Fixed Deposits (FDs) have always been the backbone of safe investments in India. With assured returns, flexible tenures, and zero market risk, FDs continue to attract crores of depositors. Recently, many banks have revised their FD interest rates, and some are offering returns as high as 9%, making them more attractive than ever. Even big players like SBI are part of this latest update, though smaller private and cooperative banks are offering the highest returns.
Why FD Rates Are Rising
The rise in FD interest rates is linked to the Reserve Bank of India’s (RBI) monetary policy moves. To control inflation and maintain liquidity, banks are offering higher deposit rates to attract more funds. This comes as good news for both regular investors and especially senior citizens, who enjoy additional benefits on FD returns.
FD Interest Rates in Top 10 Banks
Here’s a look at the latest FD rates being offered by some of the leading banks, ranging from SBI to smaller private and cooperative banks.
| Bank Name | General Public Interest Rate | Senior Citizen Rate | Highest Tenure for Rate |
|---|---|---|---|
| State Bank of India (SBI) | 7.10% | 7.60% | Up to 10 years |
| HDFC Bank | 7.25% | 7.75% | 5–10 years |
| ICICI Bank | 7.25% | 7.75% | 5 years |
| Axis Bank | 7.30% | 7.80% | 5 years |
| Punjab National Bank (PNB) | 7.25% | 7.75% | 5 years |
| Canara Bank | 7.15% | 7.65% | 5 years |
| RBL Bank | 8.00% | 8.50% | 2–3 years |
| Yes Bank | 8.25% | 8.75% | 2–3 years |
| Bandhan Bank | 8.50% | 9.00% | 2–3 years |
| Jana Small Finance Bank | 8.75% | 9.00% | 2–3 years |
Key Observations from the Rates
- SBI and other PSU banks are stable choices with moderate but secure rates.
- Private sector banks like HDFC, ICICI, and Axis are offering slightly higher returns.
- Small finance banks and newer private banks are leading with rates up to 9%, which is a big attraction for risk-tolerant investors.
- Senior citizens benefit the most, as almost every bank provides an extra 0.50% interest.
Is It Safe to Choose Smaller Banks for Higher Returns?
While the 9% interest from smaller banks looks very attractive, investors must also weigh the risk and trust factor. PSU banks like SBI and PNB provide the highest level of safety, whereas private and small finance banks, though offering higher returns, may involve slightly more risk. Deposits up to ₹5 lakh are insured by DICGC, ensuring basic safety even in case of financial distress at the bank.
Final Verdict: Which FD Should You Choose?
If you want 100% safety, go with large PSU banks like SBI, PNB, or Canara Bank. If you are willing to take a calculated risk for higher returns, banks like Bandhan, RBL, or Jana Small Finance Bank can be considered for part of your investment portfolio. The new FD rates are a golden opportunity for investors to lock in funds and enjoy handsome returns at a time when interest cycles may not remain this high for long.
