FD interest rates changed on October 1? Find out which bank offers higher returns on ₹1 lakh.

New FD rules came into effect on October 1, 2026. Here, you can learn how these changes impact an FD of ₹1 lakh. Find out what kind of returns different banks offer on FDs.

If you are planning to invest money in a bank FD, it is important for you to know about the new rules implemented on October 1, 2026. However, there is also considerable confusion among people regarding these changes.

The key point is that the new rules primarily apply to large deposits—or "bulk deposits"—exceeding ₹3 crore. Therefore, if you are opening an FD for an amount like ₹1 lakh or ₹2 lakh, you do not need to worry about these changes.

What has changed in the FD rules?

The Reserve Bank of India has modified the regulations concerning interest rates on deposits, effective October 1, 2026. Under the new rules, banks are required to disclose interest rates for bulk deposits exceeding ₹3 crore. Banks must publish the interest rates for bulk FDs on their websites on a daily basis.

How much interest will an FD of ₹1 lakh earn?

If you are opening an FD of ₹1 lakh, the return will depend on the bank you choose and the tenure of the deposit.

For instance, according to the retail FD rates effective from September 29, 2026, on the Jana Small Finance Bank website, customers earn an annual interest rate of 7.30% on FDs with tenures ranging from 367 days to 2 years. Meanwhile, the rate is 8% for tenures between 2 and 3 years.

How much interest do major banks offer?

If you are considering opening an FD with a major public or private sector bank, the interest rates offered are lower than those of small finance banks. For SBI retail FDs with tenures ranging from one year to less than two years, customers earn 6.25% interest, while senior citizens receive 6.75%.

Meanwhile, according to HDFC Bank's rates effective from August 19, 2026, customers earn 6.25% and senior citizens 6.75% on FDs with tenures between one year and less than 15 months. Furthermore, for tenures of 18 to 21 months, the rate for customers stands at 6.45%. At Axis Bank, the interest rate for FDs ranging from one year to one year and 10 days is 6.25% for customers and 6.75% for senior citizens.

Where can you get higher returns?

If one compares only interest rates, certain small finance banks are currently offering higher rates than major banks. Data from September shows that rates on some FDs at Suryoday Small Finance Bank reached up to 8.25%, while Jana Small Finance Bank offered up to 8% for certain tenures.

If your primary focus is on earning higher interest, small finance banks can offer better returns. However, looking solely at the interest rate is not the right approach when choosing an FD.