Fixed deposit rates vary more than most people expect — not just bank to bank, but tenure to tenure within the same bank. Below is a snapshot of where major Indian banks stand as of September 2026, so you can compare before you book.
Rates last checked : 08/09/2026— always confirm the exact rate with your bank before investing, since these shift regularly.
State Bank of India’s general FD rates currently run up to roughly 6.45–6.5% for regular depositors, with senior citizens getting an additional bump — SBI’s senior citizen rates for larger deposits have touched around 6.75–7.05% on select tenures recently. SBI’s best rates tend to cluster around the 1–2 year tenure band.
HDFC Bank’s FD rates have recently been quoted around 7.4% at the top end for general depositors, with the usual senior citizen premium on top. As with most private banks, the highest rates tend to sit in the medium-term (1–3 year) tenure range rather than the shortest or longest terms.
ICICI Bank’s fixed deposit rates currently range from about 2.75% to 6.5% depending on tenure, with senior citizens receiving an additional rate on top of the standard slab.
Among private banks, Bandhan Bank has recently offered some of the more competitive rates — up to around 7.45% for a 2–3 year tenure, among the higher rates currently available from a scheduled bank.
If you’re comfortable with a small finance bank instead of a traditional private or PSU bank, rates are noticeably higher — Suryoday Small Finance Bank, for instance, has recently offered around 8.25% for a 5-year general deposit and 8.5% for senior citizens. Small finance banks are still covered by DICGC deposit insurance up to ₹5 lakh per depositor per bank, same as any other bank, but it’s worth understanding the difference in institutional risk profile before choosing one purely for the higher rate.
Public sector banks generally offer somewhat lower headline rates than private banks and small finance banks, though the gap has narrowed in recent years. Punjab & Sind Bank has recently stood out among PSU banks with rates reported up to around 6.85%. Check each bank’s official rate card for exact current figures, since PSU rates tend to move in lockstep with RBI repo rate changes.
Post Office Time Deposits are a popular alternative to bank FDs, particularly for conservative savers, since they carry a sovereign guarantee. Rates are revised quarterly by the government — check the current quarter’s notified rate before comparing against bank FDs, since post office rates don’t move on the same schedule as bank rates.
A reader flagged a genuinely underused category worth adding here: several state governments run their own NBFCs that accept public fixed deposits, often at rates well above regular banks. Tamil Nadu and Kerala both have well-established examples:
A few states appear to run similar corporations, though coverage and terms vary — check specifically for your state rather than assuming one exists.
The important risk distinction: these are NBFC deposits, not bank deposits — they are not covered by DICGC deposit insurance the way a bank FD is. Safety instead depends on the specific corporation’s financial health and its state government backing, which varies in how explicit it is (Kerala’s KTDFC states a specific government guarantee amount; the Tamil Nadu corporations are described as government-owned but without the same explicit guarantee language). Liquidity is also more restricted — premature withdrawal is usually allowed but may involve a lock-in period, and loans against the deposit are typically available only after a few months. Treat the higher rate as compensation for real, distinct risk and liquidity trade-offs, not a free lunch over a bank FD.
A few consistent patterns worth understanding:
Chasing the single highest rate across banks means locking your entire amount into one deposit, at one bank, for one tenure — leaving you either stuck if you need the money early, or missing out if rates rise afterward.
Use our FD Laddering Calculator to see how splitting your amount across several staggered deposits — potentially across a couple of the banks above — balances a strong blended rate with the flexibility of having a portion mature every year.
Which bank has the highest FD interest rate right now? Small finance banks generally offer the highest published rates, sometimes several percentage points above large private and PSU banks — though this comes with a different institutional risk profile, even with the same DICGC insurance coverage. Among larger scheduled banks, rates shift often enough that it’s worth checking current numbers rather than relying on last quarter’s “highest rate” ranking.
Do FD rates change often? Yes — banks revise FD rates in response to RBI repo rate changes, their own liquidity needs, and competitive pressure. It’s common for rates to shift multiple times within a single year.
Is a 5-year FD always the best rate? Not necessarily. Many banks’ peak rates actually sit in shorter or medium tenures (often 1–3 years) rather than the longest available term — always check the full tenure table rather than assuming longer means better.
Are small finance bank FDs safe? Small finance bank deposits are covered by the same DICGC insurance (up to ₹5 lakh per depositor per bank) as larger banks. They carry a different institutional risk profile than large public or private banks, which is a factor to weigh alongside the higher rate, not a reason to avoid them outright.
Are state government NBFC FDs (like TNPFC or KTDFC) safe? They’re generally considered reasonably safe given state government ownership, but they are NBFC deposits, not bank deposits — meaning no DICGC insurance applies. Safety depends on the specific corporation’s financial health and the nature of its government backing, which varies by state and scheme. Read the specific guarantee terms (if any) before treating the higher rate as risk-free.
You should also do a comparison with state government FD options. I don’t I’d know it’s the same with other states – TN Power Finance from (Power Dept) and TN Transport Finance from Transport Dot offer FD at 8% – even more for Senior citizens.
Yes will do it , but it is more like long term bonds i think let me check
@madras Ponnu – Its updated 🙂