Small finance banks continue to offer the highest fixed deposit rates, with Suryoday Small Finance Bank leading at 8.10% for a 30-month tenure, according to the latest data from BankBazaar.com. ESAF Small Finance Bank follows closely with 8.00% on a special 501-day deposit, while Jana Small Finance Bank offers 8.00% for deposits with tenures ranging from 375 to 400 days. Utkarsh Small Finance Bank provides 7.50% for deposits between two and three years, and Equitas Small Finance Bank offers 7.40% for a special 888-day deposit. Other competitive SFB offerings include North East Small Finance Bank at 7.75% for deposits with around 18 months tenure, Ujjivan Small Finance Bank at 7.55% for 991 days to 60 months, and AU Small Finance Bank at 7.10% for 30-36 months. Senior citizens can earn additional benefits across most banks, with ESAF SFB offering up to 8.50% for senior citizens on select tenures.
Private sector banks generally offer lower FD rates compared to small finance banks but remain attractive due to their established presence. DCB Bank leads private sector offerings with 7.5% for select tenures, while IDFC FIRST Bank offers 7.35% for deposits ranging from 500 days to three years. RBL Bank provides 7.2% for deposits between 18 months and three years, and Bandhan Bank offers 7.45% for 2 years to less than 3 years. Other notable private sector banks include Yes Bank at 7.25% for 18 months to less than 24 months, Tamilnad Mercantile Bank at 7.25% for 567 days, and SBM Bank India at 7.85% for above 18 months to less than 2 years 3 days. The latest data shows Karur Vysya Bank offering 7.20% for 18 months to less than 2 years, Kotak Bank at 7.00% for 18 months to less than 2 years, and City Union Bank providing 7.25% for 18 months to less than 2 years.
Public sector banks continue to offer relatively moderate FD rates compared to small finance and private sector banks, providing government-backed stability. Bank of India leads PSB offerings with 6.85% for a 999-day FD, followed by Punjab & Sind Bank at 6.85% for 666 days. Bank of Baroda offers 6.75% under its 555-day BoB Golden Goal Deposit Scheme, while State Bank of India provides 6.45% for its 444-day Amrit Vrishti deposit scheme. Other PSBs include Canara Bank at 6.60% for 555 days, Indian Bank at 6.80% for 555 days, and Punjab National Bank at 6.60% for 444 days. The latest data shows Bank of Maharashtra at 6.65% for 1-2 years, Central Bank of India offering 6.7% for 1-2 years, and Indian Overseas Bank providing 6.4% for 1-2 years.
While higher FD rates can improve returns, investors should consider multiple factors beyond interest rates before committing funds. According to Saurabh Jain, cofounder and CEO of Stable Money, investors should compare FD offerings across banks rather than limiting investments to existing banking relationships. He emphasizes the importance of considering factors such as the bank's financial strength, deposit tenure, liquidity needs, and premature withdrawal rules. Jain also recommends diversifying deposits across multiple institutions while keeping in mind the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance coverage limit of ₹5 lakh per bank. Most banks offer their highest rates on deposits ranging from one year to three years, indicating a preference for medium-term deposits. Investors should also compare tenure-specific rates, premature withdrawal penalties, and senior citizen benefits before locking in funds. The latest data shows that foreign banks like DBS Bank offer 6.85% for 2-3 years, while Deutsche Bank provides 7% for the same tenure.
