Fixed deposits remain one of India’s most trusted savings instruments — guaranteed returns, no market risk, and predictable income. But with <cite index=”5-1″>FD interest rates ranging from 2.50% to 8.10% per annum across different banks as of July 2026</cite>, choosing the wrong bank means leaving real money on the table.
This guide gives you the latest FD rates across all bank categories — public sector, private, and small finance banks — and shows you exactly how to use RateCalc to calculate and compare what your money actually earns at each rate.
Latest FD Interest Rates — July 2026
Major Public Sector Banks
<cite index=”10-1″>State Bank of India offers its highest FD interest rate of 6.45% on the 444-day Amrit Vrishti deposit scheme. The bank offers 6.25% on one-year deposits and 6.30% on three-year deposits. Punjab National Bank leads public sector banks at 6.60%.</cite>
| Bank | Best Rate | Best Tenure |
|---|---|---|
| Punjab National Bank | 6.60% p.a. | Select tenures |
| SBI (Amrit Vrishti) | 6.45% p.a. | 444 days |
| Bank of Baroda | 6.25–6.60% p.a. | 1–3 years |
Major Private Banks
<cite index=”10-1″>HDFC Bank, ICICI Bank and Axis Bank offer up to 6.50% per annum. Kotak Mahindra Bank and Federal Bank offer up to 6.80%.</cite>
| Bank | Best Rate | Best Tenure |
|---|---|---|
| Kotak Mahindra Bank | 6.80% p.a. | Select tenures |
| Federal Bank | 6.80% p.a. | Select tenures |
| HDFC Bank | 6.50% p.a. | 3 years+ |
| ICICI Bank | 6.50% p.a. | 3 years+ |
| Axis Bank | 6.45% p.a. | Select tenures |
Small Finance Banks — Highest Returns
<cite index=”11-1″>Small finance banks continue to offer the highest FD returns in July 2026. Suryoday Small Finance Bank and Utkarsh Small Finance Bank currently provide the highest interest rate of 8.10% on select tenures. Shivalik Small Finance Bank offers up to 7.80%, while Jana Small Finance Bank provides 7.77%.</cite>
| Bank | Best Rate (General) | Best Rate (Senior Citizens) |
|---|---|---|
| Suryoday Small Finance Bank | 8.10% p.a. | 8.30% p.a. |
| Utkarsh Small Finance Bank | 8.10% p.a. | 8.30% p.a. |
| Ujjivan Small Finance Bank | 7.55% p.a. | 8.05% p.a. |
| Shivalik Small Finance Bank | 7.80% p.a. | — |
| Jana Small Finance Bank | 7.77% p.a. | — |
Rates as of July 2026. Always verify directly with the bank before investing.
The Real Question — What Does the Rate Difference Mean in Rupees?
Most people compare FD rates by the percentage number. But the more useful question is: how many more rupees does a higher rate actually put in your pocket?
This is exactly what RateCalc helps you calculate — the proportional interest earned at different rates, for your specific investment amount.
Use RateCalc to Compare FD Returns — Step by Step
Example: You have ₹2 lakh to invest. SBI offers 6.45% and Suryoday SFB offers 8.10%. Which earns more, and by how much?
Step 1 — Calculate annual interest at each rate:
- SBI at 6.45%: ₹2,00,000 × 6.45 ÷ 100 = ₹12,900 per year
- Suryoday at 8.10%: ₹2,00,000 × 8.10 ÷ 100 = ₹16,200 per year
- Difference: ₹3,300 more per year with Suryoday SFB
Step 2 — Scale to your actual amount using RateCalc:
If ₹2 lakh earns ₹12,900 at SBI per year, what does ₹5 lakh earn?
Open RateCalc and enter:
- Known Price: ₹12,900
- Known Quantity: ₹2,00,000
- New Quantity: ₹5,00,000
- Result: ₹32,250 per year at SBI
Repeat for Suryoday:
- Known Price: ₹16,200
- Known Quantity: ₹2,00,000
- New Quantity: ₹5,00,000
- Result: ₹40,500 per year at Suryoday SFB
For ₹5 lakh invested over 3 years, the difference is ₹8,250 per year × 3 = ₹24,750 more with Suryoday SFB over the full tenure.
Calculate your FD return comparison on RateCalc →
How Much Does ₹1 Lakh Earn at Different FD Rates?
Here is a ready-reference table — use RateCalc to scale these numbers to your actual investment amount:
| FD Rate | Annual Interest on ₹1 Lakh | Monthly Interest |
|---|---|---|
| 6.25% (SBI 1 year) | ₹6,250 | ₹521 |
| 6.45% (SBI Amrit Vrishti) | ₹6,450 | ₹538 |
| 6.50% (HDFC/ICICI) | ₹6,500 | ₹542 |
| 6.80% (Kotak/Federal) | ₹6,800 | ₹567 |
| 7.55% (Ujjivan SFB) | ₹7,550 | ₹629 |
| 8.10% (Suryoday/Utkarsh SFB) | ₹8,100 | ₹675 |
Use RateCalc to instantly find what your actual amount earns:
- Known Price: Interest on ₹1 lakh (from table above)
- Known Quantity: ₹1,00,000
- New Quantity: Your actual investment
- Result: Your annual interest income
Should You Choose a Small Finance Bank for Higher FD Returns?
<cite index=”9-1″>Small finance banks like Ujjivan continue to offer the highest returns — just remember deposits are insured up to ₹5 lakh per bank under DICGC, the same cover that applies to every bank.</cite>
This means up to ₹5 lakh of your FD in any bank — including small finance banks — is government-insured. Beyond ₹5 lakh, there is risk if the bank fails.
Practical guidance:
- For amounts up to ₹5 lakh — small finance bank FDs are a reasonable choice for higher returns within the DICGC insurance limit
- For amounts above ₹5 lakh — split across multiple banks to keep each deposit within the ₹5 lakh insurance limit, or stick with large public/private sector banks for safety
FD Laddering — The Strategy That Beats Locking In at One Rate
<cite index=”9-1″>FD laddering means splitting your amount across multiple tenures — for example ₹3 lakh each in 1-year, 2-year and 3-year FDs. As each matures, you reinvest at the latest rates. This protects you from being locked at low rates for too long and gives you periodic liquidity without breaking FDs.</cite>
How to calculate the laddering benefit with RateCalc:
If ₹3 lakh at 6.50% earns ₹19,500 per year, and you ladder across three equal tranches — use RateCalc to quickly verify each tranche’s return:
- Known Price: ₹19,500 (return on ₹3L at 6.5%)
- Known Quantity: ₹3,00,000
- New Quantity: Your actual tranche size
- Result: Exact return for your specific investment size
Senior Citizens — Extra 0.50% Makes a Meaningful Difference
<cite index=”5-1″>Senior citizens can earn even higher returns, ranging from 8.30% to 8.75% per annum at selected small finance banks and NBFCs. Senior citizens also get an extra 0.50% on most bank FDs. Senior citizens can claim up to ₹50,000 of interest income as deduction under Section 80TTB.</cite>
What 0.50% extra means on ₹5 lakh:
- Extra interest = ₹5,00,000 × 0.5% = ₹2,500 per year more
- Over 3 years = ₹7,500 additional income
Use RateCalc to scale this to your investment amount — if ₹5 lakh earns ₹2,500 extra per year from the senior citizen benefit, how much extra does your amount earn?
Tax on FD Interest — What You Actually Take Home
FD interest is fully taxable as income. TDS (Tax Deducted at Source) is deducted at 10% if your FD interest in a bank exceeds ₹40,000 per year (₹50,000 for senior citizens).
Important: The rate of return comparisons above are pre-tax. Your post-tax return depends on your income tax slab:
| Tax Slab | Effective Post-Tax Return at 8.10% FD |
|---|---|
| 0% (no tax) | 8.10% |
| 5% | 7.70% |
| 20% | 6.48% |
| 30% | 5.67% |
Use RateCalc to calculate post-tax interest: If ₹1 lakh earns ₹8,100 at 8.10%, and you are in the 20% tax bracket:
- Tax on interest = ₹8,100 × 20% = ₹1,620
- Net interest = ₹8,100 – ₹1,620 = ₹6,480
Use RateCalc to scale:
- Known Price: ₹6,480 (net post-tax interest per ₹1L)
- Known Quantity: ₹1,00,000
- New Quantity: Your investment amount
- Result: Your actual post-tax income
Calculate post-tax FD returns on RateCalc →
When Should You Lock In FD Rates?
<cite index=”9-1″>With the repo rate on hold at 5.25% after a series of cuts in 2025, big banks’ FD rates have largely stabilized. Whenever the RBI resumes cutting, FD rates will follow — so today’s longer-tenure rates may look attractive in hindsight. The sweet spot right now is the 2–3 year tenure, where most banks offer their best rates.</cite>
In practical terms: if you believe rates will fall further (as they did through 2025), locking in a 2–3 year FD at today’s rates protects you from the downward movement. If you believe rates might rise, keep to shorter tenures so you can reinvest at higher rates when they come.
FD Interest Rates July 2026 — FAQ
Which bank gives the highest FD interest rate in India right now? <cite index=”11-1″>Suryoday Small Finance Bank and Utkarsh Small Finance Bank offer the highest FD rate of 8.10% per annum for general depositors on select tenures as of July 2026. For senior citizens, rates go up to 8.30%.</cite>
Is SBI FD safe in 2026? Yes — SBI is government-owned and deposits are additionally protected by DICGC insurance up to ₹5 lakh. The trade-off is that SBI’s rates (6.25–6.45%) are lower than private and small finance banks.
Are small finance bank FDs safe? <cite index=”9-1″>Deposits are insured up to ₹5 lakh per bank under DICGC, the same cover that applies to every bank in India.</cite> For amounts within this limit, small finance bank FDs carry the same insurance protection as SBI or HDFC.
When is the best time to invest in an FD in 2026? <cite index=”9-1″>When you lock in an FD today, your interest rate stays fixed for the entire tenure — even if rates fall later.</cite> With rates having already come down from 2024 peaks, locking in a 2–3 year FD at today’s rates is a reasonable strategy before any further RBI cuts.
What is the minimum FD amount in India? Most banks accept FDs starting from ₹1,000. Small finance banks often have minimums of ₹1,000–₹5,000.
Compare your FD returns across banks using RateCalc →
Disclaimer: FD interest rates mentioned are indicative as of July 2026 and subject to change at any time. Always verify current rates directly with your bank before investing. This article is for informational purposes only and does not constitute investment advice.