A safe investment instrument, bank fixed deposits are a reliable choice for senior citizens and conservative investors looking to earn consistent returns.
It is also largely convenient, allowing for customers to automate deductions from your bank account to save towards specific goals.
When compared to simply storing your money in a savings account, FDs allow you to deposit a sum with a bank or financial institution for a fixed tenure and at a relatively higher interest rate. The terms range from 7 days to up to 10 years, and you can choose to have the principal and interest deposited into your account or rolled into a fresh FD.
Why choose to invest in fixed deposit?
Overall, it is best for investors to compare all available options across different banks and check the prevailing interest rates and benefits before investing in an FD.
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)
India's largest public sector lender, SBI offers its highest FD interest rate for the 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.
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.
Kotak Mahindra Bank
Kotak Mahindra Bank offers an interest rate of 7.30% for senior citizens who invest in deposits for two years to less than three years. For regular customers, the lender's highest interest rate is 6.80% for deposits ranging from two years to less than three years, according to data on the official website at the time of writing.
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.
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.
(All rates are as mentioned on the respective bank's official website, at time of writing on 4 May 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.