Fig 1: Market Analysis of Fixed Deposit Trends in 2026
If you are looking for safe investment options in 2026, Fixed Deposits (FDs) remain the king of stability. However, the gap between the "Big Banks" and "Small Finance Banks" has widened significantly.
While industry giants like SBI, HDFC, and ICICI are offering decent stability, the real goldmine for returns in 2026 lies elsewhere. Some banks are now offering FD rates as high as 9.1% for senior citizens.
In this detailed guide by the OneHisaab Editorial Team, we will analyze FD rates of all banks for 2026, helping you beat inflation while keeping your principal safe.
Table of Contents:
FD Rates Market Snapshot 2026
Before we look at the detailed tables, let's look at the visual difference in returns. Investing ₹1 Lakh in a standard bank vs. a high-yield bank makes a significant difference over 5 years.
Average Interest Rate Comparison (1 Year Tenure)
*Rates are indicative for General Public. Senior Citizens get +0.50% extra.
Public Sector Banks FD Rates 2026
Government-backed banks (PSUs) are the first choice for conservative investors. For 2026, the rates have stabilized after the Repo Rate adjustments.
| Bank Name | 1 Year Rate | 3 Year Rate | Highest Rate (Tenure) |
|---|---|---|---|
| SBI (State Bank of India) | 6.80% | 6.75% | 7.10% (400 Days) |
| Punjab National Bank (PNB) | 6.75% | 7.00% | 7.25% (444 Days) |
| Bank of Baroda | 6.85% | 7.15% | 7.25% (399 Days) |
| Canara Bank | 6.85% | 6.80% | 7.25% (444 Days) |
| Union Bank of India | 6.75% | 6.50% | 7.30% (399 Days) |
Private Sector Banks: HDFC, ICICI, Axis
Private banks generally offer better service and slightly higher rates than PSUs. For 2026, HDFC and ICICI are neck-to-neck in their offerings.
| Bank Name | General Citizen | Senior Citizen | Best Tenure |
|---|---|---|---|
| HDFC Bank | 7.25% | 7.75% | 18 to 21 Months |
| ICICI Bank | 7.20% | 7.75% | 15 to 18 Months |
| Axis Bank | 7.10% | 7.85% | 17 to 18 Months |
| Kotak Mahindra | 7.40% | 7.90% | 390 Days |
| IndusInd Bank | 7.75% | 8.25% | 1 Year to 2 Years |
Small Finance Banks: The 9% Club
This is where the real action is in 2026. Small Finance Banks (SFBs) are regulated by RBI just like big banks, but they offer aggressive rates to attract deposits. Deposits up to ₹5 Lakh are insured by DICGC, making them safe up to that limit.
| Bank Name | Regular Rate | Senior Citizen Rate |
|---|---|---|
| Unity Small Finance | 7.85% | 9.00% + |
| Suryoday SFB | 8.60% | 9.10% |
| Utkarsh Small Finance | 8.50% | 9.10% |
| Jana Small Finance | 8.50% | 9.00% |
| Equitas SFB | 8.20% | 8.70% |
Calculate Your Maturity Amount
Knowing the rate is one thing, but knowing exactly how much money will come into your bank account is another. Interest compounding (Quarterly vs Monthly) can change your final amount.
Don't do manual math!
Use our advanced 2026 FD Calculator to check your maturity value instantly. It supports cumulative, non-cumulative, and tax deductions.
Open FD Calculator Now ➜Frequently Asked Questions (FAQ)
Which bank has the highest FD rate in 2026?
Currently, Unity Small Finance Bank and Suryoday SFB are offering the highest rates, touching up to 9.1% for Senior Citizens on specific tenures.
Is FD interest tax-free in 2026?
No, FD interest is fully taxable as per your income tax slab. Banks deduct 10% TDS if interest exceeds ₹40,000 (₹50,000 for seniors) in a financial year.
Is it safe to invest in Small Finance Banks?
Yes, Small Finance Banks are regulated by the RBI. Your deposits are insured up to ₹5 Lakh by DICGC, just like in HDFC or SBI.
Disclaimer: Interest rates are subject to change by banks without prior notice. Please verify with the respective bank branch before investing. This content is for informational purposes only.