FD Interest Rates 2026: Best Fixed Deposit Rates Compared
Where to Get the Best FD Rates in 2026
FD rates vary significantly across banks — a 1% difference on ₹10 lakh over 5 years means ₹52,000 more interest. Small finance banks and NBFCs typically offer 0.5–1.5% higher rates than large banks, with the same DICGC insurance coverage up to ₹5 lakh.
FD Rate Comparison (General Public)
| Bank/Institution | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.50% |
| HDFC Bank | 6.60% | 7.15% | 7.00% |
| ICICI Bank | 6.70% | 7.10% | 7.00% |
| Post Office TD | 6.90% | 7.10% | 7.50% |
| Small Finance Banks | 7.5–8.5% | 7.5–8.0% | 7.25–7.75% |
Senior citizens typically get 0.25–0.50% extra. Super senior citizens (80+) may get an additional 0.25% at some banks.
Cumulative vs Non-Cumulative FD
- Cumulative: Interest reinvested and compounded quarterly. You receive total amount at maturity. Best for wealth building.
- Non-cumulative: Interest paid monthly/quarterly to your savings account. Best for retirees needing regular income. See also: SCSS for higher rates.
Tax on FD Interest
FD interest is fully taxable at your slab rate. TDS of 10% is deducted if annual interest exceeds ₹40,000 (₹50,000 for seniors). At the 30% slab, a 7% FD effectively yields only ~4.9%. For tax-efficient alternatives, consider ELSS or PPF. Use the FD calculator to compute exact maturity amounts.