Which bank gives the highest FD interest rate in India 2026?

Small Finance Banks like Ujjivan, AU Small Finance and Bandhan Bank offer the highest FD rates in India — up to 7.5-7.6% p.a. Among large private banks, Yes Bank and IDFC First Bank offer up to 7-7.25%. Public sector banks like SBI, PNB offer 6-6.4%.

Is FD interest taxable in India?

Yes, FD interest is fully taxable as income. TDS is deducted at 10% if annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). The total interest is added to your income and taxed at your slab rate.

Is FD safe for investment?

FDs in commercial banks are insured by DICGC up to ₹5 Lakh per depositor per bank. While FDs are very safe, they are not tax-efficient for investors in the 30% tax bracket — post-tax returns may be lower than equity mutual funds over 5+ years.

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Fixed Deposits Updated 3 days ago

Best FD Rates — September 2026

Compare fixed deposit interest rates across 8 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 8 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

Best 5 Years Rate

6.75%

Average Rate

6.38%

Rates Verified

25 Sep 2026

7 Days 1 Month 3 Months 6 Months 1 Year 2 Years 3 Years 5 Years

All Banks Public Sector Private Small Finance

FD Rates — 5 Years Tenure (sorted by highest rate)

+0.5% extra for Senior Citizens (60+)

Bank	Type	5 Years Rate	Senior Citizen	₹1L for 5 Years	vs SBI
YB Yes Bank 🏆 Best Rate	Private	6.75%	7.25%	₹39,750 interest Maturity: ₹139,750	+6.75%
IB ICICI Bank	Private	6.5%	7.0%	₹38,042 interest Maturity: ₹138,042	+6.5%
IB IndusInd Bank	Private	6.5%	7.0%	₹38,042 interest Maturity: ₹138,042	+6.5%
AB Axis Bank	Private	6.45%	6.95%	₹37,703 interest Maturity: ₹137,703	+6.45%
FB Federal Bank	Private	6.4%	6.9%	₹37,364 interest Maturity: ₹137,364	+6.4%
KM Kotak Mahindra Bank	Private	6.25%	6.75%	₹36,354 interest Maturity: ₹136,354	+6.25%
HB HDFC Bank	Private	6.15%	6.65%	₹35,684 interest Maturity: ₹135,684	+6.15%
IF IDFC First Bank	Private	6.0%	6.5%	₹34,686 interest Maturity: ₹134,686	+6.0%

Yes Bank

Private

6.75%

Sr: 7.25%

🏆 Best Rate for 5 Years

ICICI Bank

Private

6.5%

Sr: 7.0%

IndusInd Bank

Private

6.5%

Sr: 7.0%

Axis Bank

Private

6.45%

Sr: 6.95%

Federal Bank

Private

6.4%

Sr: 6.9%

Kotak Mahindra Bank

Private

6.25%

Sr: 6.75%

HDFC Bank

Private

6.15%

Sr: 6.65%

IDFC First Bank

Private

6.0%

Sr: 6.5%

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.

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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.