According to BankBazaar.com data compiled from respective bank websites, fixed deposit interest rates across major financial institutions show significant variations across tenure categories. The rates are subject to revision after specified tenures depending on individual bank terms and conditions. Some banks and financial institutions allow fixed rates only for definite periods, after which prevailing floating rates become applicable.
The Reserve Bank of India's Monetary Policy Committee (MPC) maintained a neutral stance during its June 5, 2026 meeting, choosing to hold the repo rate steady at 5.25%. As per Mint, the MPC unanimously voted to leave the policy repo rate unchanged at 5.25% and continue with its "neutral" stance. RBI Governor Sanjay Malhotra confirmed that the committee felt it would be prudent to wait for greater clarity to emerge amid amplified risks of higher inflation. The RBI had previously cut the policy repo rate by a cumulative 125 basis points in 2025, leading to an 83-basis-point decline in lending rates and 89-basis-point decline in rates on outstanding loans between February 2025 and April 2026.
The Reserve Bank of India (RBI) has listed a total of eleven holidays this month due to national, regional, and religious holidays. Banks across India are open today, June 6, 2026, as it falls on the first Saturday of the month, which is not a bank holiday. Under RBI guidelines, all scheduled and non-scheduled banks observe mandatory closure on all second and fourth Saturdays, as well as every Sunday of the month. There are a total of four Sundays in this month, so banks will remain closed on 7, 14, 21 and 28 June. In addition to Sundays, banks will be closed on 13 June (second Saturday) and 27 June (fourth Saturday). Online banking services remain available across the country during these closures, ensuring uninterrupted access to banking services through UPI, mobile apps, and digital platforms. The only major holiday scheduled to be observed across most states and Union Territories is Muharram on June 26.
Small finance banks continue to lead the fixed deposit rate chart in June, offering returns of up to 8.1% for regular depositors, significantly higher than rates available at most large public and private sector banks. According to Stable Money data, Suryoday Small Finance Bank and Utkarsh Small Finance Bank are currently offering the highest FD rates of 8.1% for regular customers on select tenures. Suryoday offers 8.1% on a 2.5-year deposit, while Utkarsh provides the same rate on a tenure of 1 year and 301 days. Among other small finance banks, Shivalik Small Finance Bank, Jana Small Finance Bank and Slice Small Finance Bank are also offering rates above 7.7% on select tenures. Suryoday Bank and Utkarsh Bank continue to offer rates of 8% or more for regular citizens, as noted by Stable Money CEO Saurabh Jain.
Public sector banks demonstrate varied rate structures with State Bank of India offering 6.45% for 1-2 year tenure, while Bank of Maharashtra provides 6.65% for the same period. Central Bank of India offers 6.65% for 1-2 years, and Canara Bank provides 6.6% for the same tenure. Punjab National Bank offers 6.6% for 1-2 years, with rates effective from June 01, May 27, March 17, and May 10 respectively. Bank of India currently offers the highest rate among major public sector banks at 6.7% for a three-year deposit, while SBI and Bank of Baroda offer maximum rates of 6.45%. Punjab & Sind Bank offers the highest FD interest rate at 6.75% on a 666-day tenure, with Bank of India following at 6.70% on a three-year deposit. Union Bank of India, Bank of Maharashtra and Central Bank of India offer up to 6.65% on select tenures, and Canara Bank, Indian Bank, Indian Overseas Bank and Punjab National Bank provide a maximum interest rate of 6.60%.
Private sector banks show strong performance with DCB Bank leading at 7.50% for 1-2 year tenure, followed by CSB Bank at 7.35% on an 18-month tenure. SBM Bank India provides up to 7.30%, while Bandhan Bank, IDFC FIRST Bank, Jammu & Kashmir Bank and Tamilnad Mercantile Bank offer up to 7.25% on select tenures. RBL Bank provides a maximum FD rate of 7.20%, IndusInd Bank offers a maximum interest rate of 7.00% on deposits with tenures between two and three years. Kotak Mahindra Bank and Federal Bank offer up to 6.80%, while HDFC Bank and ICICI Bank provide a maximum FD rate of 6.50%. Axis Bank offers up to 6.45% on select tenures. Among non-banking financial companies, Bajaj Finance offers up to 7.4%, while Shriram Finance offers up to 7.25%. Yes Bank offers up to 7.25% on select tenures, as reported by BankBazaar.com.
Despite RBI's repo rate cuts, market dynamics show mixed trends with lending rates rising while deposit rates continue to soften. The weighted average lending rate (WALR) on fresh rupee loans rose by 10 basis points to 8.5% in April from 8.4% in March, while the one-year median marginal cost of funds-based lending rate (MCLR) increased to 8.65% in May 2026 from 8.55% in April. By contrast, the weighted average domestic term deposit rate (WADTDR) declined to 5.77% in April, compared with 6.07% in March. Bank credit growth remained robust at 16% year-on-year as of end-April, while deposit growth lagged at 12.3%. The RBI has introduced measures to attract foreign capital and support the rupee amid growing risks from the prolonged West Asia conflict and elevated energy prices. As per Stable Money CEO Saurabh Jain, "For investors looking to lock in higher yields, it is important to compare options across banks rather than limiting themselves to traditional choices. Alongside returns, investors should evaluate factors such as the bank's financial strength, asset quality, investment horizon and liquidity requirements, while staying within the DICGC insurance coverage limit of ₹5 lakh per bank."
