Fixed Deposits remain one of the safest investment options, providing guaranteed returns and capital protection for the investors. They are ideal for conservative investors who are looking for steady income.
FDs can act as a critical part of one's portfolio, providing predictable income and allowing flexibility over the preferred investment period. Indian lenders offer FDs with tenure as low as just seven days. The return earned on different FDs vary with tenure, with longer-term deposits usually offering higher interest rates.
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This still makes FDs a reliable investment option, offering safety and guaranteed returns. As a result, several banks have updated their FD interest rates in March 2026 to attract borrowers. Top lenders, including HDFC Bank, Yes Bank and Bandhan Bank, are offering competitive rates to attract investors. Suryoday Small Finance Bank is offering FDs with interest rates of up to 7.90% for general citizens.
Which Banks Have Revised Rates?
From March 6, HDFC Bank revised its FD rates for deposits under Rs 3 crore. The rates vary based on tenure, covering short-term deposits from seven to 14 days and long-term deposits up to 10 years.
For deposits of nine months and 1 day up to less than one year, the interest rate is 5.75%, the bank website shows. Deposits from two years, 11 months, and one day up to three years earn 6.45%. For tenures between four years, seven months, and one day up to five years, the rate is 6.40%. Long-term FDs of five years, one day to 10 years offer 6.15% interest.
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Yes Bank has also announced similar measures for FDs, effective from March 5. According to its website, one-year FDs under Rs 3 crore can earn 6.65% returns, while three-year FDs of similar value can earn 7% returns. Bandhan Bank is offering FDs at an interest rate of 7.25% per annum for a tenure of two years to less than three years.
Suryoday Small Finance Bank offers Fixed Deposits at 7.25% per annum for a one-year tenure. For long-term deposits of five years, it provides the highest rate of 7.90% per annum. These rates are effective from March 6, according to the lender's website.
Another bank that has notified revised FD rates in March is the Bank of India. According to the lender's website, for a one-year tenure, the interest rate is 6.25% per annum. It's special 450-day Star Swarnim FD offers the highest rate of 6.60% per annum.
Similarly, Axis Bank and ICICI Bank have also revised their fixed deposit rates from March 10. Axis Bank is currently offering an interest rate of 6.25% per annum on FDs with a tenure of one year to one year and 10 days. A similar rate is being offered by ICICI Bank for FDs with a tenure of one year to less than 18 months.
To be clear, the mentioned rates are applicable for regular citizens, but banks tend to offer slightly higher rates for senior citizens. Other top Indian lenders, including Bank of Maharashtra and State Bank of India, continue to offer the same rates as earlier.
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