Which bank offers the highest FD interest rate in India? (July 2026)
Yes Bank leads with 7.75% p.a. for 1-year and 2-year fixed deposits, with IDFC First Bank at 7.50% for the same tenures. For the 3-year bracket, Post Office NSC edges ahead at 7.70%, making it the single highest rate for that tenure across any comparable product available to retail investors in India.
For senior citizens, the effective rate is higher at each bank. Yes Bank pays 8.25% to senior citizens on 1-year deposits. IndusInd Bank pays 7.75% and IDFC First Bank 8.00%. PNB, which offers only 6.80% to general customers for 1-year FDs, jumps to 7.60% for seniors, since PNB provides the highest senior citizen bonus of 0.80% compared to the standard 0.50% at other banks.
Small finance banks (not included in this comparison) offer even higher FD rates of 8-9%, but they carry higher risk and are covered under the same Rs 5 lakh DICGC insurance limit. For deposits within that limit, they are worth considering as a higher-yield alternative.
FD interest rates comparison: SBI, HDFC, ICICI, Axis, Kotak (2026)
The table below shows current FD rates from major Indian banks across four standard tenures. These reflect rates as of July 2026, following the RBI repo rate cycle that brought the policy rate to 5.25% through cumulative 125 bps cuts.
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Sr Citizen |
|---|---|---|---|---|---|
| Yes Bank | 7.75% | 7.75% | 7.25% | 7.25% | +0.50% |
| IDFC First Bank | 7.50% | 7.50% | 7.50% | 7.00% | +0.50% |
| IndusInd Bank | 7.25% | 7.25% | 7.25% | 7.25% | +0.50% |
| Post Office (NSC) | 7.10% | N/A | 7.70% | N/A | Same |
| Axis Bank | 7.10% | 7.15% | 7.10% | 7.00% | +0.50% |
| Kotak Mahindra | 7.10% | 7.10% | 7.10% | 6.20% | +0.50% |
| HDFC Bank | 7.00% | 7.00% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.90% | 7.00% | 7.00% | 7.00% | +0.50% |
| Bank of Baroda | 6.85% | 7.00% | 7.00% | 6.50% | +0.50% |
| SBI | 6.80% | 7.00% | 6.75% | 6.50% | +0.50% |
| PNB | 6.80% | 6.80% | 6.80% | 6.50% | +0.80% |
| Canara Bank | 6.70% | 6.80% | 6.70% | 6.70% | +0.50% |
The rate gap between the best and worst bank for 1-year FDs is 1.05 percentage points (7.75% vs 6.70%). On a Rs 5 lakh deposit, that translates to approximately Rs 5,343 in additional interest earned per year. Over 3 years with compounding, the gap widens further.
FD Maturity Calculator
See exact maturity amounts for all 12 banks using your deposit size and tenure.
Savings account interest rates: which bank pays the most?
Yes Bank and IDFC First Bank both offer 7.00% savings account interest rate, by far the highest among major banks, on balances up to Rs 1 crore. On a Rs 2 lakh balance, that earns Rs 14,000 annually, compared to Rs 5,400 at SBI (2.70%). The difference of Rs 8,600 per year is significant for anyone maintaining large idle balances.
Kotak Mahindra offers 4.00% for balances above Rs 1 lakh (3.50% below), making it the best option among traditional large private banks. IndusInd Bank and Post Office Savings account also offer 4.00% flat. HDFC and Axis Bank offer 3.50% for balances above Rs 50 lakh, with 3.00% below that.
Savings account interest is calculated daily on the end-of-day balance and credited quarterly per RBI guidelines. The higher rates at Yes Bank and IDFC First Bank are genuine competitive offerings, not introductory rates. Both are regularly renewed and visible on their official rate cards per RBI guidelines on interest rate deregulation.
Home loan interest rates across banks (post-RBI rate cuts)
Bank of Baroda currently offers the lowest home loan rate at 7.15% p.a., followed by SBI at 7.25% (EBLR-linked). The RBI cut the repo rate by a total of 125 basis points from 6.50% in early 2025 to 5.25% by July 2026, and home loan rates have declined by approximately 100-125 bps in the same period. On a Rs 75 lakh loan for 20 years, the difference between 7.15% (Bank of Baroda) and 7.90% (ICICI/Kotak) adds up to approximately Rs 3.5 lakh in extra interest paid.
| Bank | Rate (p.a.) | EMI on Rs 75L (20Y) |
|---|---|---|
| Bank of Baroda | 7.15% | Rs 58,825 |
| SBI (EBLR-linked) | 7.25% | Rs 59,278 |
| Bank of India | 7.30% | Rs 59,506 |
| HDFC Bank | 7.35% | Rs 59,733 |
| PNB | 7.40% | Rs 59,962 |
| Canara Bank | 7.40% | Rs 59,962 |
| LIC Housing Finance | 7.50% | Rs 60,419 |
| Axis Bank | 7.75% | Rs 61,571 |
| ICICI Bank | 7.90% | Rs 62,267 |
| Kotak Mahindra | 7.90% | Rs 62,267 |
All rates shown are floating, linked to external benchmarks. The Home Loan EMI Calculator lets you run a full amortization schedule for any of these rates.
Personal loan interest rates: cheapest banks in India
SBI offers the lowest personal loan rate among major banks at 10.30% p.a. PNB follows at 10.40%, and both Axis Bank and IndusInd Bank offer 10.49%. HDFC Bank stands at 10.50%. Yes Bank is the most expensive at 11.99%, a premium of 169 basis points over SBI. On a Rs 5 lakh loan for 3 years, this rate gap translates to approximately Rs 13,400 in additional total interest.
Personal loan rates are significantly higher than home loan rates because they are unsecured. Banks charge a premium for the absence of collateral. CIBIL score is the single biggest determinant of the rate a borrower is offered: a score of 750 and above typically qualifies for the published base rate, while scores between 700-749 carry a 0.25-0.50% surcharge.
Personal Loan EMI Calculator
Calculate EMI and total interest for any personal loan amount and tenure.
Gold loan interest rates: banks vs NBFCs
Banks charge 8.75-9.50% on gold loans, while NBFCs like Muthoot Finance and Manappuram charge 12.00%, a premium of 250-325 basis points. The NBFC premium is explained by faster processing (disbursals in under 30 minutes), higher loan-to-value ratios (up to 75% of gold value versus 70% at most banks), and more flexible end-use terms. SBI, Canara Bank, and PNB all offer 8.75%, making them the cheapest option for borrowers who can wait the standard bank processing time.
Gold loans use simple interest calculation for the interest component. The pledge period is typically 3-12 months at most banks, with extensions available. RBI mandates that LTV for gold loans by banks must not exceed 75% of the gold value at any point, per RBI Master Direction on Gold Loans.
Senior citizen FD rates: 0.50-0.80% extra at every bank
Every major bank mandatorily offers a senior citizen premium on FD rates, ranging from 0.50% (most banks) to 0.80% (PNB). Senior citizens are defined as customers who have completed 60 years of age. The premium is applied automatically on presentation of age proof and applies to deposits of all tenures. Post Office NSC does not carry a senior citizen premium.
| Bank | General Rate (1Y) | Sr Citizen Bonus | Sr Citizen Rate |
|---|---|---|---|
| Yes Bank | 7.75% | +0.50% | 8.25% |
| IDFC First Bank | 7.50% | +0.50% | 8.00% |
| IndusInd Bank | 7.25% | +0.50% | 7.75% |
| Post Office (NSC) | 7.10% | None | 7.10% |
| Axis Bank | 7.10% | +0.50% | 7.60% |
| Kotak Mahindra | 7.10% | +0.50% | 7.60% |
| HDFC Bank | 7.00% | +0.50% | 7.50% |
| ICICI Bank | 6.90% | +0.50% | 7.40% |
| Bank of Baroda | 6.85% | +0.50% | 7.35% |
| SBI | 6.80% | +0.50% | 7.30% |
| PNB | 6.80% | +0.80% | 7.60% |
| Canara Bank | 6.70% | +0.50% | 7.20% |
Post office vs bank FD: the key differences
Post Office NSC at 7.70% for 3 years beats every major bank for that specific tenure. The NSC also qualifies for Section 80C deduction up to Rs 1.5 lakh per year under the Income Tax Act, giving investors an immediate tax saving that bank FDs (except the 5-year tax-saving FD) do not provide. The accrued interest on NSC is also eligible for 80C every year, effectively compounding the tax benefit.
| Feature | Post Office NSC | Bank FD |
|---|---|---|
| Highest rate (3Y) | 7.70% | 7.50% (IDFC First) |
| Section 80C eligible | Yes (up to Rs 1.5L) | Only 5-year tax-saving FD |
| Government guarantee | Sovereign guarantee | Rs 5L DICGC insurance |
| Premature withdrawal | Not allowed (except death) | Allowed with penalty |
| Loan against investment | Allowed (pledge) | Allowed (overdraft facility) |
| Senior citizen premium | None | +0.50 to +0.80% |
| TDS on interest | No TDS (report as income) | 10% TDS above Rs 40,000 |
How the RBI repo rate affects bank interest rates
The RBI repo rate is the rate at which banks borrow from the Reserve Bank of India. When RBI cuts the repo rate, banks can borrow more cheaply, which reduces their marginal cost of funds. This flows through to lower lending rates (home loans, personal loans) and, with a lag, to lower deposit rates as banks reduce the cost they need to pay for funds. RBI cut rates by a cumulative 125 bps from 6.50% in early 2025 to 5.25% by July 2026, per RBI Monetary Policy decisions.
Home loan borrowers with floating-rate loans (all new loans since October 2019 are mandated to be linked to external benchmarks like the repo rate) saw their effective rates decline by approximately 100 bps. FD investors who locked in long-tenure deposits before the rate cut cycle began in 2025 are now holding above-market rates. For new FD investors, locking in 3-5 year FDs at current rates is a way to protect against any future rate cuts.
TDS on bank interest: what you actually earn after tax
Banks deduct TDS at 10% on FD interest income if the total interest from a single bank in a financial year exceeds Rs 40,000 (Rs 50,000 for senior citizens). If PAN is not furnished, TDS is deducted at 20%. TDS is deducted at source regardless of when the FD matures; banks compute accrued interest periodically and deduct accordingly. For a Rs 5 lakh FD at 7.75% for 1 year, the interest is approximately Rs 40,048, which is above the Rs 40,000 TDS threshold, so 10% TDS of approximately Rs 4,005 is deducted.
Submit Form 15G (below 60 years, total income below taxable limit) or Form 15H (senior citizens) at the start of each financial year to prevent TDS deduction. TDS is a payment on account, not a final tax. Declare all FD interest as income under "Income from Other Sources" when filing your ITR, and the final tax liability is determined by your applicable income tax slab. Use the TDS Calculator to see the exact TDS impact on any interest income.
How to maximize your FD returns in a falling rate environment
With the RBI in a rate-cutting cycle, FD rates will likely continue to decline over the next 12-18 months. The most effective strategy is laddering: split your FD corpus across three or four tenures (1Y, 2Y, 3Y, 5Y) instead of placing it all in one deposit. As each shorter FD matures, reinvest it at whatever rate is available. This prevents the full corpus from maturing at a low rate while giving you partial liquidity at regular intervals.
Locking in a meaningful portion in the 3-5 year range now secures the current rate for that period regardless of future RBI cuts. Yes Bank at 7.25% for 5 years and IndusInd at 7.25% for 5 years, or IDFC First at 7.00% for 5 years, are worth considering for the long end of the ladder.
Also consider splitting deposits across multiple banks to stay within the Rs 5 lakh DICGC insurance limit per bank. A Rs 30 lakh FD corpus in one bank is insured for Rs 5 lakh, while the same corpus split six ways across six banks is fully insured.
How to use this bank interest rate comparison tool
The calculator compares bank interest rates across five product types. Each tab runs independent inputs and shows a ranked comparison of all banks for your specific amount and tenure.
- Select the product tab: Choose FD Rates, Savings Account, Home Loan, Personal Loan, or Gold Loan. Each tab has independent inputs.
- Set your amount: Use the slider or click the value button to enter your deposit or loan amount. The slider range is preset for each product type.
- Choose tenure: Click the tenure pill that matches your requirement. FDs support 1Y, 2Y, 3Y, 5Y; home loans support 5Y to 30Y.
- Toggle senior citizen (FD tab only): Switch on the Senior Citizen toggle to see rates with bank-specific senior citizen bonuses (0.50-0.80% extra).
- Read the ranked table: Banks are sorted from best (highest return or lowest cost) to worst. The winner is highlighted in green. The "vs Best" column shows how much more or less you gain or pay vs the best bank.
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Frequently asked questions
Disclaimer: All rates shown reflect published rates from respective banks and institutions as of July 2026. Bank interest rates change frequently and without prior notice. This tool is for informational and comparison purposes only and does not constitute financial advice. Verify rates directly with the bank before investing or borrowing. Deposit insurance of Rs 5 lakh per depositor per bank is provided by DICGC, a wholly owned subsidiary of the Reserve Bank of India. Consult a SEBI-registered investment adviser before making investment decisions.