Top 10 Banks Providing Higher Interest Rates on FD Accounts
Fixed deposits remain a popular option for guaranteed returns. Interest rates vary widely across banks and also change whenever the Reserve Bank of India revises the repo rate. FDs are offered by public sector, private sector, and small finance banks. This page helps you compare the latest FD interest rates offered by the leading banks in India in 2026.
Most banks operating in the country currently offer interest in the range of 2.50 - 5.50% p.a. However there are certain private lenders which are offering investors up to 7.35% p.a. for opening a Fixed Deposit account with them.
Here is a list of private banks which are offering high interest rates on FDs:
Name of Bank | Interest rate (p.a.) | Tenure |
7.20% | 18 months to 36 months | |
7.00% | 18 Months to 60 months | |
7.00% | 1 Year 6 Months to below 1 Year seven Months | |
7.35% | 444 Days | |
7.20% | 2 Years to less than 3 Year | |
7.00% | 450 days to 10 Years | |
6.80% | 400 Days | |
7.10% | 456 Days |
As seen in the table, some private banks are offering good interest rates on FDs when compared to other banks operating in the country.
- While some big private sector banks like HDFC bank are offering up to 6.45% p.a.,
- RBL Bank is offering 7.20% p.a. on a term deposit having a tenure of 3 years.
- The lender YES Bank is offering 7.00% p.a. on a tenure that ranges between 18 months to 60 months.
- IndusInd Bank offers 7.00% p.a. for tenures of 1 year 6 months to below 1 Year seven months.
- The highest interest rates offered by TNSC Bank is 7.35% p.a.
- IDFC First Bank and Bandhan Bank offer 7.50% 7.00% p.a. and 7.50% 7.20% p.a. respectively.
- The highest interest rates offered by Tamilnad Mercantile Bank and Karur Vysya Bank stand at 7.10% p.a. and 6.80% p.a., respectively
- It needs to be mentioned here that the rates mentioned in the table are for deposits below Rs.3 crore and are for general citizens.
- Senior citizens are eligible for additional interest up to 0.75% depending on the bank.
- Investing your funds in a FD will be ideal only if the lender is offering a high rate of return during these troubled times.
FAQs on Top 10 Banks Providing Higher Rates on FD
- What are the tenures offered by banks on fixed deposits?
Banks usually offer tenures ranging from 7 days to 10 years on fixed deposits.
- What is the highest interest rate offered by RBL Bank on its fixed deposits?
The highest interest rate offered by RBL Bank on its fixed deposits is 7.20% p.a. for a tenure of 3 years.
- Can I withdraw my fixed deposit before maturity?
Yes, you can withdraw your fixed deposit before maturity.
- Will the interest earned on a fixed deposit be taxed?
Yes, the interest earned on a fixed deposit will be taxed.
- Can I receive monthly interest on my fixed deposit?
Yes, you can receive monthly interest on your fixed deposit by selecting the monthly interest payout option.
- Do senior citizens receive additional interest rates on fixed deposits?
Yes, most banks offer an additional interest rate ranging between 0.25% to 0.75% to senior citizens on fixed deposits.
- Why do fixed deposit interest rates fluctuate?
The interest rates on fixed deposits fluctuate due to numerous factors such as demand and supply, liquidity conditions, inflation, etc.
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