With many banks increasing fixed deposit interest rates, it's a good time to invest. However, consider the inflation rate and tax implications before making a decision.
As of April 2026, small finance banks are offering the highest interest rates on fixed deposits, with Suryoday Small Finance Bank offering 8.10% for a 30-month tenure.
Private banks, such as IDFC FIRST Bank, are offering interest rates of up to 7.40% for a 390-day tenure.
Public sector banks, like Punjab & Sind Bank, are offering interest rates of up to 6.75% for a 666-day tenure.
The RBI has maintained the Repo Rate steady at 5.25%, but banks are increasing interest rates to attract more deposits and compete with other fixed-income instruments.
Before investing in bank fixed deposits, consider the inflation rate and tax implications, as the interest rate on fixed deposits is taxed at the individual's slab rate.
