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Fixed Deposits Updated 3 days ago

Best FD Rates — September 2026

Compare fixed deposit interest rates across 15 banks — Public, Private & Small Finance Banks

Quick Summary

  • A Fixed Deposit (FD) locks a lump sum with a bank for a fixed tenure at a fixed interest rate — the safest common savings option, with returns guaranteed regardless of market movement.
  • This page compares FD rates across 15 banks — Public Sector, Private and Small Finance Banks — for tenures from 7 days to 5 years.
  • Small Finance Banks generally offer higher rates than large private/public banks, in exchange for slightly higher (though still DICGC-insured up to ₹5 lakh) risk.
  • Senior citizens typically get an extra 0.5% on top of the rates shown here.

Banks Tracked

15

Best 3 Months Rate

5.25%

Average Rate

4.63%

Rates Verified

25 Sep 2026

IB

ICICI Bank

Private

5.25%

Sr: 5.75%

🏆 Best Rate for 3 Months
AB

Axis Bank

Private

5.0%

Sr: 5.5%

BO

Bank of Baroda

Public Sector

5.0%

Sr: 5.5%

IF

IDFC First Bank

Private

5.0%

Sr: 5.5%

S

SBI

Public Sector

4.9%

Sr: 5.4%

YB

Yes Bank

Private

4.75%

Sr: 5.25%

IB

IndusInd Bank

Private

4.75%

Sr: 5.25%

AS

AU Small Finance

Small Finance

4.75%

Sr: 5.25%

US

Ujjivan Small Finance

Small Finance

4.65%

Sr: 5.4%

P

PNB

Public Sector

4.5%

Sr: 5.0%

HB

HDFC Bank

Private

4.25%

Sr: 4.75%

CB

Canara Bank

Public Sector

4.25%

Sr: 4.75%

FB

Federal Bank

Private

4.25%

Sr: 4.75%

BB

Bandhan Bank

Small Finance

4.2%

Sr: 4.7%

KM

Kotak Mahindra Bank

Private

4.0%

Sr: 4.5%

FD Interest is Taxable

FD interest is added to your income and taxed at your slab rate. TDS deducted at 10% if interest > ₹40,000/year. For 30% slab, post-tax FD return = ~4.9% (at 7% FD).

DICGC Insurance

All bank FDs are insured by DICGC (RBI) up to ₹5 Lakh per depositor per bank. To be safe, spread FDs across multiple banks if you have more than ₹5 Lakh to invest.

FD vs Mutual Funds

For 5+ year goals, equity mutual funds historically return 10-15% vs FD's 6-7%. For 1-3 year goals or risk-averse investors, FDs remain a strong choice.

FD rates are indicative and sourced from bank websites and rate aggregators — they are not live and may lag actual bank rates. Always verify the current rate with the bank before investing. Rates verified: 25 September 2026.