Small Finance Banks lead the way with up to 8.60 per cent FD interest rates in April 2026
Public sector banks, meanwhile, are stuck in the 6.40-6.75 per cent band
When it comes to earning good amount on your savings, nothing beats like Fixed Deposits (FD), as this gives you an opportunity to earn decent amount in form of interest earned on your savings.
However, it is worth noting that FD interest rates differ from each bank and it becomes important for investors to choose the best bank which meets their long term investment goals.
Which banks offer attractive FD rates as of April
The current gap in FD interest rates between banks impact your finances. At present, Small Finance Banks are offering the highest FD interest rates in India, going up to 8.60 per cent per annum for general citizens.
Public sector banks, meanwhile, are stuck in the 6.40-6.75 per cent band. Let’s take a quick look at Small Finance Bank FD rates for April 2026:
| Bank | Duration | Maximum FD Interest Rate (%) |
| Unity Small Finance bank | 1001 days | 8.60 |
| Suryoday Small Finance Bank | 30-36 months | 8.40 |
| Shivalik Small Finance Bank | Chose durations | 8.30 |
| Utkarsh Small Finance Bank | 2-3 years | 8.25 |
| Jana Small Finance Bank | 3 years | 8 |
Interestingly, seniors citizens can get up to 8.75 per cent with a bank like Utkarsh since they receive an extra 0.50 per cent on top of all these rates.
Meanwhile, the current cap on public sector bank FD rates for exceptional tenures is between 6.70 and 6.75 per cent per annum; in general, this category remains in the low-return range. The current FD interest rates for government banks are as follows:
| Bank | Max Rate (General) (%) | Senior Citizen Rate (%) |
| Punjab & Sind Bank | Rs 6.75 | Rs 7.25 |
| Bank of India | Rs 6.70 | Rs 7.00 |
| Bank of Maharashtra | Rs 6.65 | Rs 7.15 |
| Punjab National Bank | Rs 6.60 | Rs 6.80 |
| Canara Bank | Up to 6.60 | Up to 7.00 |
| State Bank of India | 6.40 | 6.90 |
As of March 15, SBI FD interest rates for the general public range from 3.05 to 6.40 per cent annually. The ideal option at SBI is about 6.90 per cent as senior citizens receive an additional 0.50 per cent.
Canara Bank’s 444-day special offer is 6.50 per cent for regular customers and 7 per cent for senior citizens. For certain terms, Bank of India’s FD interest rates can exceed 6.70 per cent.
