Best fixed deposit rates in June 2026: Compare FD interest of top SFBs with private and public sector banks

Fixed deposit interest rates in India currently vary from 2.5% to 8.30% annually, depending on the bank and deposit tenure. While public and private sector banks continue to offer stable and predictable returns, small finance banks remain at the forefront with some of the most attractive FD rates in the market. Investors seeking better yields should compare offerings across institutions before locking in their funds.

Banks offering the highest FD interest rates

Among all lenders, small finance banks dominate the list of top-paying fixed deposits. Suryoday Small Finance Bank and Utkarsh Small Finance Bank are currently offering up to 8.10% on select tenures, making them among the most rewarding choices for depositors. Shivalik Small Finance Bank follows with a peak rate of 7.80%, while Slice Small Finance Bank and Jana Small Finance Bank offer rates of up to 7.75% and 7.77%, respectively.

Among larger private sector lenders, RBL Bank, IndusInd Bank, Bandhan Bank and Yes Bank offer peak FD rates of around 7%. Public sector banks continue to give relatively moderate returns, with the highest rates generally ranging between 6.25% and 6.60%.

Best tax-saver fixed deposits

Tax-saving FDs remain a preferred investment avenue for individuals looking to claim deductions of up to ₹1.5 lakh under Section 80C. These deposits come with a mandatory five-year lock-in period.

For regular investors, Suryoday Small Finance Bank offers 7.90%, while Jana Small Finance Bank provides 7.77%. IDFC First Bank and Utkarsh Small Finance Bank offer 7% returns on tax-saving deposits. Among private lenders, ICICI Bank offers 6.50%, HDFC Bank 6.40%, and Axis Bank 6.45%.

Senior citizens enjoy even higher rates on tax-saving deposits. Jana Small Finance Bank offers up to 8%, while Suryoday Small Finance Bank provides 8.10%. Several other lenders, including Yes Bank and IDFC First Bank, offer 7.50% to senior depositors..

Long-term FD rates

Long-duration deposits often provide higher returns and can help investors lock in attractive rates for an extended period.

For five-year deposits, Suryoday Small Finance Bank offers 7.90% for regular investors and 8.05% for senior citizens. Jana Small Finance Bank provides 7.77% and 8%, respectively. Among private banks, Yes Bank offers 6.75% for regular customers and 7.50% for senior citizens. HDFC Bank's corresponding rates stand at 6.40% and 6.90%.

For 10-year deposits, rates are generally lower than five-year offerings, though some banks continue to provide competitive returns for long-term savers.

Best public sector bank FD rates

Investors prioritising safety and government backing often prefer public sector banks. Although these institutions may not offer the highest yields, they remain popular due to their perceived stability and extensive branch networks.

Among public sector lenders, Indian Overseas Bank offers one of the highest one-year FD rates at 6.60%. State Bank of India and Punjab National Bank provide 6.30% on three-year deposits, while Bank of Baroda offers 6.30% on five-year deposits. Canara Bank maintains a relatively consistent 6.25% across major tenures.

Best private sector bank FD rates

Private sector banks continue to strike a balance between competitive returns and customer convenience.

RBL Bank currently offers 7.20% on three-year deposits, among the highest in the category. DCB Bank provides up to 7% on three- and five-year tenures, while Bandhan Bank offers 7% on one- and three-year deposits. Yes Bank and IndusInd Bank also feature prominently with rates close to 7%.

Meanwhile, leading private lenders such as HDFC Bank and ICICI Bank continue to offer returns in the 6.25% to 6.60% range across key maturities.

Small finance banks offer the best returns

Small finance banks remain the clear leaders when it comes to FD yields. Suryoday Small Finance Bank offers 8.10% on five-year deposits, while Jana Small Finance Bank offers 7.77%. Utkarsh Small Finance Bank provides up to 7.50% on three-year deposits.

These institutions are regulated by the RBI, and deposits are insured up to ₹5 lakh by DICGC, providing an additional layer of protection for investors.

Best FD rates for senior citizens

Senior citizens continue to enjoy preferential rates across banks, typically ranging between 0.25% and 0.75% above standard FD rates.

Shivalik Small Finance Bank currently tops the list with a peak rate of 8.30%. Suryoday Small Finance Bank and Utkarsh Small Finance Bank follow closely at 8.25%, while Jana Small Finance Bank offers up to 8%. Unity Small Finance Bank and Yes Bank provide rates of 7.75% on select tenures.

Among major lenders, ICICI Bank offers up to 7.10%, while HDFC Bank and Bank of Baroda offer up to 7% for senior citizens. These enhanced returns make fixed deposits an attractive option for retirees seeking steady and predictable income.