Fixed deposits are a safe and reliable investment tool for conservative investors to earn consistent long-term returns. Compared to simply parking your money in a savings account, a fixed deposit or FD allows you to allocate a lump sum amount to a financial institution for a fixed period of time and for a fixed rate of interest.
FDs also tend to have higher interest rates than savings accounts.
FDs are great financial tools for saving toward specific goals and can be automated so that deductions from your bank account ensure a neat, fixed amount is set aside each month. At the end of tenure, ranging from 7 days to up to 10 years, you can choose to have the principal and interest deposited into your account or renewed as another FD, if the rates are appealing to you.
However, it is advisable to research the available options and prevailing rates before you invest in an FD. The best way to do this is to compare the interest rates offered by different banks.
Overall, most banks offer higher interest rates on mid- to long-term deposits than on shorter-term deposits. Generally, the rates also taper off for deposits that run longer than 3 years. Additionally, almost all banks offer slightly higher interest rates to senior citizens (age 60+) than to regular investors.
Here's a look at the latest FD interest rates offered by the biggest banks (state and private) in India across tenors.
State Bank of India (SBI)
The highest FD rate at India's largest public sector lender is for a 2-year deposit tenure, with rates of 6.45% for regular public and 6.95% for senior citizens, according to data on the lender's official website at the time of writing.
Senior citizens also have a five-year tenure deposit and up to a 10-year tenure deposit at SBI, which gives them a higher 7.05% returns, compared to 6.05% for regular customers.
Kotak Mahindra Bank
Kotak Mahindra Bank offers an interest rate of 7.20% for senior citizens who invest in deposits ranging from 3 months to 1 year, and from 6 months to 1 year, and for less than 3 years.
For regular customers, the lender's highest interest rate is 6.70% for deposits ranging from one-year to three-month periods, and from one-year to six-month periods, and for less than three-year FDs, according to data on the official website at the time of writing.
HDFC Bank
HDFC Bank offers an interest rate of 6.95% to senior citizens who invest in FDs with tenures ranging from 18 months to 3 years.
For regular customers, India's largest private sector lender offers an interest rate of 6.50% on deposits of more than three years and less than five years (four years and seven months), according to data on its official website at the time of writing.
Yes Bank
The private lender offers an interest rate of 7.75% to senior citizens who invest in deposits ranging from 3 to 5 years, according to data on its official website at the time of writing. It is also the highest rate offered among the biggest banks listed in this article.
Further, for regular customers, Yes Bank's interest rate is 7% for deposits ranging from 1.5 years to FDs of more than 5 years.
ICICI Bank
India's second-largest private bank offers an interest rate of 7.10% for senior citizens who invest in deposits of three to five years, and the five-year tax saver FD, according to data on the official website at the time of writing.
For regular customers, ICICI Bank's highest interest rate offer is at 6.50% for deposits ranging from 3-10 years, and the five-year tax saver FD.
(All rates are as mentioned on the respective bank's official website, at time of writing on 6 April 2026)
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.