What is the highest FD interest rate in India in 2026?

As of June 2026, small finance banks offer the highest FD rates — Suryoday and Utkarsh SFB offer up to 8.10% p.a. Among major banks, HDFC Bank offers up to 7.20% for special tenures and Kotak Mahindra Bank up to 6.80% for general citizens.

Is FD interest taxable in India?

Yes. FD interest is fully taxable as 'Income from Other Sources' at your income slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹50,000 (₹1 lakh for senior citizens). Submit Form 121 (replaces Form 15G/15H from April 2026) to avoid TDS if your total income is below the taxable limit.

Which is better — FD or SIP?

FD is better for short-term goals (1–3 years), capital safety, and guaranteed returns. SIP in equity mutual funds is better for long-term wealth creation (5+ years), offering 12–15% CAGR historically with better tax efficiency via LTCG at 12.5%. For goals under 3 years, FD wins. For retirement planning, SIP wins.

What is DICGC insurance on FD?

DICGC (Deposit Insurance and Credit Guarantee Corporation) insures all bank deposits — savings, current, FD, and RD combined — up to ₹5 lakh per depositor per bank. Spread deposits across multiple banks to multiply your insured coverage.

How is FD maturity calculated?

FD Maturity = P × (1 + r/n)^(n×t), where P = Principal, r = Annual interest rate, n = Compounding frequency per year (1=Annual, 4=Quarterly, 12=Monthly), and t = Tenure in years. Use the calculator above to get instant results.

FD Return Calculator 2026 — Fixed Deposit Maturity Value

India's most detailed FD calculator. Compute maturity value, interest earned, TDS impact, and real post-tax return — instantly.

📌 Updated June 2026 🏠 DICGC Insured up to ₹5L 📋 Includes Tax (TDS) ✅ RBI Repo Rate: 5.25%

FD Calculator

See How Your Fixed Deposit Grows

Adjust the sliders and your maturity value updates live — including tax impact.

Principal Amount₹5.00 L

₹10,000₹50 Lakh

Interest Rate (p.a.)7.5%

3%9.5%

CompoundingAnnually

AnnuallyMonthly

Tenure1 Year

1 Month10 Years

+8%estimated gain

Principal Interest

Your Tax Slab

Principal Amount₹5.00 L

Interest Earned+₹0.39 L

Tax on Interest-₹0.08 L

Post-Tax Eff. Rate6.00% p.a.

Maturity Value₹5.39 L

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Vikash Royal ARN-356458
B.E. | MBA Finance | NISM Certified | 7+ Years in Finance

🏢 Top Bank FD Interest Rates — June 2026

Rates for retail deposits below ₹3 crore. Senior citizens typically earn an additional 0.50% p.a. RBI repo rate held at 5.25% — rates are stable but may soften later in 2026.

Bank	Type	1 Year	2 Years	3 Years	5 Years	Best Rate	Senior Citizen
SBI PSU	Public	6.80%	7.00%	6.75%	6.50%	6.80%*	6.80–7.05%
HDFC Bank PVT	Private	6.60%	7.00%	7.20%	6.40%	7.20%	7.10–7.75%
ICICI Bank PVT	Private	6.70%	7.00%	6.50%	6.50%	7.00%	7.20–7.10%
Axis Bank PVT	Private	6.70%	7.10%	7.10%	7.00%	7.10%	7.20–7.60%
Kotak Mahindra PVT	Private	7.10%	6.80%	6.80%	6.20%	7.10%	7.60–7.30%
PNB PSU	Public	6.75%	6.50%	6.50%	6.50%	6.60%†	7.10%
Bank of Baroda PSU	Public	6.85%	7.15%	7.15%	6.50%	7.15%	6.95%
Canara Bank PSU	Public	6.85%	6.85%	6.90%	6.70%	6.90%	7.40%
Federal Bank PVT	Private	6.80%	7.25%	7.25%	6.60%	7.25%	7.75%
AU Small Finance SFB	Small Finance	7.25%	7.50%	7.50%	7.25%	7.50%	8.00%
Jana SFB SFB	Small Finance	7.50%	7.77%	7.77%	7.50%	7.77%	8.27%
Suryoday SFB SFB	Small Finance	7.75%	8.00%	8.10%	8.00%	8.10%	8.60%
Post Office TD	Govt.	6.90%	7.00%	7.10%	7.50%	7.50%	Same + 80C

* SBI Amrit Vrishti 444-day special scheme at 6.45% for general, 6.95% senior. † PNB highest on 444-day tenure. All rates indicative as of June 2026, subject to change. Always verify on the bank's official website before investing. DICGC insures all bank deposits up to ₹5 lakh per depositor per bank. Post Office TD backed by sovereign guarantee.

💡 4 Smart FD Strategies for 2026

With RBI holding repo rate at 5.25%, now is an ideal window to lock in long-term FD rates before anticipated cuts later in 2026.

🆝

FD Laddering Strategy

Instead of one ₹10L FD, open 5 FDs of ₹2L each at 1, 2, 3, 4 and 5-year tenures. You earn higher rates on longer tenures and get liquidity every year without premature withdrawal penalty.

🏠

DICGC Cover: Spread ₹5L per Bank

DICGC insures all your deposits (savings + FD + RD) up to ₹5 lakh per depositor per bank. If you have ₹20L to invest, spread across 4 banks — not one — for full insurance protection.

📋

File Form 121 (replaces 15G/15H)

From April 2026, the new Form 121 replaces Form 15G and Form 15H under the Income-tax Act 2025. Submit it at the start of each financial year to your bank to avoid TDS on FD interest if your income is below the taxable limit.

⚠️

Tax-Saving FD: Think Before You Lock

Tax-saver FDs (5-year lock-in) give Section 80C deduction up to ₹1.5L but offer lower rates (~6.0–6.5%). If your 80C is already full from EPF + insurance, skip it and pick a regular FD at the highest available rate.

⚖️ FD vs SIP — Complete Comparison 2026

Both are popular, but they serve very different goals. Here's the honest side-by-side breakdown.

Parameter	Fixed Deposit (FD)	SIP in Mutual Funds
Returns	6.0–8.1% p.a. (guaranteed)	12–15% CAGR (historical, not guaranteed)
Risk	Zero market risk	Market risk (equity volatility)
Ideal Tenure	1 month – 3 years	5+ years for best results
Taxation	Interest taxed at slab rate (worst for 30% bracket)	LTCG 12.5% after 1 year (equity funds)
Post-tax return (30% slab)	~5.25% on 7.5% FD	~12% after LTCG (equity)
Liquidity	Premature exit = 0.5–1% penalty	Exit anytime (open-ended funds)
Capital Safety	DICGC insured up to ₹5L	NAV can fall in short term
Regular Income	Monthly / Quarterly payout option	SWP option, but NAV-dependent
Investment Mode	Lumpsum (one-time)	Monthly SIP or lumpsum
Minimum Amount	₹1,000 (SBI)	₹500/month SIP
Best For	Emergency fund, short goals, senior citizens	Retirement, wealth creation, 5–30 yr goals

📌 Pocket Wealth Verdict: Use FDs for the safe, stable portion of your portfolio — emergency fund, short-term goals under 3 years, or to balance equity risk. Use SIP for long-term wealth creation. A well-designed portfolio has both. Speak to Vikash Royal (ARN: ARN-356458) to find the right split for your goals.

📈 FD Maturity Value Table — ₹1 Lakh at Popular Rates

Quarterly compounding. Pre-tax maturity values for quick reference. Use the calculator above for your exact amount.

Tenure	@ 6.50%	@ 7.00%	@ 7.50%	@ 8.00%	@ 8.50%
6 Months	₹1,03,272	₹1,03,522	₹1,03,773	₹1,04,040	₹1,04,307
1 Year	₹1,06,644	₹1,07,186	₹1,07,714	₹1,08,243	₹1,08,774
2 Years	₹1,13,727	₹1,14,888	₹1,16,054	₹1,17,165	₹1,18,286
3 Years	₹1,21,350	₹1,23,144	₹1,24,965	₹1,26,824	₹1,28,690
5 Years	₹1,37,898	₹1,41,478	₹1,45,140	₹1,48,886	₹1,52,716
7 Years	₹1,56,655	₹1,62,710	₹1,68,944	₹1,75,351	₹1,81,935
10 Years	₹1,88,454	₹1,98,889	₹2,09,757	₹2,21,094	₹2,32,928

Maturity values calculated using quarterly compounding formula: M = P × (1 + r/4)^(4×t). Values are approximate pre-tax figures. For personalized calculation with your tax slab, use the calculator above.

❓ Frequently Asked Questions on FD

Answers to the most searched questions about Fixed Deposits in India.

As of June 2026, Suryoday Small Finance Bank and Utkarsh Small Finance Bank offer the highest FD rates at 8.10% p.a. on select tenures. Among major private banks, HDFC Bank leads at 7.20% for special tenures. Public sector banks like SBI offer up to 6.80% (6.95% on the Amrit Vrishti 444-day scheme for senior citizens). The RBI has held the repo rate at 5.25%, keeping FD rates broadly stable.

Yes. FD interest is fully taxable as "Income from Other Sources" at your income slab rate. Banks deduct TDS at 10% if your annual FD interest exceeds ₹50,000 (₹1 lakh for senior citizens). From April 2026, the new Form 121 (replacing Form 15G/15H under the Income-tax Act 2025) can be submitted to your bank to avoid TDS deduction if your total income is below the taxable limit.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary, insures all bank deposits — savings account, current account, FD, and RD combined — up to ₹5 lakh per depositor per bank. If a bank fails, you are paid within 90 days. If you have ₹25 lakh to invest, spread it across 5 different banks (₹5L each) to ensure 100% DICGC coverage. Post Office Time Deposits are backed by the Government of India sovereign guarantee — no cap.

They serve different purposes. FD wins for capital safety, short-term goals (1–3 years), senior citizens needing regular income, and the emergency fund portion of your portfolio. SIP wins for long-term wealth creation (5+ years) — equity mutual funds have historically delivered 12–15% CAGR with better tax efficiency (LTCG at 12.5% vs FD interest taxed at 30% slab). A balanced portfolio combines both. Talk to our advisor to find your ideal split.

Premature FD withdrawal is allowed at most banks, but comes with a penalty of 0.50–1% on the applicable rate. The bank also re-rates your deposit to the rate applicable for the actual tenure held (which is usually lower than the booked rate). Better alternative: Take a Loan Against FD — you can borrow up to 90% of your FD value at just 1–1.5% above your FD rate, keeping your FD intact and earning full interest.

FD Maturity Amount = P × (1 + r/n)^(n×t)

Where: P = Principal amount | r = Annual interest rate (decimal) | n = Compounding frequency per year (Annual=1, Half-Yearly=2, Quarterly=4, Monthly=12) | t = Tenure in years.

Example: ₹5 lakh at 7.5% quarterly compounding for 3 years = ₹5,00,000 × (1 + 0.075/4)^(4×3) = ₹6,24,825. Use the calculator above to compute your exact maturity value instantly.

🚀 Want Better Returns Than FD?

Talk to Vikash Royal about debt mutual funds, short-duration funds, and hybrid strategies that can outperform FDs on a post-tax basis — with professional SEBI-registered guidance. ARN: ARN-356458

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