Fixed deposits offering up to 8.95% interest in February 2026: Top picks

Fixed deposit rates appear to have peaked after RBI's repo moves. Here's where banks and corporate FDs stand in February 2026 and how seniors can respond

Fixed deposits continue to be among the safest investment options in India, especially for senior citizens who are reluctant to move their savings into market-linked products.

 

Yet, after back-to-back repo rate cuts by the Reserve Bank of India (RBI) in previous Monetary Policy meetings and a status quo in the last one held on February 6, 2026, conservative investors face a different rate environment.

 

Higher-yield options are narrowing, particularly among larger lenders. Adhil Shetty, CEO of BankBazaar, said the scope for further upside in deposit rates remains limited under a steady-rate environment.

 

“Senior citizen premiums remain an advantage, though these too are expected to evolve as banks adjust to a stable but lower reference-rate regime,” he said.

 

For many retirees who rely on interest income, the question is straightforward: how do you make the most of fixed deposits when rates appear to have peaked?

 

What strategies can senior citizens use now?

 

Common approaches include spreading deposits across tenures and keeping some liquidity at hand.

 

• Break deposits into multiple tenures to manage rate swings

• Keep some liquidity through staggered maturities

• Review the mix of bank FDs, corporate FDs and government-backed options

• Match choices with risk appetite, goals and time horizon

 

Siddharth Maurya, Founder and Managing Director, Vibhavangal Anukulakara Pvt Ltd, suggested a simple strategy.

 

“You can consider FD laddering as a practical measure: Divide your money among various periods so that not all the deposits grow at today’s lower rates, and at the same time, there are some maturities which are always coming up to get the better rates if the cycle turns. This way, senior citizens can also opt for a combination of bank FDs, a few corporate FDs, and small savings schemes to get a blend of safety and slightly higher yields rather than sticking to a single product,” said Maurya.

 

Best FD rates in February 2026 

Here is a look at some of the best FD rates in February 2026, according to PaisaBazaar.

 

Small finance banks

 

ESAF Small Finance Bank

Highest interest: 8.10% (444 days)

1 year: 5.25%

3 years: 6.50%

5 years: 6.25%

10 years: 6.25%

Super senior additional rate: None

 

Jana Small Finance Bank

Highest interest: 8% (Above 2 years to 3 years)

1 year: 7.50%

3 years: 8%

5 years: 7.77%

10 years: 7%

Super senior additional rate: None

 

Shivalik Small Finance Bank

Highest interest: 8% (21 months 1 day to 22 months)

1 year: 6.50%

3 years: 7.25%

5 years: 6.75%

10 years: 6.75%

Super senior additional rate: None

 

Utkarsh Small Finance Bank

Highest interest: 8% (2 years to 3 years)

1 year: 6.50%

3 years: 8%

5 years: 7.50%

10 years: 7.25%

Super senior additional rate: None

 

Private sector banks

 

Bandhan Bank

Highest interest: 7.70% (2 years to less than 3 years)

1 year: 7.50%

3 years: 7.50%

5 years: 6.60%

10 years: 6.60%

Super senior additional rate: None

 

Jammu & Kashmir Bank

Highest interest: 7.75% (888 days)

1 year: 7.25%

3 years: 7.15%

5 years: 7.10%

10 years: 7.10%

Super senior additional rate: 0.25% on all tenures

 

RBL Bank

Highest interest: 7.70% (18 months to 3 years)

1 year: 7.50%

3 years: 7.70%

5 years: 7.20%

10 years: 7.20%

Super senior additional rate: 0.25% on all tenures

 

SBM Bank India

Highest interest: 7.80% (Above 18 months to less than 2 years 3 days)

1 year: 7.60%

3 years: 7.60%

5 years: 7.50%

10 years: 7.50%

Super senior additional rate: None

 

YES Bank

Highest interest: 7.75% (3 years to less than 5 years)

1 year: 7.15%

3 years: 7.75%

5 years: 7.50%

10 years: 7.50%

Super senior additional rate: None

 

Public sector banks

 

Bank of India

Highest interest: 7.20% (450 days Star Swarnim)

1 year: 6.75%

3 years: 7%

5 years: 6.75%

10 years: 6.75%

Super senior additional rate: 0.15% on tenures of 180 days to 10 years

 

Bank of Maharashtra

Highest interest: 7.15% (400 days)

1 year: 6.70%

3 years: 5.75%

5 years: 5.50%

10 years: 5.50%

Super senior additional rate: None

 

Indian Overseas Bank

Highest interest: 7.10% (444 days)

1 year: 7%

3 years: 6.60%

5 years: 6.60%

10 years: 6.60%

Super senior additional rate: 0.25% on all tenures

 

Punjab & Sind Bank

Highest interest: 7.10% (444 days)

1 year: 6.35%

3 years: 6.35%

5 years: 6.45%

10 years: 6.35%

Super senior additional rate: 0.15% on 375 days, 444 days, 777 days, 999 days and PSB Green Earth (22 months, 44 months, 66 months)

 

Union Bank of India

Highest interest: 7.10% (444 days)

1 year: 6.80%

3 years: 6.75%

5 years: 6.50%

10 years: 6.50%

Super senior additional rate: 0.25% on all tenures

 

Corporate FDs

 

Shriram Finance

Credit rating: ICRA AA+ (Stable); IND AA+/Stable by India Ratings and Research

Highest interest: 7.60% (3 years to 5 years)

1 year: 7%

3 years: 7.60%

5 years: 7.60%

Additional interest for senior citizens: 0.50%

 

Manipal Housing Finance Syndicate Ltd.

Credit rating: ACUITE A

Highest interest: 8.25% (1 year; 2 years; 3 years)

1 year: 8.25%

3 years: 8.25%

5 years: 7.75%

Additional interest for senior citizens: 0.25%

 

Muthoot Capital Services Ltd.

Credit rating: CRISIL A+/Stable

Highest interest: 8.95% (36 months)

1 year: 7.90%

3 years: 8.95%

5 years: 8.50%

Additional interest for senior citizens: 0.25%

 

Can Fin Homes Ltd.

Credit rating: ICRA AAA/Stable

Highest interest: 7.50% (3 years)

1 year: 6.50%

3 years: 7.50%

5 years: 6.75%

Additional interest for senior citizens: 0.25%–0.50%