Which bank gives the highest FD rate in India 2026?

In 2026, small finance banks and NBFCs offer the highest FD rates. Bajaj Finance offers up to 8.6%, IDFC First Bank up to 7.75%, and Unity Small Finance Bank up to 9.0%. Among major banks, SBI offers up to 7.10%, HDFC Bank up to 7.25%, and ICICI Bank up to 7.20%. Senior citizens get an additional 0.25-0.50% across all banks.

What is the FD rate for senior citizens?

Senior citizens (age 60+) get 0.25% to 0.50% higher FD rates than regular customers at all banks. For example, SBI offers 7.50% for seniors vs 7.10% for regular. HDFC Bank offers 7.75% for seniors. Super senior citizens (80+) may get an additional 0.10-0.25% at select banks.

Is FD interest taxable in India?

Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS at 10% if your annual FD interest exceeds Rs 40,000 (Rs 50,000 for senior citizens). If your total income is below the taxable limit, submit Form 15G (or 15H for seniors) to avoid TDS deduction.

Best FD Rates India 2026 — Bank-by-Bank Comparison

Last updated: June 2026 | 4 min read

Looking for the best fixed deposit rates in India? We compared FD interest rates from all major banks and NBFCs for 2026. Senior citizens get 0.25-0.50% extra at every bank.

Calculate FD Maturity with EMIBharat →

FD Rates Comparison — Major Banks (June 2026)

Bank	1 Year	3 Years	5 Years	Senior Citizen Extra
SBI	6.80%	7.00%	6.50%	+0.50%
HDFC Bank	6.60%	7.10%	7.00%	+0.50%
ICICI Bank	6.70%	7.10%	7.00%	+0.50%
Axis Bank	6.70%	7.10%	7.00%	+0.50%
Kotak Mahindra	6.75%	7.15%	6.20%	+0.50%
IDFC First Bank	7.25%	7.50%	7.75%	+0.50%
Bajaj Finance	7.40%	8.25%	8.60%	+0.25%
Post Office TD	6.90%	7.00%	7.50%	N/A

Rates are indicative and subject to change. Check with the respective bank for latest rates. Highlighted rows show highest rates.

FD Maturity Example — ₹10 Lakh for 5 Years

Bank	Rate	Maturity Amount	Interest Earned
SBI	6.50%	₹13,70,087	₹3,70,087
HDFC Bank	7.00%	₹14,02,552	₹4,02,552
IDFC First	7.75%	₹14,55,297	₹4,55,297
Bajaj Finance	8.60%	₹15,15,827	₹5,15,827

Difference: Bajaj Finance gives ₹1,45,740 more interest than SBI on the same ₹10 lakh FD for 5 years!

FD Tax Rules — TDS on Fixed Deposits

FD interest is fully taxable as per your income tax slab
TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens)
Submit Form 15G (below 60 years) or Form 15H (senior citizens) to avoid TDS if total income is below taxable limit
5-year tax-saver FD qualifies for Section 80C deduction up to ₹1.5 lakh (Old Regime only)

FD vs Other Investments

Investment	Returns	Risk	Lock-in	Tax Benefit
Bank FD	6.5-8.6%	Very Low	Flexible	80C (5-year FD)
PPF	7.1%	Zero (Govt)	15 years	80C + EEE
Debt Mutual Fund	6-8%	Low	None	Indexation benefit
Equity SIP	12-15%	High (short term)	None	ELSS under 80C
NPS	9-12%	Medium	Till 60	80CCD(1B) extra ₹50K

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