According to BankBazaar.com data compiled as of July 31, 2026, fixed deposit interest rates across banks show significant variations across tenure categories. The rates are structured into four distinct categories: less than 1 year, 1 to 2 years, 2 to 3 years, and 3 to 5 years. Foreign banks currently offer the highest rates, with DBS Bank leading at 6.85% for 1-2 year deposits, while Deutsche Bank provides the highest rate at 7% for the same tenure.
In August 2026, small finance banks dominate the senior citizen FD market with Shivalik Small Finance Bank offering the highest rate of 8.50% for deposits with tenure of 23 months 1 day to 27 months. Jana Small Finance Bank provides 8.30% for deposits between 2 years to 3 years, while Unity Small Finance Bank offers 8.30% for deposits of 501 days. Suryoday Small Finance Bank and Utkarsh Small Finance Bank both provide rates above 8.20% for their respective tenures. Among large banks, SBI offers 6.90% for senior citizens compared to 6.40% for regular depositors, while HDFC Bank provides 7.00% and ICICI Bank offers 7.10% for senior citizen deposits.
Among public sector banks, State Bank of India offers the highest rates at 7.05% for 5-10 year deposits, while Central Bank of India provides the highest rate at 6.7% for the same tenure. Bank of Baroda leads in the 3-5 year category with 6.4% rates. Notable performers include Canara Bank at 6.6% for 1-2 year deposits and Indian Bank at 6.8% for the same tenure. As reported by BankBazaar.com, these rates are subject to revision after specified tenures depending on individual bank terms and conditions.
In the private banking sector, Bandhan Bank emerges as the leader with 7.45% rates for 1-2 year deposits, while DCB Bank offers the highest rates at 7.5% for the same tenure. IDFC First Bank provides the highest rates at 7.25% for 3-5 year deposits. Other notable performers include Karur Vysya Bank at 7.2% for 1-2 year deposits and TNSC Bank at 7.6% for the same tenure. According to the data, some banks allow fixed rates only for definite periods, after which prevailing floating rates become applicable.
Kotak Mahindra Bank currently offers the highest senior citizen FD rate of 7.30% for deposits with tenure of 2 years to less than 3 years. Axis Bank and Bank of Baroda follow closely with 7.25% rates under eligible tenures or special deposit schemes. ICICI Bank and Punjab National Bank offer up to 7.10%, while State Bank of India provides 7.05% and HDFC Bank offers 7.00%. These rates are applicable to deposits below ₹3 crore and are subject to change at the discretion of respective banks.
