Fixed deposits (FDs) continue to be among the most preferred investment options for Indian savers, thanks to guaranteed returns and capital safety. With interest rates remaining attractive, several banks are offering returns of up to 8.1% per annum, making FDs a compelling choice for conservative investors.

According to data updated as of June 17, 2026, scheduled banks are offering FD rates ranging from 2.5% to 8.1% for regular depositors across tenures spanning seven days to 10 years. Small finance banks continue to dominate the rate charts, followed by select private sector lenders.

Small finance banks

Among scheduled small finance banks, Suryoday Small Finance Bank and Utkarsh Small Finance Bank are currently offering the highest FD interest rate of 8.1% per annum.

Shivalik Small Finance Bank and Equitas Small Finance Bank follow closely, offering up to 8% interest. Jana Small Finance Bank offers a maximum rate of 7.77%, while ESAF Small Finance Bank offers up to 7.75%.

Ujjivan Small Finance Bank offers up to 7.55%, while AU Small Finance Bank's highest slab rate stands at 7.4%.

Private banks

Among private sector lenders, DCB Bank offers one of the highest rates at 7.5%, followed by IDFC FIRST Bank and CSB Bank at 7.35%.

Yes Bank, City Union Bank, Dhanlaxmi Bank and Tamilnad Mercantile Bank offer rates of up to 7.25%, while Jammu & Kashmir Bank offers up to 7.3%.

Large private lenders continue to offer comparatively lower rates. HDFC Bank and ICICI Bank offer a maximum FD rate of 6.5%, while Axis Bank's highest slab rate stands at 6.45%.

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PSU banks

Public sector banks continue to offer relatively moderate rates. Among them, Punjab & Sind Bank provides the highest interest rate of 6.85% on a special tenure deposit.

Indian Bank offers up to 6.8%, followed by Bank of Baroda at 6.75%. Bank of India offers a maximum of 6.7%, while Union Bank of India and Bank of Maharashtra offer up to 6.65%.

India's largest lender, State Bank of India (SBI), currently offers a maximum FD rate of 6.45%.

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Top banks offering highest FD rates

Among banks offering the highest fixed deposit rates, Suryoday Small Finance Bank and Utkarsh Small Finance Bank lead the chart with interest rates of up to 8.10% per annum. They are followed by Shivalik Small Finance Bank and Equitas Small Finance Bank, which offer up to 8.00% per annum.

Jana Small Finance Bank provides a maximum rate of 7.77%, while ESAF Small Finance Bank offers 7.75%. DCB Bank and Unity Small Finance Bank offer up to 7.50% each, followed by AU Small Finance Bank at 7.40% and IDFC FIRST Bank at 7.35% per annum.

While higher rates can boost returns, financial planners advise investors to also consider factors such as deposit insurance, the bank's financial strength and their own liquidity requirements before locking money into long-term fixed deposits.

Senior citizens get additional benefits

Most banks provide additional interest to senior citizens over and above regular FD rates. The extra benefit generally ranges from 0.25 percentage points to 0.75 percentage points.

Bandhan Bank and Yes Bank offer additional interest of up to 0.75 percentage points to senior citizen depositors, while most small finance banks provide an additional 0.5 percentage point.

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Published on: Jun 19, 2026 9:50 AM IST