FD Rates Compared: Big Banks, Small Finance Banks and Corporate FDs (October 2026)
Last updated: 13 October 2026
Quick answer: As of 13 October 2026, FD rates at the big banks are 6.25-6.50% for one to three years, with about 0.50% extra for senior citizens. Small finance banks pay 7.00-8.00% on similar tenures, and corporate deposits from Bajaj Finance and Shriram Finance pay up to 7.75-7.85%. Higher rates come with smaller lenders or, for NBFCs, no DICGC insurance.
Last updated: 13 October 2026 Quick answer: As of 13 October 2026, FD rates at the big banks are 6.25-6.50% for one to three years, with about 0.50% extra for senior citizens. Small finance banks pay 7.00-8.00% on similar tenures, and corporate deposits from Bajaj Finance and Shriram Finance pay up to 7.75-7.85%. Higher rates come with smaller lenders or, for NBFCs, no DICGC insurance. Key takeaways Big banks: SBI 6.40% (2-3 years), ICICI and HDFC 6.45%, Axis 6.50% for 3 years. Small finance banks: AU 7.40% (30-36 months), Utkarsh 7.50%, Jana 8.00% for 3 years. Corporate FDs: Bajaj Finance 7.75% (31-60 months, raised 7 Oct); Shriram 7.85% (36-60 months, from 11 Oct). Safety: bank and SFB deposits are insured up to ₹5 lakh per bank by DICGC; NBFC deposits are not. After the hike: NBFCs have raised rates; most big banks have not yet. Two savers walk into a bank in Pune this week with ₹5 lakh each. One books a 3-year FD at 6.40%; the other books one at a small finance bank across the road at 8.00%. Three years later, the second saver has about ₹29,000 more before tax. Is that free money, or payment for a risk? This guide compares FD rates across the three kinds of lenders Indian savers use: large banks, small finance banks (SFBs) and corporate FDs from non-banking finance companies (NBFCs). All rates are card rates for the general public on deposits below ₹3 crore, collected between 7 and 13 October 2026, just after the RBI's 7 October repo rate hike to 5.50%. Rates change frequently, so always confirm on the lender's site before you book. What are the latest FD rates in October 2026? A fixed deposit (FD) is a deposit that pays a fixed rate for an agreed term, with a penalty if you withdraw early. The table shows the rates most savers compare: one year, about three years, and the best senior citizen rate. Lender 1 year ~3 years Best general rate Best senior rate Rate source and date SBI 6.25% 6.40% (2-3 yrs) 6.45% (444-day Amrit Vrishti) 7.05% (5-10 yrs) SBI site; card from 15 Dec 2025 Punjab National Bank 6.25% 6.30% 6.60% (444 days) 7.10% (444 days) PNB site; from 1 Jun 2026 HDFC Bank 6.25% 6.45% 6.50% Up to 7.10% Aggregator data, 7 Oct 2026 ICICI Bank 6.25% 6.45% 6.50% (3-10 yrs) 7.10% (3-5 yrs) ICICI site; card dated 13 Oct 2026 Axis Bank 6.25% 6.50% 6.50% Check bank site Aggregator data, 7 Oct 2026 Kotak Mahindra Bank 6.50% 6.40% 6.65% Check bank site Aggregator data, 7 Oct 2026 Among the large banks, the spread is remarkably tight: almost everyone is between 6.25% and 6.50% for one to three years. The real differences sit in special tenure buckets, such as SBI's 444-day Amrit Vrishti deposit or PNB's 444-day and 666-day buckets. Small finance bank FD rates, October 2026 Small finance bank 1 year 3 years Highest general rate Senior add-on AU Small Finance Bank 6.35% (6-12 m); 7.10% (12-15 m) 7.40% (30-36 m) 7.40% +0.50% Jana Small Finance Bank 7.00% 8.00% 8.00% +0.50% Utkarsh Small Finance Bank 6.00% 7.50% 8.10% +0.50% Suryoday Small Finance Bank 7.25% 7.25% 8.25% (5 yrs) +0.15% Equitas Small Finance Bank 7.10% 7.10% 8.00% +0.50% Ujjivan Small Finance Bank 7.25% 7.25% 7.80% +0.50% Unity Small Finance Bank 7.50% 6.75% 7.50% +0.50% AU's rates are from its own website (general card from 1 September 2026); the others are aggregator data as of 7 October 2026. SFBs pay 0.75-1.50% more than big banks, partly because they lend to riskier borrowers such as microfinance customers and small businesses, and partly because they need to attract depositors away from established names. Corporate FD rates: Bajaj Finance and Shriram Finance NBFC 12-17 months 18-35 months 36-60 months Senior add-on Revised Bajaj Finance 6.80% (12-17 m) 7.00% (18-30 m) 7.75% (31-60 m) Up to 8.15% total 7 Oct 2026 Shriram Finance (cumulative) 7.00% (12 m) 7.25-7.50% 7.85% +0.50%; women +0.05% 11 Oct 2026 Bar chart of FD rates in October 2026 for SBI, PNB, ICICI, HDFC, Axis, AU, Utkarsh and Jana small finance banks, Bajaj Finance and Shriram Finance Have FD rates gone up after the RBI repo rate hike? Only in pockets. Bajaj Finance raised deposit rates by up to 0.40% within hours of the 7 October decision, and Shriram Finance revised its card from 11 October. ICICI Bank published a fresh card dated 13 October, but its top general rate is still 6.50%. SBI's card has not changed since December 2025. SBI chairman C.S. Setty said on 8 October that he does not expect banks to raise deposit rates for two to three months, because liquidity is comfortable. That is typical. When a central bank raises rates, banks pass increases to borrowers faster than to depositors; the share passed on to savers is called the "deposit beta". Expect Indian cards to move in steps over the next few months, faster if the RBI hikes again on 4 December. Should you wait for better rates? We work through the break-even maths in lock in FDs now or wait for December (/insights/lock-in-fd-now-or-wait-rate-hike-2026) ; the short version is that a ladder of 1-, 2- and 3-year deposits usually beats trying to time the peak. The October repo rate hike explainer (/insights/rbi-repo-rate-hike-october-2026-emi-fd-debt-funds) covers the policy itself. How much more do you earn at a small finance bank? Here is what ₹5 lakh earns in a 3-year cumulative FD with quarterly compounding, before tax and after tax at the top slab of 31.2% (30% plus cess). Lender and rate Maturity value Interest earned Post-tax interest (31.2%) SBI, 6.40% ₹6,04,915 ₹1,04,915 ₹72,182 ICICI Bank, 6.45% ₹6,05,809 ₹1,05,809 ₹72,797 AU SFB, 7.40% ₹6,23,021 ₹1,23,021 ₹84,638 Jana SFB, 8.00% ₹6,34,121 ₹1,34,121 ₹92,275 The gap between SBI and Jana is about ₹29,000 before tax and ₹20,000 after tax over three years on ₹5 lakh. That is meaningful, but it is not life-changing, and it should be weighed against the lower comfort of a smaller lender. You can run your own numbers with our FD calculator guide (/insights/fd-calculator-cumulative-vs-payout-tds) . Chart comparing pre-tax and post-tax interest on a ₹5 lakh 3-year FD at SBI, ICICI, AU and Jana small finance banks Are small finance bank and corporate FDs safe? Safety differs sharply between the three types, and the rate gap is largely a price for that difference. Banks and small finance banks. All scheduled commercial banks, including SFBs, are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary. Each depositor is covered up to ₹5 lakh per bank, including interest, across all branches and in the same capacity. If the RBI restricts a bank, DICGC's rules require insured depositors to be paid within 90 days. DICGC made such payments for several co-operative banks in August-October 2026, which shows the mechanism works. Corporate FDs. Deposits with NBFCs such as Bajaj Finance and Shriram Finance are not insured by DICGC. Their safety depends on the company's financial strength, which is why credit ratings matter. Shriram's own page notes that the RBI does not guarantee repayment of its deposits. Large, highly rated NBFCs have a good record, but rating downgrades and defaults among NBFCs (IL&FS and DHFL in 2018-19) are a reminder that "high rating" is not the same as "guaranteed". India's ₹5 lakh insurance limit is lower than in many developed markets. The US FDIC covers $2,50,000 per depositor per bank per ownership category, and the UK's FSCS raised its cover to £1,20,000 from December 2025. The practical lesson is the same everywhere: spread large balances across institutions. For a closer look at SFB risk, see our guide on small finance bank FDs and the ₹5 lakh DICGC cover (/insights/small-finance-bank-fd-dicgc-insurance) . Comparison of large bank, small finance bank and corporate fixed deposits on rate, insurance and risk What are the best FD rates for senior citizens in October 2026? Most banks add 0.50% for depositors aged 60 and above; SBI adds 0.10% more for those over 80, and SBI's 5-10 year senior rate includes a further "We-care" premium. Shriram Finance adds 0.50% for seniors and 0.05% for women. Option for seniors Rate (as of October 2026) Insured? SBI senior FD (5-10 years) 7.05% DICGC up to ₹5 lakh ICICI / HDFC senior FD (best) 7.10% DICGC up to ₹5 lakh AU SFB senior FD (30-36 months) 7.90% DICGC up to ₹5 lakh Shriram Finance senior (36-60 months) 8.35% No Senior Citizens' Savings Scheme (SCSS) 8.2%, Oct-Dec 2026 Government-backed The government's Senior Citizens' Savings Scheme still beats every large-bank FD for seniors at 8.2%, unchanged for October-December 2026, with a ₹30 lakh limit and quarterly payouts. Retirees usually fill SCSS first and use FDs for the rest. Our comparison of senior citizen FDs, SCSS and RBI Floating Rate Bonds (/insights/senior-citizen-fd-vs-scss-vs-rbi-floating-rate-bonds) goes deeper, and small savings rates for October-December 2026 (/insights/small-savings-interest-rates-oct-dec-2026) lists every scheme. How are FD returns taxed, and when is TDS deducted? FD interest is taxed at your slab rate, every year it accrues, whether you receive it or not. Banks deduct TDS at 10% when your interest from that bank crosses ₹50,000 in a tax year, or ₹1 lakh for senior citizens; those limits were raised from April 2025. From tax year 2026-27, under the Income-tax Act, 2025, the declaration to avoid TDS when your total tax is nil is Form 121, which replaced Forms 15G and 15H. At a 31.2% marginal rate, a 6.50% FD yields 4.47% after tax; at 8.00% it yields 5.50%. With CPI inflation at 4.8% in August 2026, a high-bracket saver earns very little in real terms from any FD. That is why many compare FDs with debt mutual funds, which are also taxed at slab rate but only on redemption; see FD vs debt mutual funds after tax (/insights/fixed-deposit-vs-debt-mutual-funds-which-gives-better-post-tax-returns-now) . How to choose an FD: a five-point checklist Match the tenure to the goal. Do not lock school-fee money into a 5-year deposit for an extra 0.20%. Look at special buckets. Odd tenures (444 days, 30-36 months) often carry the best card rate. Respect the ₹5 lakh insurance line. Spread larger amounts across banks. Check the premature-withdrawal penalty. It is typically 0.50-1% off the applicable rate, and non-callable deposits cannot be broken at all. Think post-tax. Compare FDs with SCSS, RBI bonds and debt funds on what you keep. Five checks before booking a fixed deposit: tenure, insurance, exit penalty, payout and TDS FDs remain the right tool for emergency money, near-term goals and income for conservative investors. For a broader fixed-income mix, our bonds desk (/products/bonds) and the Bonds 101 guide (/insights/bonds-101-india) explain the alternatives. Related reading Lock in FDs now or wait for December's RBI policy? (/insights/lock-in-fd-now-or-wait-rate-hike-2026) FD calculator: cumulative vs payout, and how TDS works (/insights/fd-calculator-cumulative-vs-payout-tds) Small finance bank FDs and the ₹5 lakh DICGC cover (/insights/small-finance-bank-fd-dicgc-insurance) Emergency fund: how much and where to keep it (/insights/emergency-fund-guide-india) Senior citizen tax planning: interest, pension and rent (/insights/senior-citizen-tax-planning-interest-pension-rent) Frequently Asked Questions Which bank gives the highest FD rate in October 2026? Among large banks, the best general rates are about 6.50-6.65% (Axis, ICICI, Kotak, and PNB's 444-day bucket at 6.60%). Small finance banks pay more: Jana offers 8.00% for three years and Suryoday up to 8.25% for five years, per aggregator data of 7 October 2026. Rates change often, so confirm on the bank's website. What is SBI's FD rate for 1 year in October 2026? SBI pays 6.25% for the general public and 6.75% for senior citizens on deposits of 1 year to less than 2 years, below ₹3 crore. Its 444-day Amrit Vrishti deposit pays 6.45%. This card has applied since 15 December 2025, and SBI had not revised it after the October 2026 repo hike. Are small finance bank FDs safe in India? Small finance banks are RBI-licensed scheduled banks, and their deposits carry the same DICGC insurance as large banks: up to ₹5 lakh per depositor per bank, including interest. The risk above ₹5 lakh is higher than at a large bank because their loan books are smaller and riskier. Keeping each deposit within the insured limit is sensible. Are Bajaj Finance and Shriram Finance FDs insured? No. Corporate FDs from NBFCs are not covered by DICGC deposit insurance. Their safety rests on the company's credit quality. Both are large, highly rated lenders, but a corporate FD is a different risk from a bank deposit. Many investors cap NBFC deposits at a modest share of their fixed-income money. Will FD rates rise further in 2026? Possibly. The RBI raised the repo rate to 5.50% on 7 October 2026 and shifted to "calibrated tightening". NBFCs raised rates at once, but SBI's chairman expects banks to wait two to three months. Another hike at the 2-4 December policy would add pressure on banks to raise deposit rates. Do senior citizens get higher FD rates? Yes. Most banks and SFBs add 0.50% for resident depositors aged 60 and above; Suryoday adds 0.15%. SBI gives a further 0.10% to those 80 and above. The Senior Citizens' Savings Scheme at 8.2% still pays more than any large-bank senior FD in October 2026. Is FD interest taxable? Yes. FD interest is fully taxable at your income-tax slab rate in the year it accrues. Banks deduct 10% TDS once annual interest per bank exceeds ₹50,000, or ₹1 lakh for senior citizens. If your total tax is nil, you can submit Form 121, which replaced Forms 15G and 15H from tax year 2026-27. Sources: SBI deposit rates (https://sbi.bank.in/web/interest-rates/deposit-rates/retail-domestic-term-deposits) ; PNB deposit rates (https://www.pnb.bank.in/Interest-Rates-Deposit.html) ; ICICI Bank FD rates (https://www.icici.bank.in/personal-banking/deposits/fixed-deposit/fd-interest-rates) ; AU Small Finance Bank FD rates (https://www.au.bank.in/interest-rates/fixed-deposit-interest-rates) ; Shriram Finance FD (https://www.shriramfinance.in/fixed-deposit) ; Goodreturns, Bajaj Finance revision (7 Oct 2026) (https://www.goodreturns.in/personal-finance/rbi-repo-rate-banks-nbfcs-to-hike-fd-interest-rates-by-25-bps-sbi-hdfc-icici-bajaj-finance-fd-rates-1539733.html) ; Paisabazaar FD rates (7 Oct 2026) (https://www.paisabazaar.com/fixed-deposit/) ; DICGC (https://www.dicgc.org.in/guide-to-deposit-insurance) ; Form 121 FAQs, Income Tax Department (https://www.incometaxindia.gov.in/documents/d/guest/form-121-faqs) ; FDIC (https://www.fdic.gov/resources/deposit-insurance) . Worked examples are Money n Wealth calculations. Want help spreading deposits across banks, SCSS and bonds? The right split depends on your tax slab, income needs and how much safety you want. Talk to Money n Wealth (/contact) for a free portfolio review. This article is for general educational purposes only and does not constitute financial advice. Figures and examples are illustrative. Please consult a qualified financial adviser for guidance specific to your situation. Money n Wealth (Predics Fintech Services Pvt Ltd) is an AMFI-registered Mutual Fund Distributor (ARN-121995) and APMI-registered PMS Distributor (APRN07444); it is not a SEBI-registered investment adviser and may earn distribution commission on investments made through it.
Frequently Asked Questions
Which bank gives the highest FD rate in October 2026?
Among large banks, the best general rates are about 6.50-6.65% (Axis, ICICI, Kotak, and PNB's 444-day bucket at 6.60%). Small finance banks pay more: Jana offers 8.00% for three years and Suryoday up to 8.25% for five years, per aggregator data of 7 October 2026. Rates change often, so confirm on the bank's website.
What is SBI's FD rate for 1 year in October 2026?
SBI pays 6.25% for the general public and 6.75% for senior citizens on deposits of 1 year to less than 2 years, below ₹3 crore. Its 444-day Amrit Vrishti deposit pays 6.45%. This card has applied since 15 December 2025, and SBI had not revised it after the October 2026 repo hike.
Are small finance bank FDs safe in India?
Small finance banks are RBI-licensed scheduled banks, and their deposits carry the same DICGC insurance as large banks: up to ₹5 lakh per depositor per bank, including interest. The risk above ₹5 lakh is higher than at a large bank because their loan books are smaller and riskier. Keeping each deposit within the insured limit is sensible.
Are Bajaj Finance and Shriram Finance FDs insured?
No. Corporate FDs from NBFCs are not covered by DICGC deposit insurance. Their safety rests on the company's credit quality. Both are large, highly rated lenders, but a corporate FD is a different risk from a bank deposit. Many investors cap NBFC deposits at a modest share of their fixed-income money.
Will FD rates rise further in 2026?
Possibly. The RBI raised the repo rate to 5.50% on 7 October 2026 and shifted to "calibrated tightening". NBFCs raised rates at once, but SBI's chairman expects banks to wait two to three months. Another hike at the 2-4 December policy would add pressure on banks to raise deposit rates.
Do senior citizens get higher FD rates?
Yes. Most banks and SFBs add 0.50% for resident depositors aged 60 and above; Suryoday adds 0.15%. SBI gives a further 0.10% to those 80 and above. The Senior Citizens' Savings Scheme at 8.2% still pays more than any large-bank senior FD in October 2026.
Is FD interest taxable?
Yes. FD interest is fully taxable at your income-tax slab rate in the year it accrues. Banks deduct 10% TDS once annual interest per bank exceeds ₹50,000, or ₹1 lakh for senior citizens. If your total tax is nil, you can submit Form 121, which replaced Forms 15G and 15H from tax year 2026-27.
Want help spreading deposits across banks, SCSS and bonds?
The right split depends on your tax slab, income needs and how much safety you want. Talk to Money n Wealth for a free portfolio review.