Amid market volatility, fixed deposits (FDs) remain a good option for investors. The country’s banking sector is offering good interest rates on FDs in June 2026. Some banks are offering their customers up to 8.10 per cebt annual interest on FDs. Therefore, it is important to check interest rates across different banks before making a final decision on your fixed deposit. SBI, HDFC Bank, ICICI Bank, and PNB are among the most preferred banks by investors for fixed deposits. However, many private and small finance banks are offering more attractive interest rates than the major banks.
Interest rates offered by public sector banks
Among public sector banks, Punjab & Sind Bank currently offers the most benefits to its customers. It is offering 6.75 per cent interest on a 666-day special FD. Similarly, Bank of India (BoI) is offering 6.70 per cent annual interest on a three-year FD and Union Bank, Bank of Maharashtra, and Central Bank of India are offering 6.65 per cent interest for select tenures. Canara Bank, Indian Bank, Indian Overseas Bank, and PNB are offering interest rates of 6.60 per cent. The State Bank of India (SBI) is offering 6.45 per cent interest under its 444-day “Amrit Vrishti” scheme.
Which private bank offers the highest interest rates?
Among private-sector banks, smaller banks are offering higher profits than larger, well-known banks. In the private sector, DCB Bank currently offers the highest interest rates. The bank is offering 7.50 per cent interest for FDs of 24 to 25 months. CSB Bank offers up to 7.35 per cent interest for 18-month periods. SBM Bank India offers up to 7.30 per cent returns. Bandhan Bank and IDFC First Bank offer 7.25 per cent interest on select tenures. RBL Bank offers a maximum interest rate of 7.20 per cent. HDFC Bank and ICICI Bank offer a maximum interest rate of 6.50 per cent.
Here’s how much foreign banks are offering
There’s a wide variation in the interest rates offered by foreign banks operating in India. Deutsche Bank offers an interest rate of 7 per cent on FDs with maturities of more than one year and less than two years. Standard Chartered Bank is offering 6.60 per cent interest on FDs ranging from 1 year to 376 days. HSBC Bank, on the other hand, offers a maximum interest rate of 5.50 per cent for select periods.
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