Compare interest rates across major banks and small finance banks โ updated June 2026
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Senior Citizen Bonus |
|---|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 6.60% | 7.25% | 7.25% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.25% | 7.00% | 6.90% | +0.50% |
| Axis Bank | 6.70% | 7.10% | 7.10% | 7.00% | +0.75% |
| Kotak Mahindra Bank | 7.10% | 7.10% | 7.10% | 6.20% | +0.50% |
| Punjab National Bank | 6.80% | 6.80% | 6.50% | 6.50% | +0.50% |
| Bank of Baroda | 6.85% | 7.15% | 6.50% | 6.50% | +0.50% |
| Canara Bank | 6.85% | 6.85% | 6.70% | 6.70% | +0.50% |
| IDFC First Bank | 7.25% | 7.25% | 7.25% | 7.25% | +0.50% |
| IndusInd Bank | 7.50% | 7.25% | 7.25% | 7.25% | +0.50% |
Small Finance Banks offer higher interest rates but have DICGC insurance only up to โน5 lakh per depositor.
| Bank | Best Rate | Best Tenure | Senior Citizen Rate | DICGC Insured |
|---|---|---|---|---|
| Unity Small Finance Bank | 9.00% | 1001 days | 9.50% | โ Yes (up to โน5L) |
| Suryoday Small Finance Bank | 8.65% | 2โ3 years | 9.15% | โ Yes |
| Utkarsh Small Finance Bank | 8.50% | 2 years | 9.00% | โ Yes |
| ESAF Small Finance Bank | 8.50% | 2 years | 9.00% | โ Yes |
| Jana Small Finance Bank | 8.25% | 1โ2 years | 8.75% | โ Yes |
| NorthEast Small Finance Bank | 8.00% | 1โ3 years | 8.50% | โ Yes |
Split your corpus into FDs of different tenures (1Y, 2Y, 3Y). Renew them as they mature to benefit from rate changes.
Banks offer 0.50โ0.75% extra to senior citizens (60+). If investing for parents, open FD in their name for better returns.
Each bank insures deposits up to โน5 lakh per depositor. Spread large amounts across multiple banks for full safety.
FD interest is taxable as per your income slab. Submit Form 15G/15H if income is below taxable limit to avoid TDS deduction.
Most banks auto-renew FDs at the prevailing rate โ which may be lower. Set a reminder to review on maturity.
Online/digital FDs often offer 0.10โ0.25% higher rates than branch FDs. Use net banking or a broker platform to book.