Best FD rates March 2026: Up to 8.25% across small, private and PSU banks

Amid geopolitical tensions and stock market volatility, driven by the Iran–US and Russia–Ukraine conflicts, fixed deposits are back in focus for investors looking for stable returns. With interest rates varying across banks and tenures, the question many are asking is: which FD should you choose right now?

 

Data compiled by PaisaBazaar as of March 18, 2026 shows that small finance banks continue to offer the highest rates, followed by private lenders, while public sector banks remain more conservative.

 

Best FD rates as of March 18, 2026

 

Small finance banks

 

ESAF Small Finance Bank

Highest interest: 8.00% (501 days)

 

1-year: 4.75%

3-year: 6.00%

5-year: 5.75%

10-year: 5.75%

 

Jana Small Finance Bank

Highest interest: 8.25% (385 to 400 days)

1-year: 7.00%

3-year: 7.50%

5-year: 7.77%

10-year: 6.50%

 

Shivalik Small Finance Bank

Highest interest: 7.80% (21 months 1 day to 22 months)

1-year: 6.00%

3-year: 6.75%

5-year: 6.25%

10-year: 6.25%

 

Suryoday Small Finance Bank

Highest interest: 7.90% (5 years)

1-year: 7.25%

3-year: 7.25%

5-year: 7.90%

10-year: 7.25%

 

Private sector banks

 

Bandhan Bank

Highest interest: 7.25% (2 years to less than 3 years)

1-year: 7.00%

3-year: 7.00%

5-year: 5.85%

10-year: 5.85%

 

DCB Bank

Highest interest: 7.15% (60 months to 61 months)

1-year: 6.90%

3-year: 7.00%

5-year: 7.15%

10-year: 7.00%

 

Jammu & Kashmir Bank

Highest interest: 7.25% (888 days)

1-year: 6.75%

3-year: 6.65%

5-year: 6.60%

10-year: 6.60%

 

RBL Bank

Highest interest: 7.20% (18 months to 3 years)

1-year: 7.00%

3-year: 7.20%

5-year: 6.70%

10-year: 6.70%

 

SBM Bank India

Highest interest: 7.85% (391 days to 15 months)

1-year: 7.10%

3-year: 7.10%

5-year: 7.00%

10-year: 7.00%

 

Public sector banks

 

Bank of Maharashtra

Highest interest: 6.65% (400 days)

1-year: 6.20%

3-year: 5.25%

5-year: 5.00%

10-year: 5.00%

 

Indian Bank

Highest interest: 6.60% (444 days)

1-year: 6.10%

3-year: 6.05%

5-year: 6.00%

10-year: 6.00%

 

Indian Overseas Bank

Highest interest: 6.60% (444 days)

1-year: 6.50%

3-year: 6.10%

5-year: 6.10%

10-year: 6.10%

 

Punjab National Bank

Highest interest: 6.60% (444 days)

1-year: 6.25%

3-year: 6.30%

5-year: 6.10%

10-year: 6.00%

 

Union Bank of India

Highest interest: 6.60% (444 days)

1-year: 6.30%

3-year: 6.25%

5-year: 6.00%

10-year: 6.00%

 

SBI revises FD rates

 

State Bank of India has increased fixed deposit rates by 25 basis points for select tenures.

 

For deposits maturing between 46 days and 179 days, the rate has been raised from 5.10% to 5.35%. For tenures of 180 days to less than one year, the rate now stands at 5.85%, up from 5.60%. For deposits with a maturity of one year to less than two years, the rate has been revised from 6.25% to 6.50%.

 

For senior citizens, the rates have also been increased. Deposits maturing between 46 and 179 days now earn 5.85%, up from 5.60%. For tenures of 180 days to less than one year, the rate has gone up to 6.35% from 6.10%. For deposits with a maturity of one year to less than two years, the rate has been revised from 6.75% to 7%.

 

The revised rates apply to fresh deposits and renewals. Other terms remain unchanged.

 

How investors must approach FDs

 

Investors must not just look at the highest rate. They must spread deposits across different tenures to manage uncertainty around interest rate movements.

 

Common strategies include

 

• Breaking deposits across short, medium and long tenures

• Keeping some portion liquid through staggered maturities

• Mixing bank FDs with corporate deposits and government-backed schemes

• Aligning investments with time horizon and risk appetite

 

Siddharth Maurya, Founder and Managing Director, Vibhavangal Anukulakara Pvt Ltd, said a laddering approach can help manage changing rate cycles.

 

“You can consider FD laddering as a practical measure: divide your money among various periods so that not all the deposits grow at today’s lower rates, and at the same time, there are some maturities which are always coming up to get the better rates if the cycle turns. This way, senior citizens can also opt for a combination of bank FDs, a few corporate FDs, and small savings schemes to get a blend of safety and slightly higher yields rather than sticking to a single product,” said Maurya.

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