A comprehensive guide to FD interest rates across Small Finance Banks, Private Sector Banks, Public Sector Banks, and Foreign Banks for 1, 3, 5, and 10-year tenures.

Introduction

Fixed Deposits (FDs) continue to be one of the most preferred investment instruments for Indian savers, offering guaranteed returns, capital protection, and flexible tenures. In a landscape where market-linked instruments carry inherent volatility, FDs provide peace of mind — particularly for risk-averse investors, senior citizens, and those looking for steady income.

With the Reserve Bank of India (RBI) maintaining its monetary policy stance and banks recalibrating their deposit strategies, the FD market is witnessing some compelling rates — especially among Small Finance Banks (SFBs), where returns can go as high as 8.10% per annum. Whether you are looking to park funds for a year, build wealth over three to five years, or lock in a long-term rate for a decade, this guide provides a comprehensive overview of the latest FD interest rates across all categories of banks operating in India.

Why Fixed Deposits Still Matter

Despite the proliferation of mutual funds, stocks, and digital investment products, FDs remain the cornerstone of household savings in India. They offer zero market risk, assured returns, and the added advantage of DICGC insurance coverage up to ₹5 lakh per depositor per bank. For investors seeking stability, FDs are unmatched.

The current rate environment is particularly interesting. Several banks — especially in the Small Finance Bank segment — are offering north of 7.5% to 8% on select tenures, which, when compounded, can generate meaningful wealth over time. Even private sector banks are becoming increasingly competitive, with some offering 7%+ on carefully chosen tenure windows.

Small Finance Banks: Leading the Rate Race

Small Finance Banks have emerged as the most aggressive players in the FD market. Their higher rate offerings are primarily driven by the need to mobilise retail deposits, which form a key part of their funding mix. Here's a breakdown of the key names:

Suryoday Small Finance Bank tops the chart with an impressive 8.10% per annum on 30-month deposits. For the 5-year tenure, it continues to shine at 7.90%, making it one of the most rewarding long-term FD options available. Its 1-year rate of 7.25% also stands well above the industry average.

ESAF Small Finance Bank offers the second-highest peak rate at 8.00% for 501-day deposits. However, investors should note that its rates for standard tenures are relatively modest — 4.75% for 1 year and 6.00% for 3 years — indicating that the high rate is concentrated in a specific niche window.

Shivalik Small Finance Bank offers 7.80% for a 21 months 1 day to 22-month tenure. Jana Small Finance Bank provides 7.77% for deposits above 3 years to 5 years, and notably offers a steady 7.50% across both 3-year and 5-year standard tenures.

Slice Small Finance Bank and Ujjivan Small Finance Bank round out the list with attractive offerings at 7.75% and 7.45% respectively at their peak slabs, while AU Small Finance Bank and Equitas Small Finance Bank offer competitive rates in the 7.10% to 7.40% range.

For investors comfortable with SFBs (which are fully regulated by the RBI and covered by DICGC insurance), these rates represent a significant premium over what traditional banks offer — often by 100 to 150 basis points.

Private Sector Banks: A Wide Spectrum of Options

Private sector banks offer a wide range of rates, with some niche players punching well above the industry average. SBM Bank India leads the private pack with an exceptional 7.85% for deposits between 391 days and 15 months, with its 1-year and 3-year rates also holding strong at 7.10% each.

Bandhan Bank offers 7.25% at its peak slab for 2 to less than 5-year tenures, with a solid 7.25% on 1-year FDs as well. IDFC FIRST Bank offers 7.40% for its 390-day tenure, along with an attractive 7.00% on both 3-year and 5-year deposits. RBL Bank provides 7.20% for 18 months to 3 years, with consistent rates across tenures.

Among the large private banks, IndusInd Bank offers 7.00% at its highest slab and 6.90% for a 3-year tenure. Kotak Mahindra Bank and City Union Bank offer moderate but competitive rates in the 6.80% to 7.00% range. The major banks — HDFC Bank, ICICI Bank, and Axis Bank — remain conservative in their FD offerings, hovering around the 6.25% to 6.50% band for standard tenures.

DCB Bank deserves a special mention for its multi-tenure approach, offering 7.15% across three specific tenure windows (24–25 months, 34–35 months, and 60–61 months) — giving investors more flexibility to lock in high rates.

Public Sector Banks: Safety with Steady Returns

Public sector banks, while not the highest-paying category, offer a combination of trust, stability, and accessible banking infrastructure. Their FD rates are generally in the 6.00% to 6.75% range, catering to conservative investors who prioritize safety above all else.

Bank of Maharashtra leads the public sector pack with a peak rate of 6.65% for 400-day deposits. Punjab & Sind Bank follows closely at 6.75% for 666-day deposits. Among the large nationalised banks, Bank of India, Canara Bank, Indian Overseas Bank, Punjab National Bank, and Union Bank of India all offer 6.60% at their respective highest slabs.

State Bank of India, India's largest bank, offers a peak rate of 6.45% under its special 'Amrit Vrishti' scheme for 444-day deposits. For long-term deposits, SBI's 5-year and 10-year rates stand at 6.05% each — respectable for a bank of its stature, particularly given the implicit sovereign assurance it carries.

Notably, the 444-day tenure appears to be a favourite strategy among public sector banks, with Bank of India, Indian Bank, Indian Overseas Bank, Punjab National Bank, Union Bank of India, and SBI all leveraging this window for their best rates.

Foreign Banks: Selective but Noteworthy

Foreign banks operating in India have a limited retail presence but do offer some competitive FD rates for their target customer base. Deutsche Bank leads this segment with a 7.00% rate for 1 to 2-year deposits, though its 1-year rate of 5.00% is notably lower. Standard Chartered Bank offers a consistent 6.60% across its 1-year tenure and a peak slab of the same rate, with 6.50% and 6.25% for 3-year and 5-year tenures respectively. HSBC Bank offers the most conservative rates, with a peak of 5.50%, making it better suited for NRI or institutional customers seeking brand credibility over rate maximization.

Key Takeaways for Investors

For investors seeking maximum returns, Suryoday Small Finance Bank (8.10%) and ESAF Small Finance Bank (8.00%) offer the best peak rates in the market today. However, it is important to evaluate not just the headline rate but the specific tenure for which it applies, as many high rates are tied to narrow tenor windows.

For those with a 3-year horizon, Jana Small Finance Bank (7.50%), slice Small Finance Bank (7.50%), and Utkarsh Small Finance Bank (7.50%) stand out. For 5-year FDs, Suryoday (7.90%) and Jana (7.77%) lead the pack. Investors looking at large private banks for combined rate and safety may find Bandhan Bank (7.25%) and IDFC FIRST Bank (7.00%) worth considering.

If you are a conservative investor who prefers government-backed banks, SBI's Amrit Vrishti scheme and the 444-day offerings from Canara Bank and Union Bank of India are solid choices in the 6.25% to 6.60% range.

A diversified FD strategy — splitting deposits across different tenures and bank types — can help investors balance rate optimization with liquidity needs and risk management.

Comprehensive FD Rate Table: All Banks at a Glance

Interest rates p.a. as published. Always verify the latest rates directly with the bank before investing.

Disclaimer: Interest rates are subject to change. The above data is for general informational purposes only. Please verify current rates with your bank before making investment decisions. Deposits in scheduled commercial banks are insured by DICGC up to ₹5 lakh per depositor per bank.