FD Interest Rates 2026 - SBI vs HDFC vs Post Office vs Small Finance Banks
Compare fixed deposit interest rates across major banks, post office, small finance banks - find best rate for your deposit tenure.
📊FD Rates Comparison March 2026
| Bank/Institution | 1 Year | 3 Years | 5 Years | Senior 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% |
| Axis Bank | 7.00% | 7.10% | 7.00% | +0.50% |
| Post Office TD | 7.40% | 7.10% | 7.50% | N/A (SCSS 8.2%) |
| AU Small Finance | 7.75% | 7.50% | 7.75% | +0.50% |
| Equitas SFB | 7.50% | 7.80% | 8.10% | +0.50% |
| Bajaj Finance NBFC | 8.05% | 8.25% | 8.35% | +0.25% |
Small finance banks (AU, Equitas) offer highest rates. Post office is best among government-backed options. All bank FDs are DICGC insured up to ₹5 lakh.
💡Where to Put Your Money
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 5L per bank.
Highest Rate with Safety
Small Finance Banks (AU, Equitas) offer 7.5-8.1% - RBI-regulated, DICGC-insured up to 5L. Keep deposits under 5L per bank for full coverage.
Highest Absolute Rate
Bajaj Finance and AAA-rated NBFCs offer 8-8.5% - 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 30L investment.
After maxing SCSS, use senior citizen FD rates at small finance banks (8.5-8.6%).
Important: Rates Change Quarterly
Always verify current rates on bank websites before investing.
🎯Strategy: Ladder Your FDs
Don't put all money in one FD. Split across tenures and banks for better returns.
10 lakh example: 3L in AU SFB 1-year at 7.75%, 3L in Post Office 5-year at 7.50%, 2L in Bajaj Finance 3-year at 8.25%, 2L in Equitas SFB 5-year at 8.10%.
Benefits: (1) Better average return than single bank, (2) Staggered maturities for liquidity, (3) Diversified risk.
Don't chase the highest rate blindly
💡Don't chase the highest rate blindly
A 0.5% higher rate on ₹5 lakh for 1 year = ₹2,500 extra interest. If the bank has poor customer service, branch accessibility issues, or you're above the ₹5L DICGC insurance limit, the risk isn't worth ₹2,500. For amounts above ₹5L, stick to SBI/HDFC/ICICI. For amounts under ₹5L, small finance banks are safe and pay more.
❓Frequently Asked Questions
March 2026