SBI Vs HDFC Vs ICICI Vs Yes Bank: Which Fixed Deposit Pays Highest Interest In May 2026?

Despite the growing buzz around stocks, mutual funds and SIPs, fixed deposits (FD) have not lost their relevance. They continue to matter for conservative investors who prefer safety over risk. Even for investors with higher risk appetite, FDs can offer stability to the portfolio via diversification.

FDs also give guaranteed returns, which remain their biggest strength. Backed by banks, they serve as a predictable income option. While market-linked investments can deliver higher returns, they also come with volatility.

Fixed deposits, on the other hand, offer peace of mind and capital protection. While FDs have a reputation of offering lower returns, some banks tend to provide significant interest rates on this financial product for certain tenures. Investors should remain updated with the latest interest rate trends by top banks to ensure that they can maximize their investment potential.

The State Bank of India, HDFC Bank, ICICI Bank and Yes Bank are prominent players in the fixed deposit market. SBI is a public sector bank, while the others are private banks. All these banks offer competitive FD interest rates for certain tenures, attracting a wide range of investors.

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SBI May FD Rates:

1 Year to less than 2 years - 6.25%

2 years to less than 3 years - 6.40%

3 years to less than 5 years - 6.30%

These rates are applicable for regular citizens for deposits worth under Rs 3 crore. The bank offers slightly higher rates for senior citizens.

HDFC Bank May FD Rates:

1 year to under 15 months - 6.25%

18 months to under 3 years - 6.45%

3 years 1 day to under 5 years - 6.40%

These rates are applicable for deposits under Rs 3 crore. Senior citizens can avail slightly higher interest rates across tenures.

ICICI FD Rates May 2026:

1 year to under 18 months - 6.25%

2 years 1 day to 3 years - 6.45%

3 years 1 day to 10 years - 6.5%

Yes Bank FD Rates May 2026:

336 days to under 12 months - 6.50%

12 months 1 day to 18 months - 6.75%

18 months 1 day to 5 years - 7%

For ICICI Bank and Yes Bank as well, the rates are applicable for regular citizens and deposits are capped at Rs 3 crore. Deposits above this value are treated separately by most banks. Customers who wish to open FDs in these banks can visit their website or local branches. Most of them also offer a convenient, few-step process to open FDs online.

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