 percent on 3-year FDs. For super-senior citizens (people above 80 years), they give even more. Super senior citizens can get 7.60 percent on 3-year deposits.
Other banks also have very good offers:
- State Bank of India gives senior citizens up to 7.82 percent on special 400-day deposits
- Canara Bank gives 7.98 percent to seniors on 444-day deposits
- Punjab and Sind Bank gives 7.90 percent to seniors on 444-day deposits.
- Central Bank of India gives 7.60 percent to seniors on 444-day deposits.
But small finance banks give even higher rates. Unity Small Finance Bank gives senior citizens 9.50 percent on 1,001-day FDs. ESAF Bank gives senior citizens 9.00 percent on 2- to 3-year FDs. Equitas Small Finance Bank gives 9.00 percent to seniors on 888-day FDs. These are the best fixed deposit rates for senior citizens available in the market today.
One important thing to remember. The extra benefit for senior citizens is only for people who are 60 years or older. Some banks also have a category called "super senior citizens" for people 80 years or older. They get even more extra interest.
Best Fixed Deposit Rates for Senior Citizens Compared
Let me give you a simple comparison. If a regular person gets 7 percent on an FD, here is what different senior citizens get:
- Regular senior citizen (60 to 80 years) gets about 7.5 to 7.75 percent
- Super senior citizen (above 80 years) gets about 7.6 to 7.9 percent
This extra interest makes a big difference over time. For example, if you put 10 lakh rupees for 5 years at 7 percent, you will get about 4 lakh rupees as interest. But at 7.5 percent, you will get about 4.5 lakh rupees. That is 50,000 rupees more. So always check the senior citizen rate before opening an FD.
All Bank FD Interest Rate Lists
Making a full all-bank FD interest rate list would take many pages. But let me give you a simple list of the biggest banks and what they offer:
State Bank of India (SBI):
Regular rates from 3.05 to 6.40 percent. Senior citizen rates up to 7.05 percent. Their special 400-day deposit gives 7.29 percent for regular and 7.82 percent for seniors.
HDFC Bank:
Regular rates from 2.75 to 6.50 percent. Senior citizen rates up to 7.00 percent. Their 55-month deposit gives 7.25 percent for regular and 7.75 percent for seniors.
ICICI Bank:
Regular rates from 2.75 to 6.50 percent. Senior citizen rates up to 7.10 percent. Their 18-month to 2-year deposit gives 7.10 percent for regular and 7.60 percent for seniors.
Punjab National Bank (PNB):
Regular rates up to 6.60 percent. Senior citizen rates up to 7.10 percent. Their special 444-day deposit gives 7.25 percent for regular and 7.75 percent for seniors.
Bank of Baroda:
Regular rates up to 6.50 percent. Senior citizen rates up to 7.15 percent. Their special 399-day deposit gives 7.25 percent for regular and 7.75 percent for seniors.
Axis Bank:
Regular rates from 3.00 to 6.45 percent. Senior citizen rates up to 7.20 percent.
YES Bank:
Regular rates from 3.25 to 7.00 percent. Senior citizen rates up to 7.75 percent. Their 18- to 24-month deposit gives 7.75 percent for regular and 8.25 percent for seniors.
IndusInd Bank:
Regular rates up to 7.50 percent. Senior citizen rates up to 8.25 percent on 1- to 2-year deposits.
IDFC FIRST Bank:
Regular rates up to 7.50 percent. Senior citizen rates up to 8.00 percent on 1-year, 1-day to 550-day deposits.
RBL Bank:
Regular rates up to 7.80 percent. Senior citizen rates up to 8.30 percent on 15 to 24 month deposits.
DCB Bank:
Regular rates up to 7.75 percent. Senior citizen rates up to 8.50 percent on 25 or 37-month deposits.
Small Finance Banks (Highest Rates):
- Unity Small Finance Bank: Up to 7.85%, Up to 9.50%
- ESAF Small Finance Bank: Up to 8.25%, Up to 8.75%
- Utkarsh Small Finance Bank: Up to 8.10%, Up to 8.60%
- Jana Small Finance Bank Up to 7.77% Up to 8.00%
- Equitas Small Finance Bank: Up to 7.40%, Up to 7.90%
- Ujjivan Small Finance Bank: Up to 7.45%, Up to 7.95%
- AU Small Finance Bank: Up to 7.35%, Up to 7.85%
- Capital Small Finance Bank: Up to 7.15%, Up to 7.65%
This all-bank FD interest rate list shows you that small finance banks give the highest returns. But remember the safety aspect. Always check if the bank has deposit insurance.
Which Bank is Best for Fixed Deposit
Now let us answer the most important question. Which bank is best for fixed deposit? The answer depends on what matters most to you. Let me break it down into three cases.
If You Want Maximum Safety
If you cannot take any risk at all, choose a big government bank. State Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank, or Bank of India are all excellent choices. These banks are owned by the government of India. Your money is 100 percent safe here. You will get rates around 6 to 6.5 percent on most deposits. For senior citizens, it goes up to 7 to 7.5 percent.
If You Want Good Safety and Better Returns
If you want better returns but still want safety, choose a big private bank. HDFC Bank, ICICI Bank, Axis Bank, or YES Bank are good options. These banks are also very safe. They are large banks with many branches. They offer rates around 6.5 to 7 percent for regular people. Senior citizens get 7 to 7.75 percent.
If You Want the Highest Returns
If you want the best fixed deposit rates in India and are willing to choose a smaller bank, go with a small finance bank. Unity Small Finance Bank, Suryoday Small Finance Bank, Jana Small Finance Bank, or Equitas Small Finance Bank give the highest rates. You can get 8 to 9 percent as a regular person and 8.5 to 9.5 percent as a senior citizen.
Things to Check Before Opening an FD
Before you open a fixed deposit, check these five things:
1. Check the exact interest rate for your time period. Banks offer different rates for different time periods. A 1-year FD may give 6.5 percent, but a 2-year FD may give 6.8 percent. Always look at the rate for your exact time period.
2. Check the senior citizen rate if applicable. If you or your family member is above 60 years old, always ask for the senior citizen rate. Many banks do not tell you about this automatically.
3. Check if there is a special scheme. Many banks run special FD schemes for specific time periods like 400 days or 444 days. These often give higher rates than regular FDs. For example, SBI gives 7.29 percent on 400 days but only 6.25 percent on regular 1-year deposits.
4. Check the premature withdrawal rule. Life is uncertain. You may need your money before the FD matures. Most banks allow you to take money out early. But they will charge a penalty. This penalty is usually 0.5 to 1 percent of the interest. Some banks do not give you any interest if you withdraw too early. Always read this rule carefully.
5. Check if TDS will be cut from your interest. Banks cut tax (TDS) if your total interest from all FDs in one year is more than 40,000 rupees (50,000 for senior citizens). If you do not want the bank to cut tax, you can give them Form 15G or 15H. This form says your total income is not taxable.
How to Get the Best Returns on Your FD
Tip 1: Choose the right time period. Do not just put money for 5 years thinking that longer always means higher returns. Look at the rate chart of your bank. Sometimes a 2-year FD gives more than a 5-year FD. Compare and choose.
Tip 2: Use a senior citizen family member. If your mother or father is a senior citizen, open the FD in their name. You can be the joint holder. This way you get the higher senior citizen rate while still having access to the money.
Tip 3: Split your money across banks. Do not put all your savings in one bank. Put some in a government bank for safety. Put some in a small financial bank for higher returns. This way you get both safety and good returns.
Tip 4: Look for special festive offers. Banks often increase their FD rates during festival seasons. Diwali, Dussehra, and New Year are times when banks launch special high-rate FDs. If you are planning to open an FD, wait for these periods.
Tip 5: Compare online before going to the bank. Use websites that show FD rates of all banks. See which bank is giving the highest rate for your time period. Then go to that bank. Do not just open an FD in your regular bank without checking other options.
Final Words
Finding the best fixed deposit rates in India takes a little bit of research. But it is worth the effort. A difference of even 0.5 percent can give you thousands of extra rupees over time.
For most people, here is my simple advice. Put half of your FD money in a large government bank like SBI or Bank of Baroda. Put the other half in a small finance bank like Unity or Suryoday to get higher returns. And if you have a senior citizen in your family, always use their name to open the FD.
Always remember to keep your total deposit in any single small finance bank under 5 lakh rupees. This way your money is fully insured even if the bank faces problems.
