Where will you earn the highest returns on a ₹10 lakh FD? Find out which banks are offering interest rates above 8%..

Best Returns on FDs: Fixed Deposits (FDs) have long been the preferred choice for Indian investors looking to earn better returns while keeping their hard-earned money safe. As of August 2026, if you are planning to invest a substantial amount—such as ₹10 lakh—in an FD, small finance banks are offering the highest interest rates. Even a marginal difference in FD interest rates can significantly boost your total earnings over the long term. This proves particularly beneficial for senior citizens investing large sums. To maximize your interest income without taking on extra risk, it is essential to be well-informed about the interest rates offered by various banks.

Small Finance Banks Offering the Highest Interest Rates (Up to 8.10%)

Small finance banks are leading the way in offering the highest returns on an investment of ₹10 lakh. As of August 2026, these banks are offering interest rates of up to 8.10%. The full list is provided below:

Suryoday Small Finance Bank: Interest rate up to 8.10%.

Utkarsh Small Finance Bank: Interest rate up to 8.10%.

Shivalik Small Finance Bank: Interest rate up to 8%.

Jana Small Finance Bank: Interest rate up to 8%.

Equitas Small Finance Bank: Interest rate up to 8%.

Ujjivan Small Finance Bank: Interest rate up to 7.80%.

Slice Small Finance Bank: Interest rate up to 7.75%. Private banks offering interest rates up to 7.50%

Private sector banks are also offering attractive FD interest rates across various tenures.

DCB Bank: Interest rate up to 7.50%.

Bandhan Bank: Interest rate up to 7.45%.

IDFC FIRST Bank: Interest rate up to 7.25%.

Kotak Mahindra Bank: Interest rate up to 6.80%.

Axis Bank: Interest rate up to 6.50%.

HDFC Bank: Interest rate up to 6.50%.

ICICI Bank: Interest rate up to 6.50%.

Public sector banks offering stable and safe returns

Among public sector banks, Punjab & Sind Bank and Bank of India are offering the highest FD interest rates to their customers:

Punjab & Sind Bank: Interest rate up to 6.85%.

Bank of India: Interest rate up to 6.85%.

Central Bank of India: Interest rate up to 6.75%.

Bank of Baroda: Interest rate up to 6.75%.

Indian Bank: Interest rate up to 6.65%.

Punjab National Bank: Interest rate up to 6.60%.

State Bank of India: Interest rate up to 6.45%.

What interest rates are foreign banks offering?

Among foreign banks operating in India, Deutsche Bank is offering the best interest rates—

Deutsche Bank: Interest rate up to 7%.

Standard Chartered Bank: Interest rate up to 6.60%.

HSBC Bank: Interest rate up to 5.50%. Expert Advice: How to Safely Invest ₹10 Lakh?

Market experts suggest that if you are investing ₹10 lakh, you should distribute the amount across multiple banks rather than keeping the entire sum in a single bank. Doing so ensures you remain protected under the ₹5 lakh deposit insurance cover provided by each bank. To secure higher returns, choose small finance banks wisely and select the Fixed Deposit (FD) tenure based on your liquidity needs—that is, when you might require the funds. Thanks to deposit insurance protection and stable returns, FDs remain a highly reliable investment option for retirees.