The Reserve Bank of India (RBI) in its latest Monetary Policy Committee meeting decided to keep the key interest rate (repo) unchanged at 5.25% while maintaining a neutral monetary policy stance.
RBI Governor Sanjay Malhotra, announcing the sixth and final bi-monthly monetary policy for the current fiscal year on Friday, February 6, said that the RBI has decided to retain the short-term lending rate or repo rate at 5.25% with a neutral stance.
In 2025, the RBI cut the repo rate four times, resulting in a total reduction of 125 basis points (1.25%). Before the February meeting, the RBI cut the repo rate by 25 bps in December.
When the RBI cuts the repo rate, borrowing becomes cheaper for banks, borrowing becomes cheaper for banks, which in turn reduces borrowing costs for customers. However, with a repo rate cut, banks cut their FD rates as well, and vice versa.
In the February MPC meeting, the RBI kept the rate unchanged, which means this may be a good time for individuals to book FDs at current rates.
Moreover, many should also consider FD laddering, a strategy where the investor splits a lump sum into multiple fixed deposits with different maturity dates to maximise returns. Along with higher returns, investors also get more liquidity, as a portion of funds becomes available at regular intervals.
Financial experts suggest that after the RBI kept the repo rate unchanged, this may be the right time to plan a balanced ladder of 1-year, 2-year and 3-year FDs. This strategy will allow them to benefit from any potential rate hikes or market changes.
State Bank of India
The State Bank of India revised its FD rates on December 12, 2025 after the RBI's MPC meeting decision. The bank currently offers rates ranging from 3.05% to 6.45% for normal citizens and from 3.55% to 7.05% for senior citizens.
Here are the rates offered by the bank:
| Tenor | Revised Rate (Public) | Revised Rate (Senior Citizen) |
|---|---|---|
| 7 days to 45 days | 3.05% | 3.55% |
| 46 days to 179 days | 4.90% | 5.40% |
| 180 days to 210 days | 5.65% | 6.15% |
| 211 days to less than 1 year | 5.90% | 6.40% |
| 1 year to less than 2 years | 6.25% | 6.75% |
| 2 years to less than 3 years | 6.40% | 6.90% |
| 3 years to less than 5 years | 6.30% | 6.80% |
| 5 years to up to 10 years | 6.05% | 7.05%* |
HDFC Bank
The HDFC Bank revised its FD rates on December 17, 2025. The bank currently offers interest rates between 2.75% and 6.45% for the general public and between 3.25% and 6.95% for senior citizens.
| Tenor Bucket | Rate (Public) | Rate (Senior Citizen) |
|---|---|---|
| 7-14 days | 2.75% | 3.25% |
| 15-29 days | 2.75% | 3.25% |
| 30-45 days | 3.25% | 3.75% |
| 46-60 days | 4.25% | 4.75% |
| 61-89 days | 4.25% | 4.75% |
| 90 days to ≤ 6 months | 4.25% | 4.75% |
| 6 months 1 day to ≤ 9 months | 5.50% | 6.00% |
| 9 months 1 day to < 1 year | 5.75% | 6.25% |
| 1 year to < 15 months | 6.25% | 6.75% |
| 15 months to < 18 months | 6.35% | 6.85% |
| 18 months to < 21 months | 6.45% | 6.95% |
| 21 months to 2 years | 6.45% | 6.95% |
| 2 years 1 day to < 2 years 11 months | 6.45% | 6.95% |
| 2 years 11 months (35 months) | 6.45% | 6.95% |
| 2 years 11 months 1 day to ≤ 3 years | 6.45% | 6.95% |
| 3 years 1 day to < 4 years 7 months | 6.40% | 6.90% |
| 4 years 7 months (55 months) | 6.40% | 6.90% |
| 4 years 7 months 1 day to ≤ 5 years | 6.40% | 6.90% |
| 5 years 1 day to 10 years | 6.15% | 6.65% |
YES Bank
YES Bank offers FD rates ranging from 3.25% to 7% for the general public and rates from 3.75% to 7.75% for senior citizens.
| Period | Regular Rate | Senior Citizen Rate |
|---|---|---|
| 7 days to 14 days | 3.25% | 3.75% |
| 15 days to 45 days | 3.50% | 4.00% |
| 46 days to 90 days | 4.50% | 5.00% |
| 91 days to 120 days | 4.75% | 5.25% |
| 121 days to 180 days | 4.75% | 5.25% |
| 181 days to 271 days | 6.00% | 6.50% |
| 272 days to 335 days | 6.25% | 6.75% |
| 336 days to < 12 months | 6.50% | 7.00% |
| 12 months | 6.65% | 7.15% |
| 12 months 1 day to < 18 months | 6.75% | 7.25% |
| 18 months | 6.75% | 7.25% |
| 18 months 1 day to < 24 months | 7.00% | 7.50% |
| 24 months to < 36 months | 7.00% | 7.50% |
| 36 months to < 60 months | 7.00% | 7.75% |
| 60 months | 6.75% | 7.50% |
| 60 months 1 day to ≤ 120 months | 6.75% | 7.50% |
Highest FD rates offered by banks in February 2026
Here are the top 10 banks that offer the highest FD interest rates in India:
| Bank | Highest FD Rate (Public) |
|---|---|
| Suryoday Small Finance Bank | 7.90% |
| Jana Small Finance Bank | 7.77% |
| ESAF Small Finance Bank | 7.60% |
| Utkarsh Small Finance Bank | 7.50% |
| Shivalik Small Finance Bank | 7.50% |
| Ujjivan Small Finance Bank | 7.45% |
| Equitas Small Finance Bank | 7.20% |
| Bandhan Bank | 7.20% |
| RBL Bank | 7.20% |
| DCB Bank | 7.15% |
| Capital Small Finance Bank | 7.15% |
These banks offer an additional 0.20% to 0.75% to senior citizens on various tenures. Most banks offer an extra 0.50% to senior citizens.
Small finance banks (SFBs) generally offer higher interest rates than others due to their unique business structure. Deposits with SFBs are also secured under the RBI's Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, but only up to ₹5 lakh per depositor, including the principal and interest. Investors should compare banks and their interest rates before booking an FD.
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