During the one-year period, from January 2025 to December 2025, the RBI cut the Repo Rate by 125 basis points, from 6.5% to 5.25%. Banks followed the RBI by cutting fixed deposit interest rates. Since then, the RBI has kept the Repo Rate steady at 5.25%. However, since the start of 2026, many banks have hiked fixed deposit interest rates. In this article, we will analyse which banks are offering higher fixed deposit interest rates and whether you should invest in them.
Small finance banks: Interest rates on fixed deposits
Let us look at the interest rates that banks are offering on fixed deposits. Small Finance Banks (SFBs) are offering the highest interest rates on fixed deposits. Some SFBs have increased the fixed deposit interest rates recently since the start of 2026.
| Bank name | Tenure | Interest rate (General) | Interest rate (Senior citizens) |
| Suryoday Small Finance Bank | 30 months | 8.10% | 8.25% |
| Shivalik Small Finance Bank | 21 months 1 day to 22 months | 7.80% | 8.30% |
| Jana Small Finance Bank | 3 years 1 day to less than 5 years, and 5 years | 7.77% | 7.77% |
| Ujjivan Small Finance Bank | 24 months | 7.45% | 7.95% |
| Unity Small Finance Bank | 12 months | 7.25% | 7.75% |
Note: The above interest rates are as of 15th April 2026 and have been taken from the respective bank websites. Please refer to the bank website/App for the latest FD rates.
The above table shows Suryoday SFB offers the highest interest rate of 8.10% on fixed deposits with a tenure of 30 months. For other tenures, like 5 years, the bank offers an interest rate of 7.90%, and 7.60% for 18 months tenure.
The highest interest rate for Shivalik SFB is 7.80% on fixed deposits with a tenure of 21 months 1 day to 22 months. For other tenures, like 18 months to 21 months, and 22 months 1 day to 24 months, the bank offers an interest rate of 7.00%.
The highest interest rate for Jana SFB is 7.77% on fixed deposits with a tenure of 3 years 1 day to less than 5 years, and 5 years. For other tenures, like 1 year 1 day to 2 years, and 2 years 1 day to 3 years, the bank offers an interest rate of 7.50%.
The highest interest rate for Ujjivan SFB is 7.45% on fixed deposits with a tenure of 24 months. For other tenures, such as 12 months to less than 24 months, and 24 months 1 day to 990 days, the bank offers an interest rate of 7.25%.
The highest interest rate for Unity SFB is 7.25% on fixed deposits with a tenure of 12 months. For various tenures ranging from 501 days to 60 months, the bank offers an interest rate of 6.75%.
Private banks: Interest rates on fixed deposits
In the earlier section, we saw the fixed deposit rates offered by SFBs. Now, let us look at the fixed deposit rates offered by private banks.
| Bank name | Tenure | Interest rate (General) | Interest rate (Senior citizens) |
| IDFC FIRST Bank | 390 days | 7.40% | 7.90% |
| RBL Bank | 18 months to 36 months | 7.20% | 7.70% |
| Yes Bank | 36 months to less than 60 months | 7.00% | 7.75% |
| ICICI Bank | 3 years 1 day to 5 years | 6.50% | 7.10% |
| HDFC Bank | 3 years 1 day to less than 4 years 7 months | 6.50% | 7.00% |
Note: The above interest rates are as of 15th April 2026 and sourced from the respective bank websites. Please refer to the bank website/App for the latest FD rates.
The above table shows IDFC FIRST Bank offers the highest interest rate of 7.40% on fixed deposits with a tenure of 390 days. For other tenures, like 391 days to 2 years, the bank offers an interest rate of 7.25%; and for a tenure of 2 years 1 day to 5 years, it offers 7.00%.
The highest interest rate offered by RBL Bank is 7.20% on fixed deposits with a tenure of 18 months to 36 months. For other tenures, such as 501 days to less than 18 months, 36 months 1 day to less than 60 months, the bank offers an interest rate of 7.00%.
The highest interest rate for Yes Bank is 7.00% on fixed deposits with a tenure of 36 months to less than 60 months. For other tenures as well, such as 18 months 1 day to less than 24 months, 24 months to less than 35 months, 35 months 1 day to less than 36 months, the bank offers an interest rate of 7.00%.
The highest interest rate for ICICI Bank is 6.50% on fixed deposits with a tenure of 3 years 1 day to 5 years. For various other tenures, such as 5 years 1 day to 10 years, and 5 years (tax saver FD) also, the bank offers an interest rate of 6.50%.
The highest interest rate for HDFC Bank is 6.50% on fixed deposits with a tenure of 3 years 1 day to less than 4 years 7 months. For various other tenures, ranging from 21 months to less than 3 years, the bank offers an interest rate of 6.45%.
Public sector banks: Interest rates on fixed deposits
The fixed deposit interest rates offered by some public sector banks are as follows.
| Bank name | Tenure | Interest rate (General) | Interest rate (Senior citizens) |
| Punjab & Sind Bank | 666 days | 6.75% | 7.25% |
| Indian Overseas Bank | 444 days | 6.60% | 7.10% |
| Punjab National Bank | 444 days | 6.60% | 7.10% |
| Canara Bank | 555 days | 6.60% | 7.10% |
| Bank of India | 450 days | 6.60% | 7.10% |
| IDBI Bank | 2 years 1 day to less than 3 years | 6.50% | 7.00% |
Note: The above interest rates are as of 15th April 2026 and sourced from the respective bank websites. Please refer to the bank website/App for the latest FD rates.
The above table shows that Punjab & Sind Bank offers the highest interest of 6.75% on a fixed deposit of 666 days. Four of the six PSU banks are offering 6.60% as the highest interest rate on fixed deposits. However, the tenure for these fixed deposits ranges from 450 days to 555 days.
Why have banks increased fixed deposit interest rates?
The last time the RBI cut the Repo Rate was in December 2025, and since then, it has held interest rates steady. Yet, since the start of 2026, some banks have increased interest rates on fixed deposits. Some of the reasons include the high credit growth rate versus the slower deposit mobilisation rate, competition from other fixed-income instruments (small savings schemes, Government and corporate bonds, etc.), shifting individual investment patterns from fixed deposits to mutual funds, etc.
Over the last few months, the credit growth rate has been higher than the deposit growth rate. Hence, banks are making efforts to mobilise higher deposits by making fixed deposits attractive to depositors. The interest rates on most small savings schemes are either higher or competitive compared to bank fixed deposit interest rates. The interest rates (as of 15th April 2026) for some of the small savings schemes are as follows:
- Post Office 5-Year Time Deposit (7.5%)
- Senior Citizens Savings Scheme (8.2%)
- National Savings Certificate (7.7%)
- Sukanya Samriddhi Account (8.2%)
- Public Provident Fund (7.1%)
- Kisan Vikas Patra (7.5%)
The yields on the 10-Year Government Securities are trading in the 6.9% to 7.1% range. Yields on State Development Loans (SDLs) and corporate bonds are higher than those on G-Secs. The yields have increased in the last few months, making them attractive to investors.
Should you invest in bank fixed deposits?
Banks have to attract more deposits to fund the high credit growth. Similarly, the interest rates on the small savings schemes are attractive. Yields on the G-secs, SDLs, corporate bonds, etc., have increased recently.
To compete with other fixed-income instruments, banks have to keep interest rates on fixed deposits attractive. Hence, many banks have repriced their fixed deposit interest rates in the last few months, inspite of the RBI maintaining status quo on the Repo Rate.
With many banks recently increasing fixed deposit interest rates, there has been a reversal from cutting fixed deposit interest rates to raising them. The current fixed deposit interest rates being offered are decent. Hence, if you were planning to invest in bank fixed deposits, this is a good time to invest and benefit from the attractive interest rates. When investing in a fixed deposit, consider the inflation rate. Also, note that the interest rate on fixed deposits is taxed at the individual’s slab rate.