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Fixed Deposits 2026: Compare Rates, Types & Features

Current FD rates, every type explained, how the interest is taxed across tax regimes, and an honest look at where an FD belongs in a retirement plan.

8.1% p.a

8.1% p.a

8.1% p.a

8.1% p.a

8.1% p.a

8.1% p.a

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What is a Fixed Deposit?

A Fixed Deposit is a straightforward, legally binding contract between you and a financial institution. You lend them a specific amount of money for a predetermined duration. They guarantee to pay you a fixed interest rate in return. The fixed deposit interest rate is strictly locked the moment you open the account. Even if the Reserve Bank of India drops interest rates tomorrow, your FD remains entirely unaffected. You know exactly what sum of money you will have on the exact date your FD matures. This makes fixed deposits the perfect vehicle for short-term financial goals, emergency funds, and capital preservation for retirees.

Fixed Deposit Calculator

Estimate your returns instantly and find the best rates.
General
Senior Citizen
Amount you want to invest
₹
₹10K ₹1Cr+
Investment Duration
2 Y
  • 1 Y
  • 2 Y
  • 3 Y
  • 4 Y
  • 5 Y
  • 6 Y
  • 7 Y
  • 8 Y
  • 9 Y
  • 10 Y
0 M
  • 0 M
  • 1 M
  • 2 M
  • 3 M
  • 4 M
  • 5 M
  • 6 M
  • 7 M
  • 8 M
  • 9 M
  • 10 M
  • 11 M
0 D
  • 0 D
  • 1 D
  • 5 D
  • 7 D
  • 10 D
  • 15 D
  • 20 D
  • 25 D
  • 29 D
Recommended Rates for you
Highest
7.00%
For 3Y 1D to 5Y
7.25%
For 2Y 1D to 3Y
Money you'll receive on Maturity
₹1,21,317
Maturity Date: 18 Nov, 2027
Total Investment ₹1,00,000
Total Interest ₹21,317
Effective Yield 7.10% p.a.
View Plans

Current FD interest rates (August 2026)

Interest rates vary significantly depending on the type of bank you choose. Small finance banks currently offer the highest yields, while large public and private sector banks provide more conservative but highly stable options. Senior citizens generally receive an additional premium of 0.25% to 0.50% per annum across most institutions.

Tax Note: Please remember that the interest you earn from any of these bank FDs is fully taxable at your applicable income tax slab rate. This rule applies identically whether you file your taxes under the old tax regime or the new tax regime.

Top 20 Banks Offering Best FD Rates -

Highest FD Rates Online 2026
Fixed deposit interest rates vary across banks and tenures. The table below compares the highest FD rates offered by some of the top banks in India.
Bank FD Highest Rate 1-Year Rate 3-Year Rate 5-Year Rate Senior Citizen Rate
Suryoday Small Finance Bank FD Rates 8.10% 7.25% 7.25% 7.90% 0.15%
Utkarsh Small Finance Bank FD Rates 8.10% 6.00% 7.50% 7.00% 0.50%
Jana Small Finance Bank FD Rates 8.00% 7.00% 8.00% 7.77% 0.50%
Shivalik Small Finance Bank FD Rates 8.00% 6.00% 7.50% 6.25% 0.50%
Equitas Small Finance Bank FD Rates 8.00% 7.10% 7.10% 7.00% 0.50%
Ujjivan Small Finance Bank FD Rates 7.80% 7.25% 7.25% 7.20% 0.50%
ESAF Small Finance Bank FD Rates 7.75% 6.00% 6.00% 5.75% 0.50%
DCB Bank FD Rates 7.50% 6.90% 7.00% 7.50% 0.25%-0.50%
Unity Small Finance Bank FD Rates 7.50% 7.50% 6.75% 6.75% 0.50%
Bandhan Bank FD Rates 7.45% 7.00% 7.25% 5.85% 0.50%-0.75%
AU Small Finance Bank FD Rates 7.40% 6.35% 7.40% 6.75% 0.50%
YES Bank FD Rates 7.25% 6.65% 7.00% 6.75% 0.50%-0.75%
RBL Bank FD Rates 7.20% 7.00% 7.20% 6.70% 0.50%
Capital Small Finance Bank FD Rates 7.15% 7.00% 7.00% 6.90% 0.50%
IndusInd Bank FD Rates 7.00% 6.75% 7.00% 6.65% 0.50%
Bank of India FD Rates 6.85% 6.50% 6.70% 6.00% 0.50%
Federal Bank FD Rates 6.80% 6.25% 6.75% 6.40% 0.50%
Central Bank of India FD Rates 6.70% 6.10% 6.00% 6.00% 0.50%
*Fixed deposit rates as of July 2026

Types of Fixed Deposit

Different jobs, different FDs. The one that matters most for retirees is the non-cumulative FD, as it pays you regular income.
Cumulative
Grow a lump sum
Interest compounds and pays out at maturity. Best when you do not need the money in between.
%
Non-cumulative
Regular income
Interest is paid monthly or quarterly. The go-to option for retirees living off their corpus.
Tax-saving
Section 80C
5-year lock-in. Principal up to ₹1.5L is deductible under the old tax regime only. This deduction is not available under the new tax regime.
Flexi / Sweep-in
Liquidity + returns
Links to your savings account; idle cash sweeps in, and breaks in parts when needed.
Senior citizen
Preferential rate
Extra 0.25% to 0.50% for those aged 60 and above. It is worth checking against SCSS first.
Corporate / NBFC
Higher rate, more risk
Issued by finance companies, offering higher rates but they are not DICGC-insured. Rating matters.

Types of Fixed Deposit for NRIs

NRE (Non-Resident External)
An NRE fixed deposit allows NRIs to deposit foreign currency earnings converted into Indian Rupees (INR). Both the principal amount and interest earned are 100% tax-free in India and fully repatriable to your overseas account.
NRO (Non-Resident Ordinary)
An NRO fixed deposit is designed for NRIs to deposit and manage income earned inside India, such as rent, dividends, or pensions. Interest earned is subject to Tax Deducted at Source (TDS) and taxable as per your tax slab, with restricted repatriation limits.
FCNR (Foreign Currency Non-Resident)
An FCNR deposit allows NRIs to hold fixed deposits directly in foreign currencies (e.g., USD, GBP, EUR, AUD), eliminating currency fluctuation risk. The interest earned is tax-free in India, and the full deposit is completely repatriable.
How to Open a Fixed Deposit
You can open a fixed deposit both online and offline. Choose either method as per your convenience.
OPTION A
Online Method (Net Banking / App)
In case you already have a savings account with the bank or NBFC, use the following steps to open an FD account:
1
Sign In
First, log in to internet banking or mobile banking app.
2
Open Deposits
Go to Deposits and click on New Fixed Deposit.
3
Amount & Tenure
Select your investment amount and the tenure.
4
Payout Frequency
Select your payout frequency
5
Submit
Go over the information again and then confirm.
6
Get Receipt
Download your digital FD receipt instantly.
OPTION B
Offline Application (Branch Banking)
In case you prefer visiting the bank or the nearest NBFC branch to open a Fixed Deposit, you can do that by following a simple application procedure:
1
Branch Visit
Go to your local bank branch during its opening hours.
2
Ask for the Application Form
Make a request to the bank executive for Fixed Deposit application form.
3
Fill the FD Form
Apart from your personal details, fill in the required details in the form such as FD amount and tenure.
4
Authorise
Sign the form to authorise the transfer.
5
Submit
Give to the executive and wait for processing.
6
Physical FD Receipt
Take the physical FD receipt from the counter.

Why Invest in Fixed Deposits?

Fixed deposits remain a cornerstone for conservative investors, offering guaranteed returns, strong safety mechanisms, and multi-purpose financial flexibility.
Benefit
Details
Guaranteed Returns
With a Fixed Deposit, you get a fixed interest rate that is fixed at the time of opening the account. The interest rate is fixed for the entire tenure, irrespective of the movement in the market interest rates.
Capital Protection
Fixed deposits with scheduled banks are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) plan. Deposits up to ₹5 lakh per depositor per bank are insured under the DICGC in the event of bank failure.
Tax Benefits
Several banks and NBFCs are providing tax-saving Fixed Deposits for a five year lock-in period. If you choose the old tax regime, then you can avail of the tax deduction under Section 123 of the Income Tax Act, 2025 of up to ₹1.5 lakh in a tax year. But the interest accrued on such deposits will be taxable as per the investor's applicable income tax slab.
Loan Against Fixed Deposit
Most banks allow customers to borrow against their fixed deposits without closing them prematurely. The loan is usually offered as an overdraft or term loan against the FD. This facility helps satisfy short term financial demands without losing the benefits of investment since the deposit continues to generate interest over the loan lifetime.
Credit Card Against Fixed Deposit
Several banks provide secured credit cards against FD. These cards are designed for people with little or no credit history, as regular and on-time use can help build or improve their credit score. The credit limit is often associated with the FD amount. This means that customers can enjoy the benefits of a credit card without the need for a significant income or a past credit history.

Where FD Fits in a Retirement Plan

A fixed deposit, in addition to a retirement plan, will always yield more than either instrument used alone. The useful question is not "FD or retirement products"; it is how much FD, and for what job.
Job 1
The safety bucket
Hold 1 to 3 years of expenses in FDs so a market dip never forces you to sell growth assets at the wrong time.
%
Job 2
The income ladder
Stagger FDs across maturity years to secure regular access to cash, and you can reinvest at prevailing rates instead of locking everything low.
Job 3
Complement, not replace
An annuity guarantees you will not outlive your income; FDs give the liquidity it cannot. Many retirees run both.

FD vs Other Retirement Products

Savings Tool
Fixed Deposit
Pension / Annuity
NPS
SCSS
Purpose Park a lump sum safely, earn fixed interest Turn a corpus into guaranteed income Build a corpus over working years Regular income for retirees
Return type Fixed, locked at booking Fixed annuity rate Market-linked (you pick the mix) Fixed, government-set quarterly
Indicative (Aug '26) ~2.5% to 8.1% p.a. ~6% to 7.5% p.a. No guarantee; equity-tilted historically higher 8.2% p.a.
Certainty High High Not guaranteed High (sovereign)
Liquidity High, break with approximately 1% penalty Low once annuitised Locked until 60 Moderate, penalty applies
Income while invested Yes (non-cumulative) Yes, that is the point No, starts at 60 Yes, quarterly
Tax on returns Fully taxed at slab rate (old and new regime) Annuity taxed at slab rate (old and new regime) Largely favourable (EEE-ish) Taxed at slab rate (old and new regime)
Tax break on investing 80C deduction on 5-yr tax-saver in old regime only 80CCC (within 80C) in old regime only Extra ₹50k (80CCD-1B) in old regime only 80C on deposit in old regime only
Safety net DICGC ₹5L (banks) IRDAI insurer PFRDA; market risk is yours Government of India

How FD Interest is Taxed

FD interest is fully taxable at your applicable slab rate as "income from other sources" under both the old and new tax regimes. TDS kicks in once interest crosses the threshold of ₹40,000 for regular depositors, or ₹50,000 for senior citizens. You can submit Form 15G or 15H if your total income is below the taxable limit to avoid this upfront deduction.

TDS is not your final tax liability; you must still report the interest in your tax return and settle any balance. It is important to note that only the 5-year tax-saving FD provzides a deduction on the principal amount under Section 80C, and this benefit is strictly limited to the old tax regime. Under the new tax regime, no such deduction is available.

Banks offering FDs
HDFC
Sukanya Samriddhi Yojana HDFC
Kotak
Sukanya Samriddhi Yojana Kotak
LIC
Sukanya Samriddhi Yojana LIC
ICICI
Sukanya Samriddhi Yojana ICICI Bank
Axis
Sukanya Samriddhi Yojana Axis Bank
View more

How RBI Repo Rates Drive Your FD Returns

The Reserve Bank of India lowered the repo rate by 1.25% (125 bps) starting February 2025 before pausing. Fixed deposit interest rates across major banks have closely followed this downward trend.
RBI repo rate, June 2024 to August 2026
125 basis points of cuts since February 2025, then four holds. Deposit cards followed the cuts down.
POLICY BACKDROP
Repo rate 5.25%
Stance Neutral
Last decision 5 August 2026
Next MPC meeting 5—7 October 2026
RBI FY27 CPI projection 5.00%
What the Current Repo Rate Means for Your FD Strategy
With the Reserve Bank of India holding the repo rate steady at 5.25% after a 125-basis-point reduction, the rate-easing cycle has officially paused. Given a neutral policy stance and inflation projected at 5.00%, neither sharp rate hikes nor further cuts are expected soon. Waiting for deposit rates to rebound is not a practical strategy right now. Instead, lock in the exact tenures required for your financial goals today. To maintain liquidity, consider laddering your deposits across 1-year, 2-year, and 3-year maturities so money matures periodically to reinvest if interest rates shift. Lastly, avoid committing to 10-year FDs at 6.05%, as shorter 2-year slabs currently deliver higher yields at this stage of the rate cycle.

Frequently Asked Questions

Is a Fixed Deposit safe for retirement?

It is excellent for the safety and income portion of a plan, protecting capital and generating predictable interest, but it is not a complete retirement solution. It cannot guarantee income for life the way an annuity can, and a fixed nominal return can lag inflation over a long retirement, so it is usually paired with a growth or pension component.

Which is better, FD or SCSS for senior citizens?

For eligible retirees aged 60 and above, SCSS currently pays 8.2% p.a. with quarterly payouts and sovereign backing, which often beats senior-citizen FD rates. FDs, however, offer more flexibility on tenure and deposit amounts, and they can be laddered. Many retirees fill SCSS up to its ₹30 lakh ceiling, then use FDs beyond it.

How is FD interest taxed in India?

FD interest is fully taxable at your applicable income tax slab rate under both the old and the new tax regimes. TDS applies if the interest crosses the threshold of ₹40,000 for regular depositors or ₹50,000 for senior citizens. Only the 5-year tax-saving FD provides a tax deduction on the principal amount (under Section 80C), and this is only available if you opt for the old tax regime.

Can I get monthly interest on a Fixed Deposit?

Yes, a non-cumulative FD pays interest monthly, quarterly, half-yearly or annually, which is why it is a common regular-income tool for retirees.

Is Fixed Deposit better than NPS for retirement?

They serve different jobs. NPS builds a corpus over your working years with market-linked growth and a unique extra ₹50,000 deduction (80CCD-1B) under the old tax regime. However, NPS carries market risk and locks funds until age 60. An FD protects capital and stays liquid but will not grow like NPS over decades. A balanced plan often uses NPS to accumulate wealth and FDs for the near-term safety bucket.
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