Bank FD and RD Interest Rates 2026: Complete Guide

Bank FD and RD interest rates in 2026 are currently reaching up to 6.80% p.a. for regular customers and up to 7.30% p.a. for senior citizens among the major banks covered in this guide. The exact rate depends on the bank, deposit tenure, amount, and customer category.

For example, SBI’s special 444-day FD offers 6.45%, HDFC Bank offers up to 6.50%, ICICI Bank offers up to 6.50%, PNB’s 444-day FD offers 6.60%, and Kotak Mahindra Bank offers up to 6.80% on retail deposits below ₹3 crore.

Here is a detailed look at the latest bank FD and RD interest rates in 2026, how much senior citizens can earn, and what to check before locking in your money.

Bank FD Interest Rates 2026: Latest Comparison

The table below compares some of the highest published retail FD rates available from major Indian banks covered in this guide.

Bank	Maximum FD rate for general customers	Maximum rate for senior citizens	Tenure offering the highlighted rate
SBI	6.45%	6.95%	444 days / selected 2 to 3-year tenure
HDFC Bank	6.50%	7.00%	3 years 1 day to under 4 years 7 months
ICICI Bank	6.50%	7.10%	3 years 1 day to 5 years
Punjab National Bank	6.60%	7.10%	444 days
Kotak Mahindra Bank	6.80%	7.30%	2 years to under 3 years

Rates checked against published 2026 bank rate schedules and are subject to change. The table focuses on retail deposits and comparable callable deposit categories where applicable.

SBI FD interest rates in 2026

SBI’s retail domestic term deposit rates include:

Tenure	General public	Senior citizens
211 days to less than 1 year	5.90%	6.40%
1 year to less than 2 years	6.25%	6.75%
444 days, Amrit Vrishti	6.45%	6.95%
2 years to less than 3 years	6.40% to 6.45%*	6.90% to 6.95%*
3 years to less than 5 years	6.30%	6.80%
5 years to 10 years	6.05%	7.05%*

SBI states that the Amrit Vrishti 444-day rate was revised to 6.45% from December 15, 2025.

*Specific SBI rates and senior citizen benefits can depend on the applicable deposit scheme and tenure. Check the bank’s current rate card before booking.

HDFC Bank FD interest rates in 2026

For domestic deposits below ₹3 crore, HDFC Bank’s rates effective March 6, 2026 include:

Tenure	General citizen	Senior citizen
6 months 1 day to 9 months	5.50%	6.00%
9 months 1 day to under 1 year	5.75%	6.25%
1 year to under 15 months	6.25%	6.75%
15 months to under 18 months	6.35%	6.85%
18 months to 2 years	6.45%	6.95%
2 years 1 day to 3 years	6.45%	6.95%
3 years 1 day to under 4 years 7 months	6.50%	7.00%
5 years 1 day to 10 years	6.15%	6.65%

The highest rate in this retail schedule is 6.50% for general citizens and 7.00% for senior citizens.

ICICI Bank FD interest rates in 2026

ICICI Bank’s retail FD rates effective June 18, 2026 offer up to 6.50% for general citizens and 7.10% for senior citizens.

Tenure	General citizen	Senior citizen
2 years 1 day to 3 years	6.45%	Up to 6.95%
3 years 1 day to 5 years	6.50%	7.10%
5 years 1 day to 10 years	6.50%	7.00%

For someone looking at a three to five-year FD, the 7.10% senior citizen rate is particularly relevant.

PNB FD interest rates in 2026

Punjab National Bank revised its retail FD rates in February 2026. The published range was 3.00% to 6.60% for general citizens, 3.50% to 7.10% for senior citizens, and up to 7.40% for eligible super senior citizens.

Its 444-day FD offered:

• General citizen: 6.60%
• Senior citizen: 7.10%
• Super senior citizen: 7.40%

These rates applied to the relevant retail deposit category below ₹3 crore.

Kotak Mahindra Bank FD interest rates in 2026

Kotak Mahindra Bank’s rates effective June 10, 2026 show one of the stronger rates among the major banks covered here.

Tenure	General citizen	Senior citizen
365 days to under 15 months	6.35%	6.85%
15 months to under 18 months	6.45%	6.95%
18 months to under 2 years	6.55%	7.05%
2 years to under 3 years	6.80%	7.30%
3 years to under 5 years	6.40%	6.90%
5 years to 10 years	6.25%	6.75%

The highest rate in this schedule for deposits below ₹3 crore is 6.80% for regular customers and 7.30% for senior citizens.

Bank RD Interest Rates 2026

Recurring deposit rates can be similar to FD rates, but an RD works differently because you invest money in monthly instalments instead of depositing the entire amount on day one.

Among the banks for which current RD schedules are available, rates can reach 6.80% for general customers and 7.30% for senior citizens, depending on tenure.

ICICI Bank RD interest rates

ICICI Bank’s RD rates effective December 29, 2025 and published for 2026 are:

RD tenure	General citizen	Senior citizen
Up to 6 months	4.50%	5.00%
Above 6 to 9 months	5.50%	6.00%
Above 9 to 15 months	6.25%	6.75%
Above 15 months to 2 years	6.30%	6.80%
Above 2 to 3 years	6.45%	6.95%
Above 3 to 5 years	6.50%	7.10%
Above 5 to 10 years	6.50%	7.00%

ICICI Bank also states that its RD tenure can range from six months to 10 years.

Kotak Mahindra Bank RD interest rates

Kotak’s RD rates effective June 10, 2026 include:

RD tenure	General citizen	Senior citizen
6 months	5.50%	6.00%
9 months	6.00%	6.50%
12 months	6.35%	6.85%
15 months	6.45%	6.95%
18 months	6.55%	7.05%
24 to 33 months	6.80%	7.30%
3 years to under 4 years	6.40%	6.90%
5 to 10 years	6.25%	6.75%

This makes the 24 to 33-month tenure at 6.80% for regular customers and 7.30% for senior citizens one of the more attractive RD options in the schedules compared here.

FD vs RD: What Is the Difference?

A fixed deposit is usually better when you already have a lump sum. A recurring deposit is designed for people who want to save a fixed amount every month.

Feature	Fixed Deposit	Recurring Deposit
Investment	One-time lump sum	Monthly instalments
Best for	Existing savings	Monthly savings
Interest	Fixed according to tenure	Fixed according to RD tenure
Market risk	No direct market exposure	No direct market exposure
Return predictability	High if held to maturity	High if instalments are maintained
Premature closure	Usually allowed with conditions	Depends on bank rules
Saving discipline	Not required after deposit	Requires regular contributions

For example, if you already have ₹5 lakh, an FD lets the entire ₹5 lakh start earning interest immediately.

If you can save ₹10,000 each month, an RD lets you build the corpus gradually without needing ₹1.2 lakh upfront.

How Is FD Interest Calculated?

Most cumulative bank FDs compound interest periodically. This means interest earned in an earlier period can itself earn interest later.

The basic compound interest relationship is:

The actual maturity value depends on the bank’s compounding frequency, deposit amount, tenure, and applicable rate.

Example: ₹5 lakh FD at 6.50%

Suppose you invest ₹5 lakh at 6.50% p.a. for three years.

A simple 6.50% calculation would suggest ₹32,500 of interest for one full year, but an actual cumulative FD can earn more over multiple years because of compounding.

The bank’s FD calculator or maturity schedule should therefore be used for the exact maturity amount.

How Does RD Interest Work?

RD interest works differently because each instalment remains invested for a different period.

Suppose you deposit ₹10,000 every month for two years.

Your first ₹10,000 instalment earns interest for almost the entire RD tenure. The final instalment earns interest for a much shorter period.

That is why a 6.50% RD does not produce the same rupee return as investing the full two-year contribution upfront in a 6.50% FD.

Which Bank Has the Highest FD Interest Rate in 2026?

Among the major banks specifically compared in this guide, Kotak Mahindra Bank offers up to 6.80% p.a. for general customers and 7.30% p.a. for senior citizens on deposits below ₹3 crore for the 2-year to under 3-year tenure, according to its June 2026 rate schedule.

PNB’s 444-day FD offered 6.60%, 7.10%, and 7.40% for general, senior, and eligible super senior citizens respectively following its February 2026 revision.

This does not mean these are the highest FD rates available anywhere in India. Small finance banks and other institutions may offer higher rates.

Always compare the bank, tenure, withdrawal conditions, and deposit insurance rather than choosing an FD solely because of the highest percentage.

Do Senior Citizens Get Higher FD Interest Rates?

Yes. Many banks provide senior citizens with an additional interest rate on eligible domestic deposits.

For example:

• HDFC Bank: up to 7.00%
• ICICI Bank: up to 7.10%
• Kotak Mahindra Bank: up to 7.30%
• PNB: up to 7.10% for senior citizens on its highlighted 444-day deposit
• SBI: 6.95% on the highlighted 444-day Amrit Vrishti deposit

The extra interest becomes more meaningful as the deposit amount and tenure increase.

Are Bank FDs and RDs Safe?

FDs and RDs at insured banks are covered by India’s Deposit Insurance and Credit Guarantee Corporation, subject to its rules.

DICGC insures eligible savings, current, fixed and recurring deposits up to ₹5 lakh per depositor per bank in the same right and capacity. The ₹5 lakh ceiling includes both principal and accrued interest.

Does ₹5 lakh insurance apply to each FD?

No.

Suppose you have the following accounts at the same insured bank:

• Savings account: ₹1 lakh
• FD: ₹3 lakh
• RD: ₹1.5 lakh

Your total deposits are ₹5.5 lakh.

If they are held in the same right and capacity, DICGC generally aggregates them. The maximum insurance coverage would be ₹5 lakh, not ₹5 lakh for each account.

Deposits held with different insured banks are covered separately, subject to DICGC rules.

Is FD and RD Interest Taxable?

Interest earned from bank FDs and RDs is generally taxable according to applicable income-tax rules.

Do not confuse TDS with your final tax liability. TDS is tax deducted at source, while your actual tax depends on your taxable income, applicable regime, deductions, and other circumstances.

Senior citizens may also have specific tax benefits available on eligible deposit interest.

What is Section 80TTB?

Section 80TTB provides eligible senior citizens a deduction of up to ₹50,000 on qualifying interest earned from deposits with banks, post offices and co-operative banks.

The Income Tax Department confirms that eligible interest can include savings and fixed deposit interest.

Tax rules can change and eligibility depends on individual circumstances, so check the provisions applicable to the relevant financial year before filing your return.

What Happens If You Break an FD Early?

Banks usually allow premature withdrawal on callable FDs, but you may not receive the originally advertised return.

Depending on the bank, the interest may be recalculated based on how long the money actually remained deposited. A premature withdrawal penalty can also apply.

For example, ICICI Bank states that premature withdrawal interest is based on the actual period the deposit remained with the bank, with specified penalties applying depending on tenure and deposit amount.

So, do not put your entire emergency fund into a long-term FD just because that tenure offers an extra 0.20% or 0.30%.

What Happens If You Miss an RD Instalment?

Banks may impose a penalty if an RD instalment is delayed.

For example, ICICI Bank lists a late instalment penalty of ₹12 per ₹1,000 per month, with part of a month treated as a full month for calculating the penalty.

If you use an RD for disciplined saving, setting up an automatic debit soon after salary day can help avoid missed contributions.

How to Choose the Best FD in 2026

The FD with the highest interest rate is not automatically the best deposit.

Compare these factors before investing:

1. Interest rate: Compare rates for the exact tenure you need.
2. Tenure: Avoid locking money for longer than your financial goal requires.
3. Senior citizen benefit: Check the additional rate if you are eligible.
4. Premature withdrawal: Find out how much early withdrawal could cost.
5. Interest payout: Choose between cumulative and periodic payout options.
6. Tax impact: Compare expected post-tax returns.
7. DICGC coverage: Remember the ₹5 lakh insurance ceiling per depositor per insured bank in the same right and capacity.
8. Current rate: Confirm the rate on the day you book the FD.

A 6.80% FD that you have to break early may ultimately earn less than a 6.50% FD whose tenure matches your goal.

How to Choose the Best RD in 2026

Start with the amount you can realistically save every month.

If ₹5,000 fits comfortably into your monthly budget, an RD can automate that saving habit. Do not commit to ₹15,000 simply to reach a larger maturity amount if you may struggle to make future instalments.

Compare:

• RD interest rate
• Monthly deposit requirement
• Deposit tenure
• Late instalment penalty
• Premature closure rules
• Senior citizen rate
• Expected maturity amount
• Tax treatment

The best RD is usually the one you can continue without interrupting contributions.

Should You Choose FD or RD in 2026?

Choose an FD if you already have a lump sum that you can set aside.

Choose an RD if you want to invest monthly from salary or other regular income.

For example, someone with ₹3 lakh available today may prefer an FD. Someone who wants to save ₹10,000 every month toward a holiday, education expense, or future purchase may find an RD more practical.

You can also use both. There is no rule that your savings must be entirely in FDs or entirely in RDs.

Is FD Laddering Worth Considering?

FD laddering means splitting your money into multiple fixed deposits with different maturity dates.

Suppose you have ₹6 lakh. Instead of putting the entire amount into one three-year FD, you could divide it into deposits that mature at different times.

This can help you:

• Access part of your money sooner
• Reduce the need to break one large FD
• Reinvest periodically at prevailing rates
• Avoid locking your entire corpus at one interest rate

Laddering can be particularly useful when you are unsure whether deposit rates will rise or fall.

FAQs on Bank FD and RD Interest Rates 2026

Key Takeaways

• Major bank FD rates covered in this 2026 comparison reach up to 6.80% for general customers and 7.30% for senior citizens.
• SBI’s highlighted 444-day FD rate is 6.45% for general customers and 6.95% for senior citizens.
• HDFC Bank offers retail FD rates up to 6.50% and 7.00% for general and senior citizens respectively.
• ICICI Bank offers up to 6.50% for general citizens and 7.10% for senior citizens on eligible FDs.
• PNB’s highlighted 444-day rate is 6.60% for general citizens, 7.10% for senior citizens and 7.40% for eligible super senior citizens.
• Kotak Mahindra Bank offers up to 6.80% for general citizens and 7.30% for senior citizens in its retail FD schedule for deposits below ₹3 crore.
• An FD is better suited to lump-sum savings, while an RD lets you invest regularly.
• DICGC covers eligible bank deposits up to ₹5 lakh per depositor per insured bank in the same right and capacity, including principal and interest.
• Do not choose a deposit based only on the highest interest rate. Compare tenure, tax, premature withdrawal conditions, and liquidity.
• Bank interest rates can change, so verify the applicable percentage directly with the bank before opening an FD or RD.