Fixed deposit rates in mid-Jan 2026 at 5-8%: Check best bank offers

Major lenders are holding firm at 6-6.5 % while small finance banks lead the market with returns of up to 8%

Fixed deposit (FD) rates are fragmented in mid-January 2026, with major banks hovering around 6–6.5 per cent while small finance banks aggressively offer returns exceeding 7 per cent on select tenures, according to data from Paisabazaar.com.

 

Suryoday Small Finance Bank offers 8 per cent on a five-year FD.

 

One-year FDs

 

Small finance banks: 6.25–7.25 per cent

 

Private and PSU banks: 6–6.5 per cent

 

Three-year FDs

 

Small finance banks: up to 7.5 per cent

 

Private banks: largely 6.4–7 per cent

 

Public sector banks: mostly around 6–6.3 per cent

 

Five-year FDs:

 

Small finance banks: up to 8 per cent

 

 

Large banks: typically 6–6.5 per cent

 

Private and PSU banks

 

Private banks such as HDFC Bank, ICICI Bank and Axis Bank offer FD rates below 6.5 per cent on most maturities.

 

Public-sector banks, including SBI and Bank of Baroda, show similar trends, with slightly higher rates only under special deposit schemes.

 

Why locking in now may help

 

According to Saurabh Jain, co-founder and chief executive officer of fintech Stable Money:

 

Small finance banks currently offer FD rates 1–1.5 percentage points higher than large banks.

 

These banks are regulated by the Reserve Bank of India.

 

Eligible deposits are insured up to Rs 5 lakh per depositor under the Deposit Insurance and Credit Guarantee Corporation.

 

Jain said that with multiple repo rate cuts already delivered and the possibility of further easing ahead, FD rates are likely to trend lower. Locking into current rates can help investors secure stable returns.

 

What depositors should check:

 

Deposit insurance limits

 

Lock-in period and liquidity needs

 

Spreading FDs across banks and maturities   

Bank Fixed Deposit Rates
Bank Name	Interest Rates (p.a.)
	Highest slab		1-year	3-year	5-year
	%	Tenure
SMALL FINANCE BANKS
AU Small Finance Bank	7.10	30 months 1 day to 36 months	6.35	7.10	6.75
Equitas Small Finance Bank	7.30	888 days	7.00	7.00	7.00
ESAF Small Finance Bank	7.60	444 days	4.75	6.00	5.75
Jana Small Finance Bank	7.77	Above 3 years to 5 years	7.00	7.50	7.77
Shivalik Small Finance Bank	7.50	21 months 1 day to 22 months	6.00	6.75	6.25
slice Small Finance Bank	7.75	18 months 1 day to 18 months 2 days	6.25	7.50	7.00
Suryoday Small Finance Bank	8.00	5 years	7.25	7.25	8.00
Ujjivan Small Finance Bank	7.45	2 years	7.25	7.20	7.20
Utkarsh Small Finance Bank	7.50	2 years to 3 years	6.00	7.50	7.00
PRIVATE SECTOR BANKS
Axis Bank	6.45	15 months to 10 years	6.25	6.45	6.45
Bandhan Bank	7.20	2 years to less than 3 years	7.00	7.00	5.85
City Union Bank	6.75	500 days	6.50	6.50	6.25
CSB Bank	7.00	13 months	5.00	5.75	5.75
DBS Bank	6.60	376 days to 600 days	6.30	6.40	6.25
DCB Bank	7.15	Above 60 months to 61 months	6.90	7.00	7.00
Federal Bank	6.75	36 months	6.25	6.75	6.40
HDFC Bank	6.45	18 months to 3 years	6.25	6.45	6.40
ICICI Bank	6.50	3 years 1 day to 10 years	6.25	6.45	6.50
IDFC FIRST Bank	7.00	450 days to 5 years	6.30	7.00	7.00
IndusInd Bank	7.00	1 year 6 months to less than 1 year 7 months	6.75	6.90	6.65
Jammu & Kashmir Bank	7.00	888 days	6.50	6.65	6.60
IDBI Bank	6.50	700 days - Utsav FD	6.20	6.35	6.25
Karnataka Bank	6.65	555 days	6.50	6.15	6.15
Kotak Mahindra Bank	6.70	15 months to less than 2 years	6.50	6.40	6.25
RBL Bank	7.20	18 months to 3 years	7.00	7.20	6.70
SBM Bank India	7.30	Above 18 months to less than 2 years 3 days	7.00	7.10	7.00
South Indian Bank	6.60	2 years	6.35	6.20	5.70
Tamilnad Mercantile Bank	7.10	456 days (TMB456)	6.80	6.60	6.60
YES Bank	7.00	18 months 1 day to less than 5 years	6.65	7.00	6.75
PUBLIC SECTOR BANKS
Bank of Baroda	6.45	444 days – BoB Square Drive Deposit Scheme	6.10	6.25	6.30
Bank of India	6.70	450 days - Star Swarnim	6.25	6.25	6.00
Bank of Maharashtra	6.65	400 days	6.20	5.25	5.00