Fixed deposit (FD) interest rates across major banks

The table above is a dated comparison of callable retail fixed deposits from seven major banks. It is a starting point, not a promise that the displayed rate will still be available when you book. Bank rates can change without notice, and a difference of one day in tenure can move your deposit into another rate bucket.

Use the table to shortlist a bank, then confirm the exact rate, maturity date and premature-closure terms on the bank’s booking screen. The highest advertised rate is useful only if its exact tenure matches when you need the money.

What this comparison includes

The comparison covers SBI, HDFC Bank, Kotak Mahindra Bank, Bank of Baroda, Punjab National Bank, Canara Bank and Union Bank of India. These banks were included because their current retail schedules could be checked against accessible first-party pages.

For a like-for-like comparison, the scope is deliberately narrow:

• Resident domestic fixed deposits
• Deposits below ₹3 crore
• General-public and resident senior-citizen rates
• Callable deposits, where premature withdrawal is ordinarily allowed
• Nominal interest rates per annum, before tax

The table excludes non-callable deposits, bulk deposits, NRE and NRO deposits, staff rates, small finance banks, foreign banks, co-operative banks, NBFC deposits and company fixed deposits. Their rates may be higher, but adding them would mix different liquidity, eligibility and credit-risk conditions.

Each row has two dates that matter. “Checked on” tells you when the source was reviewed; “effective from” is the date printed by the bank on that rate schedule. The latter controls the quoted rate. A page reviewed today may still display a schedule that became effective several months ago.

This is also why the comparison does not claim to identify the “best FD in India”. It compares a defined set of mainstream banks under defined conditions. A bank outside the set may pay more, and one inside it may revise its rate tomorrow.

The exact tenure matters

FD rates are not a smooth line in which a longer deposit always earns more. Banks divide maturities into precise buckets: one year, more than one year, 400 days, 444 days, 555 days, two years to less than three years, and so on.

A headline maximum may apply only to one special tenor. If a bank pays its peak rate for 444 days, choosing 443 or 445 days can produce a different rate. Similarly, “about three years” is not precise enough when the rate schedule distinguishes three years from three years and one day.

Some special tenors also impose a minimum ticket. Canara Bank’s starred 555-day peak, for example, requires a single deposit of at least ₹5 lakh. A smaller deposit cannot claim that row merely by choosing the same number of days.

Start with the date on which you may need the money. Then compare the rates available at or before that date. Do not extend a deposit by several months merely to earn another 10 or 20 basis points unless the money is genuinely not required.

Special-tenor deposits create a second problem: renewal. A 555-day rate available today may disappear before maturity. If auto-renewal is enabled, the bank normally renews at the rate then applicable, not the original rate. Treat every maturity as a fresh decision.

The final booking screen and deposit receipt should show the principal, contracted rate, maturity date and maturity value. Save them. They are better evidence than a screenshot of a rate page taken after the bank changes its schedule.

Nominal rate is not the same as yield

Bank FD tables normally quote a nominal annual rate. What reaches you depends on how interest is calculated and paid.

A cumulative FD keeps the interest inside the deposit and generally compounds it at the bank’s prescribed interval, commonly quarterly. At a nominal 6.50% compounded quarterly, the effective one-year yield is about 6.66% before tax. The exact maturity amount can still vary with the bank’s day-count method and the number of complete and incomplete quarters.

A non-cumulative FD pays the interest out. Quarterly payouts do not compound because the money leaves the deposit. Monthly payouts are commonly calculated at a discounted rate, so multiplying one month’s credit by 12 may not reproduce the maturity yield of a cumulative deposit.

Short deposits may use simple interest rather than compounding. The cut-off and calculation method are bank-specific, so a six-month FD should not be compared with a multi-year cumulative FD using only the headline percentage.

Use the FD interest rates calculator to compare maturity values on the same principal and tenure. Choose cumulative if the money is meant to grow; choose a periodic payout only when the income is needed. A higher nominal rate with monthly withdrawals can leave less at the end than a slightly lower cumulative rate.

Callable does not mean cost-free withdrawal

Every rate in this comparison is from a callable schedule. That means premature closure is generally possible; it does not mean the bank will pay the contracted rate until the day you leave.

Most banks use a two-step calculation. First, they identify the rate that was available on the original booking date for the period the money actually remained with the bank. They then deduct the applicable premature-withdrawal penalty. Some terms instead refer to the lower of that rate and the contracted rate before applying the penalty.

Suppose you book a two-year FD and close it after ten months. The starting point is usually the ten-month rate that applied when you booked, not the two-year rate minus a small charge. If shorter-tenor rates were much lower, the lost interest can exceed the stated penalty.

Check four things before booking:

1. The rate used when a deposit is closed early
2. The penalty percentage
3. Whether partial closure is allowed
4. Whether the penalty is waived for your customer category or product

Non-callable deposits may offer more but cannot ordinarily be broken before maturity. Five-year tax-saving FDs also carry a statutory lock-in and sit outside this comparison.

If the cash need is temporary, closing the FD may not be the cheapest answer. A loan against the FD can preserve the deposit while charging a spread over its rate, though the interest, fees and repayment period still need comparing with the closure loss.

Senior-citizen rates need their own check

Do not assume that every bank adds a flat 0.50 percentage point to every public rate. The premium can change with the tenure, and a bank’s public peak and senior peak need not differ by the same amount. HDFC Bank’s current schedule is one example: its peak senior rate cannot be reproduced by automatically adding half a percentage point to the public peak.

Senior rates generally require a resident individual aged 60 or above, but the operational rules matter. In a joint FD, the eligible senior may need to be the first holder. NRE and NRO deposits commonly do not receive the domestic senior premium. Some banks also publish separate super-senior rates for customers aged 80 or above.

Confirm the customer category on the receipt. If an FD is mistakenly opened at the general rate, age proof supplied elsewhere in the bank may not automatically correct it.

Retirees should also compare the deposit with the Senior Citizens Savings Scheme. The choice involves payout frequency, sovereign backing, investment ceiling and exit rules, not merely the highest displayed percentage. Our SCSS versus FD comparison works through that decision.

Laddering reduces timing risk

Putting the full amount into the highest-rate tenor makes one large bet on today’s rate and one future renewal date. An FD ladder spreads both liquidity and reinvestment risk.

For example, instead of placing ₹10 lakh into one five-year FD, divide it into five ₹2 lakh deposits maturing in one, two, three, four and five years. When the first matures, use what you need and, if appropriate, renew the balance for five years. Repeat each year. Once established, one rung matures annually.

A ladder helps in three ways:

• Some money becomes available regularly without breaking every deposit.
• The whole corpus is not locked at one point in the interest-rate cycle.
• You can redirect a maturity when goals, banks or rates change.

The right rungs should follow planned expenses. School fees due in 18 months belong in a deposit maturing before then, not in a 555-day special merely because it pays more. Emergency money should remain in a savings account or very short deposit that can be reached immediately.

Laddering across tenures at one bank does not create extra deposit-insurance cover. If safety limits matter, spread the rungs across separately insured banks as well.

DICGC cover is per depositor per bank

DICGC covers eligible deposits up to ₹5 lakh, including principal and accrued interest, per depositor per bank in the same right and capacity, after lawful set-off of dues. It is not ₹5 lakh per FD, account, branch or banking app.

Your savings balance, recurring deposits, fixed deposits and accrued interest at every branch of the same bank are aggregated. Five ₹2 lakh FDs at one bank do not create ₹10 lakh of insurance.

If staying fully within the cover is important, leave room for interest. A principal of exactly ₹5 lakh exceeds the limit as soon as interest accrues. Also confirm that two brands or apps are not merely channels of the same licensed bank.

Accounts at separately licensed banks receive separate assessment. Joint accounts may constitute a different right and capacity, but ownership order and grouping matter; do not rely on casual rearrangement of names as a substitute for diversification.

The full mechanics, including joint accounts, co-operative banks and claim timing, are covered in DICGC deposit insurance. Insurance is a settlement mechanism, not instant emergency liquidity, so keep day-to-day cash at an operationally independent bank.

Tax and TDS change the return

FD interest is taxable at your applicable slab rate as income from other sources. A cumulative deposit does not postpone all tax until maturity: interest is ordinarily taxed as it accrues each financial year, even though the bank retains it.

At current thresholds, a bank deducts TDS when annual interest crosses ₹50,000 for most resident depositors or ₹1,00,000 for resident senior citizens. The normal TDS rate is 10% where PAN is available. These thresholds are applied across branches of the same bank, not separately to each FD.

TDS is only tax collected in advance. A person in a higher slab may still owe more; someone with no final liability may need to file a return to claim a refund. Interest below the TDS threshold remains taxable.

Keep PAN updated, download the annual interest certificate, and reconcile the bank’s figure with the Annual Information Statement before filing. The maintained guide to tax on FD interest covers current thresholds, the prescribed non-deduction declaration and the difference between TDS and final tax.

Compare post-tax returns, not just card rates. A 7% FD does not leave 7% in the hands of a taxpayer whose marginal rate is 20% or 30%.

Checklist before booking

Before transferring the money, confirm:

• The legal name of the bank and that this is a bank deposit, not an NBFC or company deposit
• The deposit is below the stated amount ceiling and uses the callable schedule
• The exact number of days or months, contracted rate and maturity date
• Whether the rate is an ordinary or special-tenor rate
• Cumulative, monthly or quarterly payout, and the resulting maturity value
• General, senior or super-senior customer category
• The rate and penalty applied on premature or partial closure
• Auto-renewal instructions and the account receiving maturity proceeds
• Nominee details and joint-holder order
• Total principal plus expected interest already held at that bank for DICGC purposes
• PAN, TDS treatment and the annual interest certificate process

Finally, read the rate on the confirmation screen rather than relying on yesterday’s comparison. If the bank offers a different rate, stop and find out why before authorising the deposit. A good FD is not simply the row with the largest number; it is the one whose maturity, liquidity, safety and after-tax return fit the job the money has to do.

Common questions

Which bank has the highest FD rate in this comparison?

The answer depends on the exact tenure and customer category, so the table deliberately shows each bank’s peak rate beside the tenor that earns it. A special 444-day or 555-day deposit is not interchangeable with a one-year deposit. Use the largest number only as a shortlist, then compare banks at the maturity date you actually need and confirm the rate on the booking screen.

Are senior-citizen FD rates always 0.50% higher?

No. Several banks add 0.50 percentage point for eligible resident senior citizens, but the uplift can change by tenure and some banks publish separate super-senior benefits. The senior holder may also need to be the first holder of a joint deposit. Read the exact row and eligibility terms rather than adding 0.50% to a general-public rate yourself.

Is a callable FD free to close early?

No. Callable means premature closure is ordinarily permitted, not free. A bank commonly recalculates interest using the rate that applied on the booking date for the period the money actually remained, then deducts its stated penalty. The lost return can therefore be larger than the penalty percentage alone suggests. Check the recalculation method, penalty and partial-closure rules before booking.

Is ₹5 lakh in every FD insured by DICGC?

No. DICGC aggregates eligible principal and interest across accounts and branches of the same bank, in the same right and capacity, and covers up to ₹5 lakh per depositor per bank after lawful set-off. Multiple FDs at one bank do not create multiple limits. Deposits at separately licensed insured banks are assessed separately.

Is FD interest taxable only when the deposit matures?

No. Interest is generally taxable as it accrues each financial year, including on a cumulative FD that pays at maturity. TDS is only an advance tax credit and may be less or more than the final liability at your slab rate. Reconcile the bank’s annual interest certificate with your Annual Information Statement before filing.

Sources

Rates and rules on this page were read directly from the following sources on the dates shown. Figures change — if you are about to act on one, confirm it at the source.

1. Retail domestic term deposit ratesState Bank of India · checked 27 August 2026
2. Fixed deposit interest ratesHDFC Bank · checked 27 August 2026
3. Fixed deposit interest ratesKotak Mahindra Bank · checked 27 August 2026
4. Callable fixed deposit rates up to ₹10 croreBank of Baroda · checked 27 August 2026
5. Domestic term deposit interest ratesPunjab National Bank · checked 27 August 2026
6. Term deposit rates of interestCanara Bank · checked 27 August 2026
7. Domestic term deposit ratesUnion Bank of India · checked 27 August 2026
8. Guide to deposit insuranceDeposit Insurance and Credit Guarantee Corporation · checked 27 August 2026
9. Income Tax Department e-Filing portalIncome Tax Department · checked 27 August 2026
10. Income-tax Act, 2025 — section 393, tax deducted at sourceIncome Tax Department / CBDT · checked 27 August 2026