According to BankBazaar.com data compiled as of September 4, 2026, fixed deposit interest rates across different bank categories show significant variations. Foreign banks offer the highest rates, with DBS Bank leading at 6.85% for 1-2 year tenure, while Deutsche Bank provides 7% for the same period. Small finance banks demonstrate the most competitive rates, with ESAF Small Finance Bank offering 8.1% for 3-5 year deposits and Suryoday Small Finance Bank providing 8.25% for the same tenure. Private sector banks maintain competitive rates, with Bandhan Bank offering 7.45% for 1-2 year deposits and Dhanlaxmi Bank providing 7.25% for the same period. Rates are subject to change and fees may reduce earnings, with no minimum amount required to open accounts.
State-owned banks show mixed performance in the current rate environment. Bank of Maharashtra offers 5.25% for less than 1 year and 6.65% for 1-2 year deposits, while Bank of India provides 5.5% for short-term deposits and 6.7% for 1-2 year tenure. Central Bank of India offers 6.5% for less than 1 year and 6.75% for 1-2 year deposits. Notably, State Bank of India maintains 5.9% for less than 1 year and 6.45% for 1-2 year deposits, with rates effective from December 15, 2025.
Private sector banks demonstrate strong competitive positioning in the current rate environment. Axis Bank offers 5.75% for less than 1 year and 6.5% for 1-2 year deposits, while ICICI Bank provides 5.5% for short-term deposits and 6.5% for 1-2 year tenure. HDFC Bank maintains 5.75% for less than 1 year and 6.45% for 1-2 year deposits, with rates effective from August 19, 2026. Kotak Bank offers 6% for less than 1 year and 6.8% for 1-2 year deposits, with rates effective from June 10, 2026.
Small finance banks emerge as the most competitive segment in the current rate environment. Equitas Small Finance Bank offers 7.75% for 3-5 year deposits and 7.1% for 1-2 year tenure, while Suryoday Small Finance Bank provides 8.1% for 3-5 year deposits and 7.8% for 1-2 year deposits. Jana Small Finance Bank offers 7.77% for 3-5 year deposits and 7.3% for 1-2 year tenure. Utkarsh Small Finance Bank provides 7.5% for 3-5 year deposits and 7.25% for 1-2 year tenure, with rates effective from May 2025.
According to BankBazaar.com analysis, fixed interest rates may be subject to revision after specified tenure 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 current rate environment reflects competitive positioning across different bank categories, with foreign banks, small finance banks, and private sector banks offering the most attractive rates for various tenure periods. Rates are subject to change and fees may reduce earnings, with no minimum amount required to open accounts.