Best FD Rates in India — April 2026 Comparison Across All Major Banks
TL;DR
- RBI kept the repo rate at 5.25% in April 2026 — FD rates are unlikely to rise significantly from current levels in the near term
- Large public sector banks (SBI, PNB, Canara, BOB) offer 6.05% to 6.50% for general depositors on standard tenures
- Major private banks (HDFC, ICICI, Axis, Kotak) are clustered between 6.25% and 6.70% for most tenures
- The highest rates in April 2026 come from small finance banks (up to 7.50%) and special-tenure deposits from mid-sized private banks
- IDFC FIRST Bank is offering 7.40% on its 390-day deposit — one of the strongest rates among established private banks
- DICGC insures deposits up to ₹5 lakh per depositor per bank including interest — rate-chasing beyond this limit comes with uninsured risk
Introduction
Every time the RBI announces a rate decision, the first question millions of Indian depositors ask is the same: what does this mean for my FD rates?
On 8 April 2026, the RBI's Monetary Policy Committee held the policy repo rate at 5.25%. For existing FD holders, this means your current rates remain intact. For those looking to open a new FD or renew an existing one, the picture is nuanced — different bank categories are offering very different rates, and the "best rate" often depends on which tenure you choose and whether you are comfortable with smaller, less-familiar banks.
This comparison pulls from official bank websites and verified market data as of April 8-10, 2026. Rates change frequently, so always verify with your bank before booking.
The April 2026 Rate Backdrop
The RBI's decision to hold at 5.25% is the key context for this comparison. When the RBI cuts rates, banks eventually follow by lowering FD rates. When it holds, rates stay roughly stable. When it raises, FD rates typically increase.
At 5.25%, we are in a rate environment where the RBI has already delivered some cuts from the post-COVID highs, but is not yet in aggressive easing mode — partly because oil-driven inflation from the Iran-US conflict has complicated the picture. The practical implication for depositors is this: rates are unlikely to jump higher from here, but they are also not going to fall sharply in the next quarter. If you have been waiting to lock in a good rate, the current window is reasonable.
Public Sector Banks: Steady but Conservative
India's large public sector banks — SBI, PNB, Bank of Baroda, Canara, Indian Overseas — offer the security of government backing but typically the most conservative FD rates in any comparison.
State Bank of India is the reference point for most depositors. SBI's official rates as of April 2026:
| Tenure | General Depositors | Senior Citizens |
|---|---|---|
| 1 year | ~6.20% | ~6.70% |
| 2 years to less than 3 years | 6.45% | 6.95% |
| 3 years to less than 5 years | 6.30% | 6.80% |
| 5 years to 10 years | 6.05% | 7.05% (SBI We-care) |
The senior citizen premium at SBI is 0.50% across most tenures, with a special We-care scheme pushing the 5-year rate to 7.05% for seniors.
Among public sector peers, the standout rates from ET's April 8 comparison are:
- Indian Overseas Bank: 6.50% on 1-year deposits — the highest 1-year rate among PSU banks
- Punjab National Bank: 6.30% on 3-year deposits, and a special 444-day scheme at 6.60% for general depositors and 7.10% for seniors
- Bank of Baroda: 6.30% for 5-year deposits, and a special "bob Square Drive" 444-day scheme at 6.45% for general depositors and 6.95% for seniors
The pattern with PSU banks is clear: standard tenure rates cluster between 6.05% and 6.50%, but several banks offer higher rates on specific special tenures — typically 300-day, 444-day, or similar non-round durations. These are worth checking if your investment timeline is flexible.
Private Banks: Better Rates, but Shop Around
The major private banks offer meaningfully better rates than their PSU counterparts on most tenures, though the gap narrows at the top end.
HDFC Bank (April 2026 official rates, deposits below ₹3 crore):
| Tenure | General Depositors | Senior Citizens |
|---|---|---|
| 1 year to less than 15 months | 6.25% | 6.75% |
| 15 months to less than 18 months | 6.35% | 6.85% |
| 18 months to 2 years | 6.45% | 6.95% |
ICICI Bank (effective 10 April 2026):
- General depositors: up to 6.50% (best rate on 3 years 1 day to 10 years)
- Senior citizens: up to 7.10% (best rate on 3 years 1 day to 5 years)
Axis Bank (official April 2026):
- 1 year to 1 year 10 days: 6.25% general, 6.75% senior
- 18 months to less than 2 years: 6.45% general, 6.95% senior
Kotak Mahindra Bank: up to 6.70% for general depositors, 7.20% for seniors
YES Bank: 6.65% on 12-month deposits, 6.75% on 12 months 1 day to less than 18 months
Among the major private banks, Kotak at 6.70% and ICICI at 6.50% are at the higher end for general depositors on standard tenures. HDFC and Axis are comparable, sitting at 6.25% to 6.45% depending on the tenure bucket.
Where the Highest Private Bank Rates Are: Special Tenures
The most competitive rates from mid-sized private banks in April 2026 are coming from non-standard tenures — 390 days, 444 days, and similar. These are designed to stand out in comparison tables without committing to a higher standard-tenure rate.
IDFC FIRST Bank (effective 19 March 2026) offers some of the strongest rates among established private banks:
| Tenure | General Depositors |
|---|---|
| 390 days | 7.40% |
| 391 days to 2 years | 7.25% |
| 2 years 1 day to 5 years | 7.00% |
| 5 years 1 day to 10 years | 6.00% |
The 390-day rate of 7.40% is notable. For a depositor with ₹5 lakh to invest for approximately 13 months, this is significantly better than the 6.25% offered by HDFC or Axis for a comparable 1-year tenure.
RBL Bank: 7.00% on 1-year deposits, 7.20% on 3-year deposits Bandhan Bank: 7.00% on 1-year deposits, 7.25% on 3-year deposits DCB Bank: 6.90% on 1-year deposits, 7.00% on 3-year deposits, 7.15% on 5-year deposits
For depositors comfortable with mid-sized private banks — which are regulated by RBI and DICGC-insured to ₹5 lakh — these rates offer a meaningful premium over the large-bank alternatives.
Small Finance Banks: Highest Rates, Higher Considerations
Small finance banks consistently offer the highest FD rates in any comparison. As of April 2026:
| Bank | Best 1-Year Rate | Best 3-Year Rate |
|---|---|---|
| Suryoday SFB | 7.25% | 7.25% |
| Ujjivan SFB | 7.25% | 7.20% |
| Jana SFB | 7.00% | 7.50% |
| Utkarsh SFB | — | 7.50% |
| slice SFB | 6.25% | 7.50% |
ET's senior citizen comparison from April 4, 2026 found 3-year rates going up to 8% across the small finance bank category for senior depositors.
Small finance banks are licensed by RBI, regulated like commercial banks, and covered by DICGC insurance. The reason they offer higher rates is structural — they compete for deposits against larger banks by offering a premium, and they often lend to higher-risk borrower segments that justify higher interest costs.
For deposits within the ₹5 lakh DICGC insurance limit, small finance banks are a legitimate option for depositors willing to accept a less familiar brand name in exchange for a meaningfully better rate. Beyond the insurance limit, the risk calculus changes.
Senior Citizens: The Better Deal
Senior citizens (typically 60 years and above) receive a uniform 0.50% additional interest across most banks, and some banks have super-senior citizen categories (75+) with higher premiums.
In April 2026:
- Indian Bank IND SECURE (444 days): 7.35% for super-senior citizens, 7.10% for regular seniors
- PNB 444-day: 7.10% for senior citizens
- ICICI Bank (3+ year deposits): 7.10% for seniors
- Kotak Mahindra Bank: up to 7.20% for seniors
- SBI (5-year, We-care scheme): 7.05% for seniors
For a retired person with a corpus to deploy, the combination of a 0.50% senior premium and a special-tenure scheme can add up meaningfully. On a ₹10 lakh deposit at 7.10% versus 6.60%, the additional interest over 3 years is approximately ₹17,000 — not insignificant.
What to Watch Beyond the Headline Rate
Premature withdrawal penalties. ICICI Bank's terms state no interest is paid if a domestic FD is broken within 7 days. Most banks charge 0.5% to 1% as a penalty on the applicable rate for premature closure. If you think you might need the money before maturity, factor this in — a 7.40% FD broken early might net you less than a 6.50% FD with more flexible terms.
Callable versus non-callable deposits. Some banks offer higher rates on non-callable deposits — those that cannot be broken before maturity. PNB's "PNB Uttam" scheme for deposits above ₹1 crore, for example, offers slightly higher rates than standard callable deposits but restricts premature withdrawal. Read the fine print.
Differential rates for larger deposits. RBI permits banks to offer different rates on single deposits of ₹15 lakh and above. If you have a larger sum to invest, it is worth calling your bank relationship manager rather than going by the headline retail card rate — you may get a negotiated rate.
DICGC insurance limits. This is worth repeating clearly: DICGC insurance covers ₹5 lakh per depositor per bank, including both principal and accrued interest, with deposits across all branches of the same bank aggregated. If you have ₹20 lakh to invest, splitting it across four different banks — not four branches of the same bank — keeps the entire amount within the insured limit. Rate-chasing at a single unfamiliar bank with an uninsured amount is a different kind of decision.
How to Use This Comparison
Start with the tenure that works for your goal, not the highest rate.
If you need the money in 12-15 months: IDFC FIRST's 390-day rate at 7.40%, or RBL/Bandhan at 7.00%, offer significantly better returns than the 6.20-6.25% at SBI or HDFC.
If you are investing for 3 years: Small finance banks at 7.25-7.50% or private banks like Bandhan and RBL at 7.20-7.25% beat PSU rates by 75-100 basis points. On ₹5 lakh over 3 years, that difference is approximately ₹12,000-15,000 in additional interest.
If you are investing for 5 years (including the tax-saving 5-year FD under 80C): Bank of Baroda and DCB offer 6.30% and 7.15% respectively — a wide spread for the same tenure.
Use the FD Calculator to see the exact maturity amount across different rates and tenures, and the Wealth Calculator to compare whether an FD deployment makes sense relative to other fixed-income options in your overall portfolio.
Frequently Asked Questions
What is the highest FD rate available in April 2026?
Among standard bank categories, small finance banks are offering up to 7.50% on 3-year deposits (Jana SFB, Utkarsh SFB, slice SFB). Among established private banks, IDFC FIRST Bank is offering 7.40% on its 390-day special tenure deposit. For senior citizens, rates go above 8% in some small finance bank comparisons.
Are the large private banks (HDFC, ICICI, Axis) offering competitive rates?
They are competitive within their category but not market-leading. HDFC, ICICI, and Axis are mostly in the 6.25% to 6.50% range for standard tenures and general depositors. Their appeal is brand trust, service quality, and liquidity — not rate maximisation. For depositors focused purely on return and comfortable with smaller banks, there are meaningfully better options available.
How much of my FD is protected if the bank fails?
DICGC (Deposit Insurance and Credit Guarantee Corporation) insures up to ₹5 lakh per depositor per bank, including both principal and accrued interest. If you have ₹8 lakh in FDs at a single bank and the bank fails, only ₹5 lakh is guaranteed. Spreading deposits across multiple banks — not multiple branches of the same bank — is the way to keep larger amounts within the insured limit.