Small finance banks are currently offering the highest fixed deposit rates in the market, with Suryoday Small Finance Bank leading at 8.10% per annum for a 30-month tenure. According to reports from Mint, Jana Small Finance Bank follows closely with 8.00% interest for deposits above 2 years to 3 years. This positions small finance banks ahead of major private and public sector banks in the current interest rate environment.
Among traditional banks, Kotak Mahindra Bank offers 6.80% interest for deposits between 2 years to less than 3 years, while Nainital Bank provides 6.60% for tenures above 18 months to 2 years. HDFC Bank and ICICI Bank both offer 6.50% for specific tenures - HDFC Bank for 3 years 1 day to less than 4 years 7 months and ICICI Bank for 3 years 1 day to 10 years. State Bank of India rounds out the comparison with 6.45% for its 444-day Amrit Vrishti deposit scheme.
For Non-Resident Indians, NRE fixed deposit rates from DCB Bank, YES Bank, RBL and other banks offer NRIs returns of up to 7.50% on deposits of up to ₹1 crore. According to Mint, DCB Bank offers 7.50% for deposits with tenures of two to less than three years and beyond five years. YES Bank provides 6.90-7.25% for various tenures, while RBL Bank offers 7.00-7.20%. Jammu & Kashmir Bank and Tamilnad Mercantile Bank also feature competitive rates in the 6.70-7.30% range for specific tenures.
As reported by Mint, the current high FD rates come amid volatile global conditions including the US-Iran conflict and Russia-Ukraine war, which have disrupted global peace and supply chains while raising oil and gas prices. These geopolitical tensions have resulted in serious underperformance in Indian equity markets, making fixed deposits a preferred investment option for stability and predictable returns. Investors are advised to compare tenures beyond just headline rates, verify withdrawal penalties and DICGC insurance coverage up to ₹5 lakh per depositor per bank.
