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Indian households trust bank fixed deposits (FDs) for their stable returns, but with lenders offering a range of interest rates it’s critical to check terms.
Small finance banks lead the pack
According to the data compiled by Paisabazaar.com, Small finance banks (SFBs) offer the most attractive deposit rates. Slice Small Finance Bank tops the chart, promising 8.50 per cent for FD tenure of just over 18 months. Jana Small Finance Bank offers 8.00 per cent and 8.20 per cent, respectively, for five-year deposits.
Other notable SFB rates:
- Utkarsh Small Finance Bank: 7.65 per cent for 2-3 years
- ESAF Small Finance Bank: 7.60 per cent for 444 days
Small finance banks' FD rates
| Bank Fixed Deposit Rates | ||
| Bank Name | ||
While higher returns are tempting, experts caution that SFBs are relatively new in the finance industry and may carry higher risk than larger banks. Bank deposits of up to Rs 5 lakh are insured under Deposit Insurance and Credit Guarantee Corporation.
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Private-sector banks typically offer lower FD returns compared to SFBs but higher than state-owned banks. SBM Bank India leads, offering 7.50 per cent interest rate for five years. RBL Bank, Bandhan Bank and DCB Bank follow closely, all offering around 7.20 per cent for select tenures.
Other competitive private bank rates include:
- Jammu & Kashmir Bank: 7.30 per cent (888 days)
- IDFC FIRST Bank & IndusInd Bank: around 7.00 per cent (1–2 years)
Large lenders like HDFC Bank and ICICI Bank remain in the 6.40-6.60 per cent range, reflecting their stability but modest payouts.
Private bank FD rates
| Bank Fixed Deposit Rates | ||
| Bank Name | Interest Rates (p.a.) | |
| Highest slab | ||
| % | Tenure | |
| PRIVATE SECTOR BANKS | ||
| Axis Bank | 6.60 | 18 months to 10 years |
| Bandhan Bank | 7.20 | 2 years to less than 3 years |
| City Union Bank | 6.75 | 365 days |
| CSB Bank | 6.80 | 13 months |
| DBS Bank | 6.55 | 376 days to 600 days |
| DCB Bank | 7.20 | 27 months to less than 28 months; Above 60 months to 61 months |
| Federal Bank | 6.70 | 999 days |
| HDFC Bank | 6.60 | 18 months to less than 21 months |
| ICICI Bank | 6.60 | 2 years 1 day to 10 years |
| IDFC FIRST Bank | 7.00 | 450 days to 2 years |
| IndusInd Bank | 7.00 | 1 year 1 month to 2 years |
| Jammu & Kashmir Bank | 7.30 | 888 days |
| Karur Vysya Bank | 6.65 | 333 days |
| Karnataka Bank | 6.65 | 555 days |
| Kotak Mahindra Bank | 6.60 | 391 days to 23 months |
| RBL Bank | 7.20 | 2 years 1 day to 3 years |
| SBM Bank India | 7.50 | 5 years |
| South Indian Bank | 6.60 | 1 year |
| Tamilnad Mercantile Bank | 7.05 | 400 days (TMB400) |
| YES Bank | 7.00 | 18 months 1 day to less than 5 years |
Public-sector banks
Public-sector banks’ fixed deposit rates range from 6.00 to 6.75 per cent. Central Bank of India leads the field with a 6.75 per cent interest rate, while Indian Overseas Bank offers 6.60 per cent. State Bank of India’s special 444-day scheme also offers 6.60 per cent. State Bank of India’s special 444-day scheme offers 6.60 per cent interest.
Other PSB rates include:
- Bank of Maharashtra: 6.70 per cent
- Indian Bank: 6.70 per cent
- Punjab & Sind Bank: 6.70 per cent
Public bank FD rates
| Bank Fixed Deposit Rates | ||
| Bank Name | ||
Small finance banks offer the best rates on short- and medium-term deposits, but investors should check their stability. Opening deposits with multiple financial institutions is a safe investment option.