Fixed Deposits remain one of India's most popular investments — safe, guaranteed and simple. But FD rates vary significantly across banks. Choosing the wrong bank can cost you thousands of rupees per year.
Best FD Rates — Major Banks 2026
SBI Fixed Deposit Rates
| Tenure | General | Senior Citizen |
|---|---|---|
| 7-45 days | 3.50% | 4.00% |
| 180-210 days | 6.25% | 6.75% |
| 1-2 years | 6.80% | 7.30% |
| 2-3 years | 7.00% | 7.50% |
| 5-10 years | 6.50% | 7.50% |
Best SBI FD: 2-3 years at 7.00% (general) / 7.50% (senior citizen)
HDFC Bank FD Rates
| Tenure | General | Senior Citizen |
|---|---|---|
| 1-2 years | 7.00% | 7.50% |
| 2-3 years | 7.00% | 7.50% |
| 5-10 years | 7.00% | 7.75% |
Post Office Term Deposit Rates
| Tenure | Rate |
|---|---|
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 years | 7.50% (80C eligible!) |
Best FD Rates — Small Finance Banks 2026
| Bank | Best Rate | Tenure |
|---|---|---|
| Unity Small Finance Bank | 9.00% | 1001 days |
| Suryoday Small Finance Bank | 8.60% | 2-3 years |
| Utkarsh Small Finance Bank | 8.50% | 2 years |
| Jana Small Finance Bank | 8.25% | 1-2 years |
Are Small Finance Banks safe? Yes — DICGC insures deposits up to ₹5 lakh per depositor per bank.
FD vs Other Investments
| Investment | Returns | Risk | Tax |
|---|---|---|---|
| Bank FD | 7-9% | Zero | Fully taxable |
| PPF | 7.1% | Zero | Tax-free |
| Equity Mutual Fund | 12%+ | High | Partially taxable |
Tax on FD Interest
FD interest is fully taxable as per your income tax slab. If you're in the 30% slab, your effective FD return of 7% becomes just 4.9% after tax — which barely beats inflation!
TDS on FD: Banks deduct 10% TDS if interest exceeds ₹40,000 per year. Submit Form 15G (below 60) or 15H (senior citizens) if your total income is below taxable limit to avoid TDS.
Use our FD Calculator to calculate your exact maturity amount. Also compare with RD Calculator for monthly savings.
Disclaimer: FD rates mentioned are indicative and subject to change. Always verify current rates with your bank before investing. The Invest Mate is not SEBI registered.
