In the present scenario, FDs continue to be one of the most preferred investment tools for investors seeking secure and stable returns. Fixed deposit interest rates have seen visible fluctuations this year. As a result, individuals are regularly comparing the latest FD rates to maximize returns while keeping their capital secure. However, not all banks offer the same rate of interest. In this blog, we are going to explore the latest FD rates in 2026, comparing top banks in India, and understanding the factors affecting the interest rates.
What is the interest rate?
An interest rate is a percentage earned on the deposited money by a bank or NBFC for a specific period of time. This rate is predetermined at the time of investment, and it remains unchanged by market fluctuations.
Types of FD interest rates:
1. Floating interest rate: In this type, the rate of interest may change over time. Usually, it is linked with market conditions and RBI policies.
2. Cumulative interest rate: The cumulative rate of interest is compounded and paid at the time of maturity, along with the principal deposited.
3. Non-cumulative interest rate: It is paid at regular intervals such as monthly, quarterly, half-yearly, and yearly.
4. Fixed interest rate: It remains constant throughout the tenure and is not affected by market conditions.
Latest Fixed Deposit rates:
The rate of interest varies from bank to bank and depends on the tenure of the deposit:
- Public Sector Banks: 3.05%- 6.60%
- Small Financial Banks: 4.00%- 8.50%
- Private Sector Banks: 2.75%- 7.00%
Fixed deposit interest rates vary across banks and depend mainly on the tenure of the deposit. The interest rates are subject to change based on bank policies and market conditions.
Interest rates 2026:
| Public Sector Banks | Private Sector Banks | Small Financial Banks |
| SBI (3.05%-6.40%) | HDFC (6.45%-6.50%) | SURYA SFB (8.0%-8.5%) |
| BOB (6.25%-6.30%) | ICICI (6.25%-6.50%) | UTKARSH SFB (7.65%) |
| PNB (6.25%-6.60%) | AXIS (3.0%-6.45%) | UJJIVAN SFB (7.20%-7.45%) |
| IOB (6.50%) | KOTAK MAHINDRA (2.75%-6.70%) | JANA SFB (7.75%-8.0%) |
| CANARA BANK (6.25%-6.50%) | IDFC FIRST (7.00%) | EQUITAS SFB (7.0%-7.8%) |
Fixed Deposit interest for Senior Citizens:
People aged 60 and above are considered senior citizens in the banking industry. They are offered a higher interest rate on fixed deposits than young individuals. Banks in India provide this extra benefit to help retirees get a fixed income with no risk.
In 2026, the senior citizens’ FD interest rates are generally 0.25%-0.75% higher than normal FD rates.
The interest rates are dependent on the type of bank:
- Private Banks offer 6.75% to 7.75%.
- Small Financial Banks offer 7.5% to 9%.
- Public Sector Banks 6.5% to 7.2%.
FD Maturity Calculator:
To calculate FD maturity, click the link below.
Conclusion:
Fixed deposits continue to offer a stable and secure return with a decent rate of interest, and without the fear of market fluctuations. Interest rates may vary across the public sector, private sector, and small financial banks, and factors such as RBI policies, tenure, and market conditions. While the private sector and small financial banks offer a higher rate of interest, public sector banks provide greater security.
