FD Rates 2026: Fixed deposits are still a simple choice for people who want steady money and do not like big market ups and downs. Current bank pages show that rates are still moving in a wide band. SBI’s deposit page shows 7.05% for the 2-year to less-than-3-year bucket, and IDFC FIRST Bank says its FD rates can go up to 7.25% p.a. for some tenures.
IDFC FIRST Bank also says senior citizens get higher FD rates. Its pages also show that customers can choose monthly payout, quarterly payout, or quarterly compounding, while SBI says interest on a term deposit can be paid quarterly or at maturity, with monthly, half-yearly, or yearly options for some deposits.
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How ₹1 lakh, ₹5 lakh and ₹10 lakh can grow
Using the current rate band shown on bank pages and simple quarterly compounding, the money can grow in a slow but steady way.
₹1 lakh FD
- A ₹1 lakh FD can become about ₹1.21 lakh to ₹1.24 lakh in 3 years.
- In 5 years it can rise to around ₹1.35 lakh to ₹1.42 lakh.
- In 10 years it may reach roughly ₹1.81 lakh to ₹1.82 lakh.
₹5 lakh FD:
- A ₹5 lakh FD may move to about ₹6.03 lakh to ₹6.20 lakh in 3 years,
- In 5 years it can rise to around ₹6.75 lakh to ₹7.11 lakh
- In 10 years it may reach roughly ₹9.07 lakh to ₹9.11 lakh
₹10 lakh FD
- A ₹10 lakh FD may grow to about ₹12.06 lakh to ₹12.41 lakh in 3 years
- In 5 years it can rise to around ₹13.50 lakh to ₹14.22 lakh
- In 10 years it may reach roughly ₹18.14 lakh to ₹18.23 lakh
These are only estimates, because the final amount changes with the bank, the tenure, and the payout method.
What happens when the FD Matures
FD interest is taxed under “Income from Other Sources”. A 5-year tax-saving FD can also help under Section 80C if the old tax regime is used, and the total 80C limit is ₹1.5 lakh. For senior citizens, the Income Tax Department says Section 80TTB allows a deduction of up to ₹50,000 on interest from bank, post office, or co-operative bank deposits.
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It also says no TDS is deducted on interest up to ₹50,000 for a senior citizen, and that limit is counted separately for each bank. The tax department’s TDS chart shows Section 194A interest is taxed at 10%, and SBI’s tax-saver FD page says Form 15G/15H can be used for tax deduction exemption when the depositor is eligible.
