Best FD Interest Rates 2026: Compare SBI, HDFC, ICICI and IndusInd Bank Returns

Best FD Rates: Fixed Deposits (FDs) continue to be a cornerstone for safe investments in India, especially for those looking for guaranteed returns over a short tenure. A one-year Fixed Deposit is particularly popular among salaried individuals and senior citizens who want to park their savings securely while earning a decent interest. However, interest rates vary significantly from bank to bank. Before you invest a lump sum, say ₹5 lakh, it is crucial to compare which bank helps maximize your returns.

Top Performer in 1-Year FD Rates

When comparing current market rates, some private sector banks are offering more attractive returns than public sector giants. According to available data, IndusInd Bank stands out in the one-year FD segment.

• Interest Rate: The bank offers an interest rate of approximately 6.75%.
• Maturity Value: If you invest ₹5 lakh for one year, the maturity amount would be around ₹5,34,614. This is currently higher than what most major public sector banks are offering.

Rates Offered by Major Banks (SBI, HDFC, ICICI)

Most leading banks in India have clustered their interest rates around a similar bracket for the one-year tenure. This group includes the country’s largest lender, State Bank of India (SBI), along with private giants like HDFC Bank, ICICI Bank, Axis Bank, and Canara Bank.

• Common Rate: These banks are offering an interest rate of approximately 6.25% on one-year FDs.
• The Calculation: An investment of ₹5 lakh in any of these banks would yield a maturity amount of roughly ₹5.32 lakh (specifically around ₹5,31,990).
• Trust Factor: While SBI offers 6.25%, many investors still prefer it due to the sovereign backing and trust associated with a public sector bank (PSU).

Bank of Baroda FD Rates

Another major player, Bank of Baroda, is offering slightly lower returns compared to its peers in this specific tenure.

• Current Rate: The bank offers 6.10% interest on one-year FDs.
• Returns: A ₹5 lakh deposit here would grow to approximately ₹5,31,205 after one year. While the return is marginally lower, the safety of a government-owned bank remains a key attraction for conservative investors.

Smart Investment Tips

Choosing the right bank involves balancing high returns with safety.

• For Higher Gains: If your priority is maximizing the maturity amount, IndusInd Bank appears to be a lucrative option currently.
• For Stability: If you prefer the absolute security of PSU banks and are willing to compromise slightly on returns, SBI or Canara Bank remain solid choices.
• Compare: Even a small difference in interest rates can impact your total earnings on amounts like ₹5 lakh. Always check the latest rates before opening an account.

Disclaimer: This article is for informational purposes only. Interest rates are subject to change by banks. Please consult a financial advisor or check with the respective bank before making investment decisions.