FD Rates Returns August 2026: Fixed deposits are still a popular choice for people who want steady returns without taking much risk. The money stays with the bank for a fixed period and earns interest at a set rate. But all banks do not offer the same FD rate. Rates can also change based on the deposit period. So, investors should check different banks before putting their money into an FD.
According to BankBazaar data cited in the report, DCB Bank, RBL Bank, YES Bank, Tamilnad Mercantile Bank and Jammu & Kashmir Bank are among the banks offering relatively high FD rates across different tenures. The data covers 16 banks and is based on rates available on the respective bank websites. BankBazaar’s current data also lists maximum regular-customer rates of around 7.20% for RBL Bank, 7.25% for YES Bank, 7.25% for Tamilnad Mercantile Bank and 7.30% for Jammu & Kashmir Bank.
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16 banks that offer top FD rates
| Bank | 6 months to <1 year | 1 to <2 years | 2 to <3 years | 3 to <5 years | 5 years and above |
|---|---|---|---|---|---|
| DCB Bank | 6.00–6.50% | 6.90–7.10% | 6.90–7.50% | 7.00–7.10% | 7.00–7.50% |
| Jammu & Kashmir Bank | 5.50–6.00% | 6.55–6.60% | 6.75–7.05% | 6.80% | 6.85% |
| YES Bank | 4.75–6.50% | 6.65–7.25% | 6.90–7.00% | 7.00% | 6.75% |
| RBL Bank | 4.75–6.05% | 7.00–7.20% | 7.20% | 7.00–7.20% | 6.70% |
| Tamilnad Mercantile Bank | 6.30–6.50% | 6.60–7.25% | 7.00% | 6.70% | 6.70% |
| IndusInd Bank | 5.75–6.25% | 6.75–6.90% | 7.00% | 6.65–7.00% | 6.50–6.65% |
| Dhanlaxmi Bank | 5.25–7.00% | 6.25–7.10% | 6.25–6.50% | 6.50–7.25% | 6.50–6.60% |
| Axis Bank | 5.50–5.75% | 6.25–6.50% | 6.50% | 6.50% | 6.50% |
| ICICI Bank | 4.50–5.50% | 6.25–6.30% | 6.30–6.45% | 6.45–6.50% | 6.50% |
| Federal Bank | 4.50–6.00% | 6.25–6.60% | 6.40% | 6.40–6.70% | 6.40% |
| Karur Vysya Bank | 6.00–7.00% | 6.55–7.20% | 6.55% | 6.55% | 6.25–6.55% |
| Kotak Mahindra Bank | 5.00–6.00% | 6.35–6.55% | 6.80% | 6.40% | 6.25% |
| Canara Bank | 5.25–5.50% | 6.25–6.60% | 6.25% | 6.25% | 6.25% |
| City Union Bank | 5.75–6.25% | 6.65–7.25% | 6.50% | 6.25–6.50% | 6.25% |
| HDFC Bank | 4.25–5.75% | 6.25–6.45% | 6.45% | 6.40–6.50% | 6.15–6.40% |
| Indian Overseas Bank | 4.50–5.50% | 6.40–6.60% | 6.40% | 6.10% | 6.10% |
Note: Interest rates are for fixed deposits up to ₹1 crore, as shown in the provided table.
DCB Bank And RBL Bank FD Rates
DCB Bank offers different rates depending on how long the money is kept in the FD. In the rate data provided for the report, deposits from six months to less than one year earned between 6% and 6.50%. For one year to less than two years, the rate was between 6.90% and 7.10%.
For deposits of two years to less than three years, the reported rate range was 6.90% to 7.50%. Deposits for three years to less than five years offered 7% to 7.10%. For five years and above, the rate was shown at 7% to 7.50%. BankBazaar’s latest listed DCB rates also show rates reaching 7.15% for some eligible tenures, so investors should check the bank’s current rate before booking an FD.
RBL Bank’s reported rates range from 4.75% to 6.05% for six months to less than one year. For one year to less than two years, the rate is between 7% and 7.20%. For two years to less than three years, the reported rate is 7.20%. Deposits between three years and less than five years can earn 7% to 7.20%, while deposits for five years or more earn 6.70%. BankBazaar also currently lists 7.20% as RBL Bank’s highest regular FD rate.
Do Not Choose an FD Only for the Highest Rate
A higher interest rate may look attractive, but it should not be the only thing investors check. The FD period is also important. Someone saving for a short-term need may not want to lock money away for many years.
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Tax is another factor. Interest earned from an FD is taxable according to the investor’s applicable tax rules. Inflation also matters because the real value of the money earned from an FD can be lower after rising prices.
FDs can still be useful for short- and medium-term goals because they offer predictable returns. Investors should compare rates, check the bank’s latest terms and choose a tenure that matches when they may need the money. Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank, including principal and interest, subject to the applicable rules.
