📈 1. Top FD Interest Rates Across Banks in February 2026

Smaller banks and Small Finance Banks (SFBs) currently lead the FD returns, offering significantly higher rates than most large commercial banks:

Bank / Institution

Highest FD Interest (General)

Tenure / Notes

Unity Small Finance Bank

~8.60% p.a.

Top overall FD rate in 2026

Suryoday Small Finance Bank

~8.40% p.a.

Strong long‑term returns

Utkarsh Small Finance Bank

~8.25% p.a.

Competitive across tenures

Jana Small Finance Bank

~8.20% p.a.

Attractive mid‑range tenure rate

Shivalik Small Finance Bank

~8.05% p.a.

Another high SFB option

Bandhan Bank

~7.75% p.a.

Good pick among traditional banks

DCB Bank

~7.75% p.a.

Solid private bank FD rate

✅ Key takeaways: Small finance banks tend to offer the highest FD rates in February 2026 — often above 8 % per year for general depositors.

🏦 2. Public Sector and Major Banks

While larger banks typically offer lower rates than SFBs, some still provide competitive returns on specific tenures:

Bank Name

Approx. Highest FD Rate (General)

Punjab and Sind Bank

~7.40% p.a.

State bank of india (SBI)

~7.29% p.a.

Bank of Baroda

~7.25% p.a.

Canara Bank

~7.25% p.a.

Central bank of India

~7.10% p.a.

Punjab National Bank

~7.25% p.a.

👉 Even many public banks now offer FD interest above 7 % on select tenures, especially around 400‑500 day or 3‑5 year deposits — which can be attractive for conservative investors.

👵 3. Senior Citizens: Extra Interest Perks

Most banks add an extra 0.25%–0.50% to FD interest rates for senior citizens (60+), making the returns even more lucrative:

Examples:

  • Suryoday Small Finance bank — up to 8.80–9.10% for senior citizens.
  • Punjab and Sind bank — up to 7.90%.
  • SBI — up to ~7.82% for select tenure.

👉 Senior citizens should always check the senior bonus on FD offerings before booking.

🧾 4. Repo Rate & Interest Outlook

The Reserve bank of india (RBI) kept the repo rate steady at 5.25% in early February 2026, which suggests that FD rates may remain stable in the near term rather than rising sharply or falling quickly. This stability gives savers a good environment to lock in current rates.

📊 5. Tips for Choosing the Best FD

✔ Compare tenure‑wise rates (short vs long) — some banks offer higher returns for specific durations.
✔ Lock in senior citizen bonuses if applicable.
✔ Remember deposits up to ₹5 lakh per bank are insured by DICGC (for scheduled banks).
✔ Smaller banks often pay higher rates but also consider safety and credit ratings.

📌 Summary

If you’re looking to earn the highest fixed deposit returns in February 2026, small finance banks such as Unity, Suryoday, Utkarsh, and Jana Small Finance Bank are topping the charts with ~8%+ interest for general investors, and even higher rates for senior citizens. Traditional large banks like SBI, punjab and Sind bank, and Canara Bank also offer respectable 7 %+ returns on selected tenures.

 

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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Kokila Chokkanathan

10/02/2026 02:44 PM