Best FD Rates in India: Compare SBI, HDFC, ICICI & Top Banks

Fixed deposits remain one of India's most popular savings instruments — but FD rates change with each RBI policy move, so locking in at the right time matters. This guide compares the latest FD rates across SBI, HDFC, ICICI and other top banks, covers the June 2026 rate revisions by PNB, Ujjivan, DCB and Union Bank, and explains the laddering strategy that maximizes returns.

Last updated: June 2026

June 2026 Update: 4 Banks Revised FD Rates

In June 2026, four banks revised their fixed deposit rates, with the highest rate touching 8.05% for senior citizens:

• Ujjivan Small Finance Bank: 3.5%–7.55% for the general public, and up to 8.05% for senior citizens (around the 60–61 month tenure) — the highest on offer.
• DCB Bank: also up to 8.05% for senior citizens on select long tenures.
• Punjab National Bank (PNB): 3%–6.6% for regular customers, up to 7.1% for senior citizens and 7.4% for super senior citizens.
• Union Bank of India: 2.70%–6.65% for the general public.

These revised rates are effective from 1 June 2026. Small finance banks like Ujjivan continue to offer the highest returns — just remember deposits are insured up to ₹5 lakh per bank under DICGC, the same cover that applies to every bank.

Why Book an FD Now?

If you've been thinking about opening a Fixed Deposit, the timing still makes sense. The RBI has cut the repo rate steadily over the past year to 5.25%, and FD rates have eased from their peak. But when you lock in an FD today, your interest rate stays fixed for the entire tenure — even if rates fall later.

Think of it like buying before prices rise: you get today's rate, guaranteed.

Current FD Rates: Top Banks Compared

Here's how the major banks compare for the general public (deposits under ₹3 crore):

Bank	1-Year Rate	2-Year Rate	3-Year Rate	5-Year Rate
SBI	6.25%	6.40%	6.30%	6.05%
HDFC Bank	6.25%	6.45%	6.45%	6.40%
ICICI Bank	6.25%	6.40%	6.60%	6.60%
Axis Bank	6.25%	6.45%	6.45%	6.45%
PNB	6.25%	6.30%	6.30%	6.10%

Indicative rates for the general public; always confirm the latest with your bank before investing. Last updated: June 2026.

Senior Citizens Get More

If you're 60 or above, you get an additional 0.50% to 0.75% on top of regular rates — and small finance banks go even higher (up to 8.05%). For example:

• Ujjivan SFB / DCB: up to 8.05% on long tenures
• ICICI Bank: up to 7.20% for 2–5 year tenures
• HDFC Bank: up to 7.00% for 2–3 year tenures
• SBI: up to 6.90% for 2–3 year tenures

That's a very attractive rate for a risk-free investment.

The RBI Rate Story: What's Happening?

The RBI repo rate stands at 5.25%. In its June 2026 meeting, the Monetary Policy Committee held the rate steady with a neutral stance, after a series of cuts over the previous year:

• 2025: the RBI cut the repo rate by a cumulative 125 basis points
• February 2026: rate held at 5.25%
• June 2026: rate held again at 5.25%, stance kept neutral

With the repo rate on hold, big banks' FD rates have largely stabilized, while small finance banks keep competing with higher offers. Whenever the RBI resumes cutting, FD rates will follow — so today's longer-tenure rates may look attractive in hindsight.

Which Tenure Should You Choose?

This is where strategy matters. Here's a simple approach:

For Maximum Returns: 2–3 Year FDs

Right now, the sweet spot is the 2–3 year tenure, where most banks offer their best rates. ICICI Bank, for instance, leads with 6.60% for deposits from 2 years 1 day to 5 years.

For Tax Saving: 5-Year FDs

A 5-year tax-saving FD lets you claim deductions up to ₹1.5 lakh under Section 80C — useful if you're on the old tax regime. Remember, though, that the interest it earns is still taxable; see our guide to tax on FD interest for the details.

The Laddering Strategy

Instead of putting all your money in one FD, consider FD laddering:

• Split your investment into 3–4 equal parts
• Book FDs with different tenures (1, 2, 3 and 5 years)
• As each FD matures, reinvest at the then-current rate

This gives you both liquidity (some money frees up every year) and rate protection (you've locked today's rates for the longer tenures).

FD vs Other Investment Options

Fixed deposits are great for safety, but how do they compare?

Investment	Returns	Risk	Lock-in	Tax Benefit
FD (5-year)	6.05–6.60%	Zero	5 years	80C (₹1.5L)
PPF	7.10%	Zero	15 years	80C + EEE
NPS	8–10%*	Low-Medium	Till 60	80CCD(1B) extra ₹50K
ELSS (SIP)	12–15%*	High	3 years	80C (₹1.5L)
RD	6.00–6.50%	Zero	Flexible	None

*Returns are historical averages and not guaranteed.

For a balanced approach, keep your emergency fund in FDs for safety while investing for growth via SIPs in mutual funds or NPS for retirement.

Use our FD Calculator to see exactly how much your deposit will earn at current rates.

Tips to Maximize Your FD Returns

• Compare before you commit: even a 0.25% difference compounds significantly over 3–5 years.
• Consider small finance banks: they often offer 0.5–1% higher rates than big banks (Ujjivan and DCB are up to 8.05% for seniors) — just keep the ₹5 lakh DICGC cover in mind.
• Choose the cumulative option: if you don't need monthly income, cumulative payout gives higher effective returns through compounding.
• Avoid premature withdrawal: breaking an FD early costs 0.5–1% in penalty, so plan your tenure carefully.
• Submit Form 15G/15H: if your total income is below the taxable limit, these forms stop the bank from deducting TDS on your FD interest.

The Bottom Line

FD rates are still at attractive levels — small finance banks are offering up to 8.05% for seniors — but with the RBI on a neutral-to-easing path, the window for these rates may not stay open forever. If you have idle cash in a savings account earning just 2.5–3%, moving it to an FD at 6.25–8.05% is an easy win.

Use our Compound Interest Calculator to see how your money grows over time.

Frequently Asked Questions

Which bank gives the highest FD rates in India?

In June 2026, small finance banks led the table — Ujjivan SFB and DCB Bank offered up to 8.05% for senior citizens on long tenures. Among large banks, ICICI, HDFC and Axis typically lead for the 2–3 year tenure, while SBI usually sits 25–50 basis points below private banks but offers government-owned safety.

How much extra do senior citizens earn on FDs?

Senior citizens get an extra 0.50% (50 basis points) on most bank FDs, and some banks add another 25 bps for "super seniors" above 80. Senior citizens can also claim up to ₹50,000 of interest income as a deduction under Section 80TTB.

What is the FD laddering strategy?

FD laddering means splitting your amount across multiple tenures — for example ₹3 lakh each in 1-year, 2-year and 3-year FDs. As each matures, you reinvest at the latest rates. This protects you from being locked at low rates for too long and gives you periodic liquidity without breaking FDs.

Are FD returns taxed?

Yes — FD interest is fully taxable as "Income from Other Sources" at your slab rate. From FY 2025-26, banks deduct 10% TDS if your interest from that bank exceeds ₹50,000 a year (₹1,00,000 for senior citizens). Tax-saving FDs (5-year lock-in) qualify for Section 80C, but the interest is still taxable. See our full guide on tax on FD interest and how to save it.

Should I book an FD now or wait for higher rates?

With the RBI holding the repo rate at 5.25% and signalling a neutral-to-easing stance, FD rates are unlikely to climb much from here — so booking now (especially the higher small-finance-bank rates) makes sense. Rather than trying to time rates perfectly, ladder your FDs across tenures; consistent laddering beats market timing.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. FD rates mentioned are subject to change. Please verify current rates with your bank before investing.