📈 Top FD Rates Today

In the current environment, Small Finance Banks (SFBs) are leading the market with the highest FD interest rates — often much better than large public or private sector banks:

📌 Highest FD rates available for general investors:

  • Slice Small Finance Bank: ~9.0% p.a. (for ~18‑month special term)
  • Unity Small Finance Bank: ~8.60% p.a.
  • Suryoday Small Finance Bank: ~8.40% p.a.
  • Utkarsh Small Finance Bank: ~8.25% p.a.
  • Jana Small Finance Bank: ~8.20% p.a.

These are among the highest interest rates currently on offer for general depositors (not just senior citizens).

👉 Small finance banks often provide higher FD interest than big banks because they need to attract deposits and grow their customer base.

👴 Even Higher Rates for Senior Citizens

Many banks offer even higher interest rates for senior citizens (age 60+), often adding an extra 0.25%–0.60% above general rates. Some SFBs, in particular, go well beyond 9% for senior citizens:

🔹 Suryoday Small Finance Bank: ~9.10% p.a.
🔹 Unity Small Finance Bank: ~9.10% p.a.
🔹 North east Small Finance Bank: ~9.0% p.a.
🔹 Utkarsh Small Finance Bank: ~8.75% p.a.
🔹 Shivalik Small Finance Bank: ~8.70% p.a.

💡 These very high rates are typically for specific tenures and may be subject to maximum deposit caps (e.g., ₹2 crore) and RBI‑mandated insurance limits.

🏦 How Big Banks Compare

Major public and private sector banks typically offer lower FD rates than small finance banks — but often still decent:

  • State bank of india (SBI): ~6.9%–7.1% p.a.
  • HDFC bank / ICICI Bank: ~7.0%–7.2% p.a.
  • Axis bank / Federal Bank: ~7.1%–7.4% p.a.
  • Deutsche bank / Standard Chartered: ~7.0%–7.5% p.a. (in some tenures)

📌 These banks may also have lower special term rates and typically less variation across tenures compared with SFBs.

🧠 What This Means for You

✔ Higher Returns

If maximizing interest income is your priority, small finance banks currently offer the best FD rates — sometimes topping 9% for senior citizens and ~8%+ for others.

✔ Consider Safety & Insurance

All bank FDs in india are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor per bank.
So if you’re depositing above that limit, consider spreading money across multiple banks for full coverage.

✔ Tenure Matters

Longer FDs (3–5 years) often give slightly higher rates — but not always. Some banks offer their best rates on medium‑term deposits (1.5–3 years).

✔ Senior Citizens Benefit More

If you’re 60+, you almost always get an extra rate uplift — often significantly boosting returns.

📌 Quick Snapshot: Top FD Interest Rates

Bank Category

Approx. Highest FD Rate (General)

Senior Citizen Rate

Small Finance Banks

Up to ~9.0% p.a.

Up to ~9.1% p.a.

Public & Private Banks

~6.9%–7.5% p.a.

~7.5%–8.0% p.a.

📌 Final Tip

Before opening an FD:

  • Always check the exact rate & tenure with the bank representative or official website.
  • Compare cumulative vs non‑cumulative payouts (monthly/quarterly vs lump sum at maturity).
  • Consider your liquidity needs — breaking an FD early usually reduces interest earned.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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Balasahana Suresh

03/02/2026 11:15 AM