FD Rates June 2026: Up to 8.05% Interest on Fixed Deposits, Check Latest Returns Offered by Ujjivan, PNB and Union Bank

Fixed Deposit (FD) investors looking for stable and attractive returns have several options to consider in June 2026. A number of banks have revised their FD interest rates this month, offering competitive returns across different tenures. Among the latest offerings, Ujjivan Small Finance Bank has emerged as the most rewarding option for senior citizens, with interest rates reaching as high as 8.05% on select deposits.

Meanwhile, Punjab National Bank (PNB) and Union Bank of India have also updated their fixed deposit rates, giving investors multiple choices depending on their investment horizon and risk preferences. Before locking your money into an FD, comparing interest rates across banks can help maximize returns.

Ujjivan Small Finance Bank Offers Highest FD Returns

Ujjivan Small Finance Bank has revised its fixed deposit interest rates effective June 5, 2026. The bank currently offers interest rates ranging from 3.50% to 7.55% for regular customers and 4.00% to 8.05% for senior citizens on deposits below ₹3 crore.

The highest return is available to senior citizens investing for a tenure between 3 years 1 day and 3 years 6 months, where the bank is offering an attractive 8.05% annual interest rate. Regular investors in the same tenure can earn up to 7.55%.

Apart from long-term deposits, the bank also provides competitive returns on medium-term investments. Deposits with a tenure of two years offer up to 7.90% for senior citizens, making Ujjivan one of the most aggressive players in the FD market currently.

Punjab National Bank Revises Interest Rates

Punjab National Bank has implemented new FD rates from June 1, 2026. The public sector lender is offering interest rates between 3.00% and 6.60% for regular customers on deposits below ₹3 crore.

Senior citizens receive an additional 0.50% interest benefit, while super senior citizens aged 80 years and above are eligible for even higher returns on selected tenures.

One of the most attractive schemes offered by PNB is the 444-day fixed deposit. Under this tenure, regular customers earn 6.60%, senior citizens receive 7.10%, and super senior citizens can earn up to 7.40%.

The bank is also offering competitive returns on deposits ranging from one year to three years, making it a suitable option for conservative investors seeking the safety of a government-owned bank.

Union Bank Offers Attractive Returns on Special Tenures

Union Bank of India has also revised its FD interest rates from June 1, 2026. The bank is currently offering rates between 2.70% and 6.65% for general customers on deposits below ₹3 crore.

Senior citizens receive an additional 0.50% interest over and above the standard rates.

The standout tenure at Union Bank is the 555-day fixed deposit, where regular customers can earn 6.65%. For senior citizens, the effective return rises to approximately 7.15%, making it one of the bank’s most attractive offerings.

Investors looking for medium-term deposits between one and three years can also benefit from rates above 6%, depending on the chosen tenure.

Which Bank Is Offering the Best FD Rate?

Based on the latest interest rates available in June 2026, Ujjivan Small Finance Bank is offering the highest return among the three banks compared.

For senior citizens, the bank provides a maximum interest rate of 8.05% on deposits with a tenure of 3 years 1 day to 3 years 6 months. In comparison, PNB offers up to 7.40% to super senior citizens on its 444-day FD scheme, while Union Bank offers up to 7.15% to senior citizens on its 555-day deposit plan.

Things Investors Should Consider Before Opening an FD

While higher interest rates are important, investors should also evaluate other factors before choosing a fixed deposit. These include the bank's financial strength, liquidity needs, premature withdrawal rules, deposit insurance coverage, and investment duration.

Senior citizens, in particular, may benefit from comparing special FD schemes that provide additional interest benefits. Investors should also assess whether they require regular income through interest payouts or prefer cumulative deposits for higher maturity value.

With banks revising their rates frequently, June 2026 presents an opportunity for savers to review their investment plans and lock in attractive FD returns before any future changes in interest rates.

For investors seeking maximum returns, Ujjivan Small Finance Bank currently leads the pack, while PNB and Union Bank continue to offer competitive and secure options backed by established banking networks.