For investors seeking optimal returns on their fixed deposits (FDs) in 2026, a comparison of leading public sector banks—State Bank of India (SBI), Bank of Baroda (BoB), and Canara Bank—reveals varying interest rates across different tenures and special schemes. While all three banks offer an identical 6.25% on one-year FDs for regular customers, significant differences emerge in longer and specialized deposit products.
Bank of Baroda Offers Top Rate on Special Tenure
Bank of Baroda currently provides the highest interest rate for regular customers with its 555-day Golden Goal Deposit Scheme, offering an attractive 6.75%. This special tenure deposit positions BoB ahead of its competitors for this specific period.
For standard tenures below ₹3 crore, BoB offers 6.25% for one, two, and three years. Rates slightly increase to 6.30% for deposits spanning three to five years. Beyond the Golden Goal scheme, BoB also features a 444-day Square Drive Deposit Scheme at 6.45%.
Canara Bank's Competitive Special Deposits
Canara Bank maintains competitive rates, particularly within its special tenure offerings. Its 555-day deposit scheme offers regular customers 6.60%, slightly lower than BoB but still robust. The bank's 444-day deposit matches BoB's rate at 6.45%.
For more conventional deposits, Canara Bank offers 6.25% across various terms, including one year to one year and three months, as well as two, three, and five-year tenures.
SBI's Retail Rates and Bulk Deposit Changes
State Bank of India (SBI) has recently revised its interest rates for domestic bulk fixed deposits of ₹3 crore and above, implementing cuts of up to 25 basis points on shorter tenures effective August 15, 2026. However, its retail FD rates for deposits below ₹3 crore remain unchanged and competitive for longer terms.
For regular retail customers, SBI offers 6.25% on one-year FDs. For two to three years, the rate is marginally higher at 6.40%, and for three to five years, it stands at 6.30%. The longest tenure, five to ten years, offers 6.05%.
Senior Citizen Benefits
All three banks provide additional interest rates for senior citizens, typically an extra 50 basis points over the standard rates, though the premium can vary by tenure and bank. For instance:
- Bank of Baroda: Senior citizens can earn up to 7.25% on the 555-day Golden Goal Deposit Scheme.
- Canara Bank: Senior citizens receive 7.10% on their 555-day special deposit and 6.95% on the 444-day deposit.
- SBI: Offers an additional 50 basis points across its applicable long-term retail FD rates for senior citizens.
Overall Comparison for Regular Investors
When comparing the three public-sector banks for regular investors:
- One-year: All three banks offer 6.25%.
- Two- and Three-years: SBI slightly leads with 6.30% compared to 6.25% from BoB and Canara Bank.
- Four- and Five-years: SBI and BoB offer 6.30%, while Canara Bank provides 6.25%.
- Special Tenures (555-day): Bank of Baroda's 6.75% is the highest, followed by Canara Bank's 6.60%.
Therefore, Bank of Baroda offers the highest overall rate for regular customers via its special 555-day scheme, while SBI remains competitive on several standard longer-term retail deposits. Canara Bank also presents strong options, particularly in its special tenure deposits.