FD Rates Across 40 Banks: May 2026 Snapshot
A data-driven comparison of fixed deposit rates across 40 scheduled commercial banks and small finance banks in India. We break down the best rates by tenure, highlight where small finance banks outperform large banks, and show how senior citizen premiums change the equation.
Fixed deposit rates vary significantly across India's 40+ scheduled commercial banks. The spread between the highest and lowest rates on the same tenure can exceed 2.5 percentage points — a difference that translates to lakhs of rupees on large deposits over multi-year tenures.
This data study maps the FD rate landscape as of May 2026, covering public sector banks, large private banks, and small finance banks. We break down rates by tenure (1-year, 2-year, 3-year, and 5-year), show where the best value lies, and quantify the senior citizen premium across banks.
Use our FD Maturity Calculator to see exactly how much your deposit will grow at any rate and tenure. For a deeper look at top-performing FDs, see our Best FD in India 2026 guide.
Data Sources
- RBI Monetary Policy & Repo Rate (May 2026) — www.rbi.org.in
- SBI FD Interest Rates (May 2026) — sbi.co.in
- HDFC Bank FD Rates (May 2026) — www.hdfcbank.com
- Small Finance Bank Rate Cards (AU, Suryoday, Unity) (May 2026) — www.aubank.in
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Best FD Rates by Tenure: May 2026
The chart below maps the highest FD rates available across 40 banks for each major tenure bucket. Small finance banks dominate the top end, while large private banks cluster in the 7.0-7.2% range.
📊 Chart: Best FD rates by tenure (1yr, 2yr, 3yr, 5yr) across 40 banks
Interactive chart coming soon
1-Year FD Rates: Top Performers
The 1-year tenure is the most competitive. Small finance banks offer 8.0-9.0%, while large banks cluster around 7.0-7.15%. The standout performers for general customers:
- Unity Small Finance Bank: 9.00%
- Suryoday Small Finance Bank: 8.50%
- AU Small Finance Bank: 8.00%
- IndusInd Bank: 7.75%
- IDFC First Bank: 7.50%
- Kotak Mahindra Bank: 7.20%
- HDFC Bank: 7.10%
- SBI: 7.00%
2-Year FD Rates
The 2-year tenure shows a similar pattern. Small finance banks lead at 7.75-8.75%, while large banks offer 7.0-7.15%. This tenure is popular for investors who want to lock in current high rates without committing to a 5-year horizon.
3-Year FD Rates
At the 3-year mark, rates flatten slightly. The best available rates range from 7.25% (large banks) to 8.50% (SFBs). Most large banks offer 6.8-7.1% for this tenure.
5-Year FD Rates
Five-year FDs are relevant for tax-saving under Section 80C (Old Regime). Rates here range from 6.5% (SBI) to 7.75% (select SFBs). Note that 5-year rates at large banks are often lower than their 1-year rates, reflecting expectations of future rate cuts.
Senior Citizen FD Rates: The +0.5% Premium
Senior citizens (aged 60+) receive a rate premium at virtually every bank in India. The premium typically ranges from 0.25% to 0.50%, though some banks offer up to 0.75% extra. Super senior citizens (aged 80+) may get an additional 0.25% at select banks.
📊 Chart: Senior citizen premium by bank (0.25% to 0.75% range)
Interactive chart coming soon
For a senior citizen with ₹15 lakh in FDs, the 0.50% premium adds ₹7,500 per year in extra interest. Combined with Section 80TTB (₹50,000 deduction on deposit interest under the Old Regime), FDs remain one of the most efficient investment options for retirees.
Public Sector vs Private vs Small Finance Banks
Across 40 banks, a clear tiering emerges in FD rates:
- Public sector banks (SBI, PNB, BoB, Canara): 6.5-7.1% — lowest rates, but perceived as safest
- Large private banks (HDFC, ICICI, Axis, Kotak): 7.0-7.25% — slightly higher, with better digital experience
- Mid-size private banks (IndusInd, IDFC First, Yes): 7.25-7.75% — competitive rates with wide branch networks
- Small finance banks (AU, Unity, Suryoday, Equitas): 8.0-9.25% — highest rates, same DICGC insurance up to ₹5 lakh
The perception that public sector banks are “safer” than SFBs is not accurate from a depositor's perspective. DICGC insurance covers ₹5 lakh per depositor per bank regardless of the bank's ownership. For amounts above ₹5 lakh, spreading deposits across multiple banks provides full coverage at the highest available rates.
Rate Outlook: Will FD Rates Fall?
The RBI has begun an easing cycle, with the repo rate expected to decline 50-75 basis points through the rest of 2026. Banks typically reduce FD rates 1-3 months after an RBI rate cut. This means the current elevated rates are likely at or near their peak.
If you have surplus funds earmarked for safe investments, locking in a 2-3 year FD now secures today's peak rates for the full tenure. Use a laddering approach to maintain liquidity while capturing high rates — see our Best FD in India guide for a step-by-step laddering strategy.
NISM XIX-C certified · Partner, Tykhe Ventures (SEBI AIF Cat II) · Founder, RupayWise
Ganesh Kompella is NISM Series XIX-C certified — the certification for Alternative Investment Fund managers — and a Partner at Tykhe Ventures, a SEBI-registered Category II AIF (~$20 M AUM). He's a self-taught engineer who built RupayWise and its 230+-test calculation engine because India's finance tools were built to sell products, not to help you decide. RupayWise is an educational platform — not a SEBI-registered Investment Adviser.
Important: This guide is for informational and educational purposes only. While we strive for accuracy, tax laws, interest rates, and financial regulations change frequently. Always verify current rates and rules with official government sources before making decisions.
Frequently Asked Questions
Which bank offers the highest FD rate in India in May 2026?
Among scheduled commercial banks, Unity Small Finance Bank offers up to 9.0% for general customers and up to 9.50% for senior citizens on select tenures. Among large private banks, IndusInd Bank (7.75%) and IDFC First Bank (7.50%) lead. SBI, HDFC, and ICICI offer 7.0-7.1% for 1-year FDs.
How much extra interest do senior citizens get on FDs?
Most banks offer 0.25% to 0.50% extra on FD rates for senior citizens (aged 60+). Some small finance banks offer up to 0.75% additional. Super senior citizens (aged 80+) may get a further 0.25% at select banks. This premium applies across all tenures and can add up to ₹50,000+ in extra interest on a ₹10 lakh deposit over 5 years.
Are small finance bank FDs safe for large deposits?
Yes. All small finance banks are RBI-regulated and deposits up to ₹5 lakh per depositor per bank are insured by DICGC, the same insurance that covers SBI deposits. For amounts above ₹5 lakh, spread your deposits across multiple banks so each stays within the insurance limit.
Why do small finance banks offer higher FD rates than SBI or HDFC?
Small finance banks need retail deposits to fund their lending operations. Unlike large banks that can rely on CASA (current account savings account) deposits and corporate funding, SFBs compete for individual deposits by offering higher rates. This is a structural feature of their business model, not an indicator of higher risk.
Related Resources
Guides
- Best FD Guide — Compare FD rates across top banks and small finance banks. Tax treatment, laddering strategy, and FD vs alternatives.
Disclaimer: This guide is for educational and informational purposes only. FD interest rates change frequently and the rates mentioned here are indicative as of the date shown. Always verify the latest rates on the bank’s official website before investing. Deposits up to ₹5 lakh are insured by DICGC. Past rates are not indicative of future rates. Consult a SEBI-registered investment advisor or qualified tax professional before making financial decisions.