High FD Rate: Which bank is offering the highest interest on FDs? Where can you get an 8.60% return?

Highest FD Interest Rates: If you are looking to earn substantial returns on your hard-earned money from the comfort of your home—without taking any risks—then this news is directly relevant to your finances. Following the Reserve Bank of India’s hike in the repo rate, several banks have increased their fixed deposit (FD) interest rates. Let’s find out which bank in the country is currently offering the highest interest rate on FDs.

From small finance banks to major public and private sector banks, many have implemented new interest rates. In the race to offer the best FD rates, small finance banks appear to be outpacing the larger public and private sector banks. By choosing the right bank, you could potentially earn an impressive return of up to 8.60% on your FD.

Suryoday Small Finance Bank is currently offering some of the most attractive rates. The bank implemented its new interest rates effective October 30, 2026. It is offering a generous 8.25% interest rate to general customers on a 5-year FD, while senior citizens can earn as much as 8.60%.

Beyond the 5-year tenure, Suryoday Small Finance Bank also offers competitive interest rates on 18-month FDs. For an 18-month deposit, the bank provides an annual interest rate of 8.01% for general customers and 8.16% for senior citizens. This makes it an excellent option if you prefer not to lock away your funds for a very long period.

Utkarsh Small Finance Bank has also revised its FD interest rates, effective November 1. The bank has announced an annual interest rate of 8.10% for general customers and 8.50% for senior citizens on a special fixed deposit (FD) scheme with a tenure of 666 days. Additionally, for tenures ranging from 2 years to less than 3 years, the bank is offering an interest rate of 7.50% to general customers and 7.90% to senior citizens.

Kotak Mahindra Bank and Axis Bank are also offering attractive interest rates on FDs. Effective November 4, Kotak Mahindra Bank has revised its FD rates, now offering 6.80% to general customers and 7.55% to senior citizens for tenures of 2 years to less than 3 years. Meanwhile, Axis Bank is providing returns of up to 6.60% for general customers on FDs with tenures between 2 and 10 years, and up to 7.35% for senior citizens on FDs with tenures between 5 and 10 years.

Punjab National Bank (PNB) and Bank of India are also offering interest rates of up to 7.35% on FDs. PNB offers 6.60% interest to general customers and 7.10% to senior citizens on its 444-day special FD. Bank of India has launched a new 'BOI Akshay FD' scheme for deposits under ₹3 crore. Under this scheme, general citizens receive 6.85% interest, senior citizens (aged 60 to 80) receive 7.35%, and 'super senior citizens' (aged above 80) receive 7.50%.

Before investing in an FD, do not base your decision solely on the highest interest rate; instead, consider some fundamental principles. Before making an investment, ensure that the tenure of the deposit aligns with your overall financial plan. Additionally, be sure to carefully examine the penalties and terms applicable to premature withdrawals.

Another crucial point that every investor should keep in mind is the tax treatment of earnings from fixed deposits (FDs). Interest earned on a fixed deposit is not entirely tax-free; it is added to your annual income and becomes subject to taxation according to your applicable income tax slab.

Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.