Planning to invest in a Fixed Deposit (FD)? Then it’s a good time to compare interest rates before making a decision.
Many banks are offering attractive returns on 5-year FDs, with some Small Finance Banks providing interest rates of up to 8%.
Senior citizens can earn even higher returns through special FD rates offered by most banks.
Small Finance Banks Lead with the Highest FD Rates
Small Finance Banks continue to offer some of the best FD interest rates in July 2026.
Here are some of the top options:
Suryoday Small Finance Bank: 8.00% for general customers and 8.50% for senior citizens.
Equitas Small Finance Bank: 7.00% for general customers and 7.50% for senior citizens.
AU Small Finance Bank: 6.75% for general customers and 7.25% for senior citizens.
Jana Small Finance Bank: 6.50% for general customers and 7.00% for senior citizens.
Ujjivan Small Finance Bank: 6.50% for general customers and 7.00% for senior citizens.
These banks are offering some of the highest returns available on 5-year fixed deposits.
Private Banks Also Offer Attractive Returns
Several private sector banks are offering competitive FD interest rates.
Some of the leading options include:
Yes Bank: 6.75% for general customers and 7.50% for senior citizens.
RBL Bank: 6.70% for general customers and 7.20% for senior citizens.
Axis Bank: 6.60% for general customers and 7.20% for senior citizens.
ICICI Bank: 6.50% for general customers and 7.00% for senior citizens.
HDFC Bank: 6.15% for general customers and 6.65% for senior citizens.
In most cases, senior citizens receive an additional 0.50% or more over the regular FD rate.
Interest Rates Offered by Government Banks
Government banks generally offer lower FD interest rates than private and small finance banks, but they remain a preferred choice for many investors due to their strong reputation.
Some of the current 5-year FD rates are:
State Bank of India (SBI): 6.05% for general customers and 7.05% for senior citizens.
Punjab National Bank (PNB): 6.00% for general customers.
Bank of Baroda (BoB): 6.00% for general customers.
Indian Bank: 6.00% for general customers.
Senior citizen rates may vary depending on the bank’s policy.
Which FD Should You Choose?
If your goal is to earn the highest possible return, Small Finance Banks are currently offering the most attractive 5-year FD interest rates.
However, before investing, compare interest rates, check the bank’s terms and conditions, and choose an FD that matches your financial goals, risk comfort, and liquidity needs.
