Maturity Amount ₹1,40,255
Principal Amount ₹1,00,000
Interest Earned ₹40,255
Maturity Amount ₹1,40,255

Fixed Deposit Interest Rates from Major Indian Banks (2026)

Fixed Deposits remain one of the safest investment options in India with guaranteed returns. Here are the current FD rates from leading banks for general customers (1-year to 5-year tenure).

A = P × (1 + r/n)n×t

P = Principal (deposit amount)

r = Annual interest rate (in decimal, e.g. 7% = 0.07)

n = Compounding frequency per year (4 for quarterly)

t = Tenure in years

Interest Earned = A − P

SBI FD Rates

State Bank of India offers FD rates between 6.50% to 7.10% p.a. for general customers. Senior citizens get an additional 0.50% above the regular rate. SBI FDs are available for tenures from 7 days to 10 years. The 5-year tax-saving FD qualifies for deduction under Section 80C.

HDFC Bank FD Rates

HDFC Bank offers FD rates up to 7.00% p.a. for regular customers. Senior citizens receive an additional 0.50% premium. HDFC FDs can be booked online through net banking or the mobile app. Auto-renewal and sweep-in facility are available.

ICICI Bank FD Rates

ICICI Bank offers FD rates up to 6.90% p.a. for general depositors. Senior citizens get up to 0.50% extra. ICICI offers a green FD option and special rates for NRIs on FCNR and NRE deposits. Premature withdrawal facility is available with a penalty.

Key Facts About Fixed Deposits in India

DICGC Insurance

All bank FDs in India are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation) up to ₹5 lakhs per depositor per bank, covering both principal and interest.

TDS on FD Interest

Banks deduct TDS at 10% if your annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

Tax-Saving FD

A 5-year tax-saving FD qualifies for a deduction of up to ₹1.5 lakhs under Section 80C of the Income Tax Act. However, the interest earned is fully taxable as per your income slab.

Premature Withdrawal

Most banks allow premature withdrawal of FDs with a penalty of 0.5% to 1% on the applicable rate. Tax-saving FDs (5-year lock-in) do not allow premature withdrawal before maturity.

Frequently Asked Questions About Fixed Deposits

What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a financial instrument offered by banks and NBFCs in India where you deposit a lump sum for a fixed tenure at a predetermined interest rate. FDs are among the safest investment options, offering guaranteed returns regardless of market conditions.

The interest is typically compounded quarterly by most Indian banks. At maturity, you receive your principal plus the accumulated compound interest. FDs can be opened for tenures ranging from 7 days to 10 years depending on the bank.

What are the current FD interest rates in India in 2026?

FD interest rates in India in 2026 vary by bank and tenure. Here are rates from major banks for general customers:

  • SBI — 6.50% to 7.10% p.a.
  • HDFC Bank — up to 7.00% p.a.
  • ICICI Bank — up to 6.90% p.a.
  • Axis Bank — up to 7.00% p.a.
  • Bank of Baroda — up to 7.05% p.a.

Senior citizens typically receive an additional 0.25% to 0.50% above the regular rate. Rates are subject to change based on RBI monetary policy.

What is the difference between an FD and a savings account?

The key differences between a Fixed Deposit and a savings account are:

  • Interest Rate: FDs offer 6-7.5% p.a. while savings accounts offer 3-4% p.a.
  • Liquidity: Savings accounts allow unlimited withdrawals; FDs have a fixed lock-in period.
  • Returns: FD rates are fixed at the time of deposit; savings account rates can change anytime.
  • TDS: FD interest attracts TDS above ₹40,000/year; savings account interest is tax-free up to ₹10,000 under Section 80TTA.
  • Insurance: Both are covered under DICGC up to ₹5 lakhs per depositor per bank.

FDs are ideal for parking surplus funds for a known duration, while savings accounts suit daily transactional needs.