Fixed Deposits (FDs) remain one of the most popular investment options in India because they offer stable returns and low risk. With changing monetary policies and market conditions, banks periodically revise their FD interest rates. As of 2026, most banks in India offer FD interest rates ranging between about 6% and 7.5% for regular customers, with senior citizens receiving an additional 0.25%–0.50% interest depending on the bank and tenure.
Let’s take a closer look at the fixed deposit rates offered by major banks in India.
1. State Bank of India (SBI) Fixed Deposit Rates
State Bank of India offers a wide range of FD tenures from 7 days to 10 years.
Interest rates (approximate):
- 7–45 days: around 3.05%
- 1–2 years: around 6.25%
- 2–3 years: up to 6.45%
- 5–10 years: about 6.05%
Senior citizens can earn up to about 7.05% depending on the tenure.
2. HDFC Bank Fixed Deposit Rates
HDFC Bank offers competitive FD rates across short and medium-term tenures.
Typical rates:
- Short-term deposits: 2.75%–4.25%
- 6–12 months: around 5.50%–5.75%
- 1–3 years: about 6.25%–6.45%
- Long-term deposits: around 6.15%
Senior citizens can earn up to 6.95% on select tenures.
3. ICICI Bank Fixed Deposit Rates
ICICI Bank also offers attractive FD schemes for different investment horizons.
Current approximate rates:
- 7–45 days: 2.75%
- 6–12 months: around 5.50%
- 1–2 years: about 6.25%–6.30%
- 3–5 years: up to 6.50%
Senior citizens can earn up to 7.10% on longer tenures.
4. Kotak Mahindra Bank Fixed Deposit Rates
Kotak Mahindra Bank offers slightly higher rates for certain tenures.
Estimated range:
- 1–3 years: around 7.10%
- Senior citizen rates: up to 7.20% for select periods.
5. Other Banks Offering Competitive FD Rates
Several banks offer attractive FD interest rates depending on tenure.
| Bank | 1-Year FD | 2-Year FD | 3-Year FD |
|---|---|---|---|
| Axis Bank | ~6.90% | ~7.10% | ~7.10% |
| Bank of Baroda | ~6.85% | ~7.00% | ~6.50% |
| Canara Bank | ~6.85% | ~6.85% | ~6.70% |
| Punjab National Bank | ~6.80% | ~7.00% | ~6.50% |
| IndusInd Bank | ~7.25% | ~7.25% | ~7.25% |
Some private and small finance banks even offer FD rates above 8% on select tenures, especially for senior citizens.
Key Factors That Affect FD Interest Rates
Several factors influence fixed deposit interest rates offered by banks:
1. RBI Monetary Policy
Changes in repo rates by the Reserve Bank of India influence lending and deposit rates.
2. Tenure of Deposit
Longer-term deposits often offer slightly higher interest rates.
3. Type of Bank
Private banks and small finance banks sometimes offer higher rates than public sector banks.
4. Investor Category
Senior citizens typically receive 0.25%–0.50% extra interest.
Conclusion
Fixed deposits continue to be a reliable investment option for individuals seeking safe and predictable returns. While major banks generally offer 6%–7.5% interest rates, smaller finance banks may provide even higher returns. Before investing, it is important to compare FD rates, tenure options, and additional benefits to choose the best deposit scheme that suits your financial goals.
