FD Interest Rates 2026 — SBI vs HDFC vs Post Office vs Small Finance Banks
Compare fixed deposit interest rates across major banks, post office, and small finance banks — find who gives the best rate for your deposit tenure
📊FD Rates Comparison Table (March 2026)
| Bank/Institution | 1 Year | 3 Years | 5 Years | Senior Citizen Extra |
|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.50% | +0.50% |
| HDFC Bank | 7.00% | 7.15% | 7.00% | +0.50% |
| ICICI Bank | 6.90% | 7.10% | 7.00% | +0.50% |
| PNB | 6.80% | 7.00% | 6.50% | +0.50% |
| Bank of Baroda | 6.85% | 7.05% | 6.50% | +0.50% |
| Axis Bank | 7.00% | 7.10% | 7.00% | +0.50% |
| Post Office TD | 7.40% | 7.10% | 7.50% | N/A (SCSS 8.2% instead) |
| AU Small Finance Bank | 7.75% | 7.50% | 7.75% | +0.50% |
| Equitas SFB | 7.50% | 7.80% | 8.10% | +0.50% |
| Unity SFB | 8.00% | 8.00% | 8.00% | +0.50% |
| Bajaj Finance (NBFC) | 8.05% | 8.25% | 8.35% | +0.25% |
💡Key Insights — Where to Put Your Money
For maximum safety + decent rate: Post Office Time Deposit (7.5% for 5 years) — government-guaranteed, no DICGC limit. Or SBI/HDFC FD — DICGC covers up to ₹5 lakh per bank.
For highest rate with reasonable safety: Small Finance Banks (AU, Equitas) offer 7.5-8.1% — these are RBI-regulated and DICGC-insured up to ₹5 lakh. Keep deposits under ₹5 lakh per bank for full insurance coverage.
For highest absolute rate: Bajaj Finance and other AAA-rated NBFCs offer 8-8.5% — but these are NOT DICGC-insured. Only invest with AAA/AA+ rated companies and amounts you can afford to risk.
For senior citizens: Senior Citizen Savings Scheme (SCSS) at 8.2% beats ALL FDs. Maximum ₹30 lakh investment. After maxing SCSS, use senior citizen FD rates at small finance banks (8.5-8.6%).
Important: These rates change quarterly. Always verify current rates on the bank's official website before investing. The rates above are indicative as of March 2026.
🎯Strategy: Ladder Your FDs for Best Returns
Don't put all money in one FD at one rate. Instead, split across tenures and banks:
Example with ₹10 lakh:
₹3 lakh in AU SFB 1-year FD at 7.75% — liquidity for near-term needs.
₹3 lakh in Post Office 5-year TD at 7.50% — government safety for medium-term.
₹2 lakh in Bajaj Finance 3-year FD at 8.25% — higher return for money you won't need.
₹2 lakh in Equitas SFB 5-year at 8.10% — highest bank FD rate.
This 'laddering' gives you: (1) better average return than a single bank FD, (2) staggered maturities for liquidity, (3) diversified risk across institutions. As each FD matures, re-invest at the best available rate.