8% and above FD rates still offered by 11 banks - Where you can invest

3-year horizon: NorthEast SFB's 8.75% is the most lucrative option across the market

Small Finance Banks continue to offer the highest FD interest rates in the market, especially for mid- to long-term tenures. They cater largely to retail and underserved segments, and in return, offer better rates to attract deposits. According to data compiled from Paisabazaar.com, 11 banks across India are now offering FD interest rates of 8% or more on 1-year, 3-year, and 5-year tenures.

 

1-Year FDs: Short-Term, High Gains

6 banks currently offer 8% or more on 1-year fixed deposits — a remarkable figure for a short-term investment.

 

 Banks offering ≥ 8% for 1 year:

Bandhan Bank

Equitas Small Finance Bank

 

Ujjivan Small Finance Bank

Utkarsh Small Finance Bank

Suryoday Small Finance Bank

Jana Small Finance Bank  

 

Standout: Bandhan Bank is the top private sector player here, offering 8.05%, while small finance banks dominate the list with comparable or higher rates. 

 

3-Year FDs: The Sweet Spot

This is where investors are seeing the biggest bump in returns. 9 banks offer 8% or more on 3-year FDs — the most of any tenure.

 

 Banks offering ≥ 8% for 3 years:

NorthEast Small Finance Bank – 8.75% (Highest)

Suryoday Small Finance Bank

Jana Small Finance Bank

Unity Small Finance Bank

Utkarsh Small Finance Bank

Equitas Small Finance Bank

SBM Bank India

DCB Bank

Bandhan Bank

 

 Standout: NorthEast Small Finance Bank leads the market with an unmatched 8.75%. 

 

 5-Year FDs: High Long-Term Returns

Only 4 banks are offering 8% or more for 5-year tenures — all of them either small finance or niche private banks.

 Banks offering ≥ 8% for 5 years:

Suryoday Small Finance Bank – 8.60%

Jana Small Finance Bank

Unity Small Finance Bank

SBM Bank India

Standout: Suryoday SFB tops long-term returns with 8.60%, making it the best bet for long-term savers.

 

Which banks are offering the highest FD rates?   Top FD Rates in Small Finance Banks 

NorthEast SFB leads with the highest FD rate at 9.00%, while Suryoday SFB offers a strong combination of long-tenure returns at 8.60% for 5 years.

 

Private banks offer a mix of competitive interest rates and strong brand assurance. While they don't match small finance banks in raw returns, they appeal to risk-averse depositors seeking a balance.  Private Banks 

 

Bandhan Bank tops the 1-year FD race at 8.05%, and SBM Bank is notable for a 7.75% return for 5 years, rare among private banks.   Public Sector Banks 

 

Public sector banks offer safety, with returns slightly lower than private counterparts. Still, some have launched special schemes with better-than-average returns. Central Bank of India is the clear leader among PSBs with 7.50% for a long tenure. Canara Bank and BoM offer solid returns for shorter durations. 

 

Foreign banks generally have conservative FD rates, but a few stand out with attractive offers for shorter tenures.Deutsche Bank is a surprising contender with 7.75% for shorter tenures, making it the best among foreign players.  Top FD Rates in Foreign Banks 

 

Where should you invest?

Highest returns: Small finance banks like NorthEast SFB, Suryoday SFB, and Jana SFB are offering exceptional rates for informed investors willing to explore beyond traditional banks.

 

Balanced choice: Private banks like Bandhan and DCB offer a good blend of returns and safety.

 

Safe and steady: Public sector banks provide assurance with moderate rates, ideal for conservative investors.

 

Diversify with foreign banks: Short-term deposits in Deutsche or Standard Chartered offer decent yields with global credibility.