Fixed Deposit Rates Going Into 2026: SBI To HDFC Bank, Know Who Pays You More For Parking Cash

As the New Year 2026 approaches, fixed deposits (FDs) remain among the highly-trusted avenues for conservative investors who prefer safety and assured returns. FDs continue to hold their ground as the go-to option, especially for those investors seeking stability over volatility.

Banks across India have significantly adjusted their fixed deposit offerings post the Reserve Bank of India’s (RBI) recent rate cuts, making it important for people to reassess where they park their money. 

Multiple top Indian lenders, including the State Bank of India and HDFC Bank, have made changes in the interest rates of fixed deposits across tenures. This came after the central bank reduced the repo rate in its December monetary policy meeting, which makes borrowing cheaper for commercial banks across the country.

The RBI, in its recent policy review, brought repo rate to 5.25% after a reduction of 25 basis points. Aimed at stimulating economic growth, the RBI's decision will now help banks to borrow money at cheaper rates. However, a reduction in the repo rate further triggers a downward trend in fixed deposit interest rates. FDs become less attractive investment assets since banks don't need to attract more funds from investors.

Due to this, several banks have lowered the FD rates across multiple tenures.

1. State Bank of India

India's largest lender announced changes to interest rates from Dec. 15. At present, SBI is offering 6.25% returns on FDs between one year and less than two years. Also, customers can avail 6.40% returns on a tenure of two to less than three years. For senior citizens, SBI has set 6.75% returns on FDs between one year and two years and 6.90% on FDs between two years and less than three years.

2. HDFC Bank

From Dec. 17 onwards, HDFC Bank is offering 6.25% interest rate on an FD for a one-year tenure (1 Year to < 15 months). Similarly, customers get 6.35% interest for 15 months to less than 18 months and 6.45% for two years. Senior citizens can get 6.75% on an FD for a one-year tenure. They are provided 6.95% for two years.

3. Axis Bank

With effect from Dec. 26, customers get 6.25% interest rate for a one-year tenure and 6.45% for two years. For senior citizens, the bank offers 6.75% interest on a one-year FD tenure and 6.95% on two years.

4. Canara Bank

Canara Bank has revised its interest rates for FDs with a maturity period of 1 year to 15 months to 5.9%. For the same period, it is 6.40% for senior citizens.

5. ICICI Bank

Starting from Dec. 26, customers can avail 6.25% interest rate on FDs with maturity period of 1 year to less than 18 months and 6.6% for 2 years and 1 day to 5 years. For senior citizens, it is 6.75% for 1 year to less than 18 months and 7.2% for 2 years and 1 day to 5 years period.

6. Bank of Baroda

This bank is offering 6.25% interest on FD with maturity period of one year and 6.50% on above two years and up to three years. Senior citizens will get 6.75% and 7% during these time periods.

7. Kotak Mahindra Bank

Starting from Dec. 5, Kotak Mahindra Bank offers 6.25% interest rate on FDs from 365 days to 389 days (6.75% for senior citizens) and 6.4% for two years to less than three years (6.90% for senior citizens).

To be clear, all the above-mentioned interest rates are for less than Rs 3 crore.

Disclaimer: To find the latest FD rates, it’s advisable to check the Fixed Deposit section on the official websites of the respective banks. Rates are subject to change without notice, and the rates provided in the table are per the latest updates as of December 27, 2025.