As of June 2026, fixed deposits (FDs) continue to be a preferred investment choice for many, particularly those seeking capital protection and assured returns. Across India's scheduled banks, interest rates for general citizens currently range from 2.50% to a high of 8.10% for various tenures, from seven days to ten years.
Small Finance Banks Lead the Way
Small finance banks consistently offer the most competitive interest rates on fixed deposits. Suryoday Small Finance Bank and Utkarsh Small Finance Bank are at the forefront, both providing up to 8.10% on select deposit schemes. Other top performers in this segment include Jana Small Finance Bank, Equitas Small Finance Bank, and Shivalik Small Finance Bank, all offering up to 8.00% interest.
Top 10 Banks for Highest FD Rates (General Public)
- Suryoday Small Finance Bank: 8.10%
- Utkarsh Small Finance Bank: 8.10%
- Jana Small Finance Bank: 8.00%
- Equitas Small Finance Bank: 8.00%
- Shivalik Small Finance Bank: 8.00%
- SBM Bank: 7.85%
- Ujjivan Small Finance Bank: 7.80%
- ESAF Small Finance Bank: 7.75%
- DCB Bank: 7.50%
- Unity Small Finance Bank: 7.50%
Best Rates for Shorter and Medium Tenures
For investors looking at specific tenures, certain banks stand out:
Top 1-Year FD Rates
- Unity Small Finance Bank: 7.50%
- Suryoday Small Finance Bank: 7.25%
- Ujjivan Small Finance Bank: 7.25%
- Equitas Small Finance Bank: 7.10%
- SBM Bank: 7.10%
Top 3-Year FD Rates
- Jana Small Finance Bank: 8.00%
- Utkarsh Small Finance Bank: 7.50%
- Shivalik Small Finance Bank: 7.50%
- AU Small Finance Bank: 7.40%
- IDFC FIRST Bank: 7.35%
Public and Private Sector Bank Offerings
While typically not matching the peak rates of small finance banks, public sector banks remain a popular choice due to their extensive networks and perceived stability.
Top Public Sector Banks for FD Rates
- Bank of India: 6.85%
- Punjab & Sind Bank: 6.85%
- Indian Bank: 6.80%
- Bank of Baroda: 6.75%
- Central Bank of India: 6.70%
Several private sector banks also offer competitive rates, often higher than their larger public sector counterparts. IDFC FIRST Bank and CSB Bank, for instance, offer up to 7.35%.
Top Private Sector Banks for FD Rates
- IDFC FIRST Bank: 7.35%
- CSB Bank: 7.35%
- Jammu & Kashmir Bank: 7.30%
- Yes Bank: 7.25%
- City Union Bank: 7.25%
- Dhanlaxmi Bank: 7.25%
Enhanced Returns for Senior Citizens
Most banks provide an additional interest rate benefit to senior citizens, typically an extra 0.50 percentage point over standard rates. Some institutions, like Bandhan Bank and Yes Bank, extend this benefit further, offering up to 0.75 percentage point more, allowing retirees to secure even better returns on their fixed deposits.
Important Considerations for FD Investors
While attractive interest rates are a key factor, investors should also consider other crucial aspects before committing to an FD. These include the bank's overall financial strength, the chosen tenure's alignment with liquidity needs, and the coverage provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Deposits up to ₹5 lakh per depositor per bank are insured by DICGC. For larger sums, diversifying deposits across multiple banks can help ensure maximum insurance coverage while still benefiting from competitive rates.