Looking for the best FD? These banks are offering up to 8.10% interest in July 2026
Fixed deposit investors can now earn up to 8.10% interest as several small finance banks continue to outpace private and public sector lenders. Here's a comparison of the latest FD rates across banks as of July 8, 2026, to help you choose the best option for your savings.
- Jul 9, 2026,
- Updated Jul 9, 2026 6:20 AM IST
Fixed deposits (FDs) continue to remain one of the most preferred investment options for conservative investors seeking guaranteed returns amid market volatility. While large public sector banks continue to offer FD rates in the range of 6.45% to 6.85% per annum, several small finance banks and select private sector lenders are offering significantly higher returns, with interest rates going up to 8.10% per annum.
According to the latest interest rates as of July 8, 2026, Suryoday Small Finance Bank and Utkarsh Small Finance Bank are offering the highest FD interest rate of 8.10% per annum for general customers. They are followed by Shivalik Small Finance Bank, Equitas Small Finance Bank, and Jana Small Finance Bank, each offering up to 8.00% per annum on select tenures.
Small finance banks
Small finance banks continue to lead the fixed deposit market by offering the most competitive interest rates.
Apart from the top five banks, Ujjivan Small Finance Bank offers up to 7.80%, while ESAF Small Finance Bank offers 7.75%. AU Small Finance Bank provides returns of up to 7.40%, and Capital Small Finance Bank offers 7.15% on select FD tenures.
These banks are increasingly attracting investors looking for higher returns, although depositors should keep deposit insurance limits and individual bank credit profiles in mind before investing.
Private banks
Among private sector lenders, DCB Bank tops the list with an FD rate of 7.50%, followed by Bandhan Bank at 7.45%.
CSB Bank and IDFC FIRST Bank offer up to 7.35%, while SBM Bank provides 7.30%. YES Bank offers 7.25%, RBL Bank provides 7.20%, and IndusInd Bank offers up to 7.00%.
Among other private banks, Tamilnad Mercantile Bank and City Union Bank offer rates of 7.25%, while Karnataka Bank offers up to 7.00%. Federal Bank, Kotak Mahindra Bank, DBS Bank, South Indian Bank, Karur Vysya Bank, ICICI Bank, IDBI Bank, and Nainital Bank offer interest rates ranging between 6.50% and 6.85%.
Highest Fixed Deposit (FD) Interest Rates Across Banks (As of July 8, 2026)
| Bank | Bank Category | Highest FD Rate (% p.a.) | 1-Year FD | 3-Year FD | 5-Year FD |
|---|---|---|---|---|---|
| Suryoday Small Finance Bank | Small Finance Bank | 8.10% | 7.25% | 7.25% | 7.90% |
| Utkarsh Small Finance Bank | Small Finance Bank | 8.10% | 6.00% | 7.50% | 7.00% |
| Shivalik Small Finance Bank | Small Finance Bank | 8.00% | 6.00% | 7.50% | 6.25% |
| Equitas Small Finance Bank | Small Finance Bank | 8.00% | 7.10% | 7.10% | 7.00% |
| Jana Small Finance Bank | Small Finance Bank | 8.00% | 7.00% | 8.00% | 7.77% |
| Ujjivan Small Finance Bank | Small Finance Bank | 7.80% | 7.25% | 7.25% | 7.20% |
| ESAF Small Finance Bank | Small Finance Bank | 7.75% | 4.75% | 6.00% | 5.75% |
| DCB Bank | Private Bank | 7.50% | 6.90% | 7.00% | 7.50% |
| Bandhan Bank | Private Bank | 7.45% | 7.00% | 7.00% | 5.85% |
| AU Small Finance Bank | Small Finance Bank | 7.40% | 6.35% | 7.40% | 6.75% |
| CSB Bank | Private Bank | 7.35% | 5.00% | 5.75% | 5.75% |
| IDFC FIRST Bank | Private Bank | 7.35% | 6.50% | 7.35% | 6.75% |
| Jammu & Kashmir Bank | Private Bank | 7.30% | 6.80% | 6.70% | 6.75% |
| SBM Bank | Private Bank | 7.30% | 7.10% | 7.10% | 7.00% |
| Dhanlaxmi Bank | Private Bank | 7.25% | 6.25% | 6.50% | 6.50% |
| YES Bank | Private Bank | 7.25% | 6.65% | 7.00% | 6.75% |
| RBL Bank | Private Bank | 7.20% | 7.00% | 7.20% | 6.70% |
| Capital Small Finance Bank | Small Finance Bank | 7.15% | 7.00% | 7.00% | 6.90% |
| IndusInd Bank | Private Bank | 7.00% | 6.75% | 7.00% | 6.65% |
| Bank of India | Public Sector Bank | 6.85% | 6.50% | 6.70% | 6.00% |
| Punjab & Sind Bank | Public Sector Bank | 6.85% | 5.85% | 5.85% | 5.95% |
| Indian Bank | Public Sector Bank | 6.80% | 6.10% | 6.05% | 6.00% |
| Bank of Baroda | Public Sector Bank | 6.75% | 6.25% | 6.25% | 6.30% |
| Central Bank of India | Public Sector Bank | 6.70% | 6.10% | 6.00% | 6.00% |
| State Bank of India (SBI) | Public Sector Bank | 6.45% | 6.25% | 6.30% | 6.05% |
MUST READ: HDFC Bank vs ICICI Bank FD rates: Which bank offers better returns in 2026?
Public sector banks
Public sector banks continue to offer relatively lower FD rates but remain a preferred choice for investors prioritising stability and a wide branch network.
Among PSU banks, Bank of India and Punjab & Sind Bank offer the highest rate of 6.85%. They are followed by Indian Bank at 6.80%, Bank of Baroda at 6.75%, Central Bank of India at 6.70%, and Bank of Maharashtra at 6.65%.
Canara Bank, Indian Overseas Bank, and UCO Bank each offer up to 6.60%, while State Bank of India (SBI) offers a maximum FD interest rate of 6.45% for general customers.
Choosing the right FD
While higher interest rates can significantly improve returns, investors should also consider factors such as the bank's financial strength, deposit tenure, liquidity needs, premature withdrawal penalties, and deposit insurance coverage before investing.
MUST READ: SBI vs PNB FD rates: Which public sector bank offers better fixed deposit returns in 2026?
For those seeking the highest returns, small finance banks currently offer the most attractive rates. However, investors looking for greater institutional stability may continue to prefer established private or public sector banks, even if it means accepting slightly lower returns.
With interest rates remaining elevated, July 2026 presents an opportunity for investors to lock in attractive FD rates across a wide range of banks before any future policy-driven rate changes.
Fixed deposits (FDs) continue to remain one of the most preferred investment options for conservative investors seeking guaranteed returns amid market volatility. While large public sector banks continue to offer FD rates in the range of 6.45% to 6.85% per annum, several small finance banks and select private sector lenders are offering significantly higher returns, with interest rates going up to 8.10% per annum.
According to the latest interest rates as of July 8, 2026, Suryoday Small Finance Bank and Utkarsh Small Finance Bank are offering the highest FD interest rate of 8.10% per annum for general customers. They are followed by Shivalik Small Finance Bank, Equitas Small Finance Bank, and Jana Small Finance Bank, each offering up to 8.00% per annum on select tenures.
Small finance banks
Small finance banks continue to lead the fixed deposit market by offering the most competitive interest rates.
Apart from the top five banks, Ujjivan Small Finance Bank offers up to 7.80%, while ESAF Small Finance Bank offers 7.75%. AU Small Finance Bank provides returns of up to 7.40%, and Capital Small Finance Bank offers 7.15% on select FD tenures.
These banks are increasingly attracting investors looking for higher returns, although depositors should keep deposit insurance limits and individual bank credit profiles in mind before investing.
Private banks
Among private sector lenders, DCB Bank tops the list with an FD rate of 7.50%, followed by Bandhan Bank at 7.45%.
CSB Bank and IDFC FIRST Bank offer up to 7.35%, while SBM Bank provides 7.30%. YES Bank offers 7.25%, RBL Bank provides 7.20%, and IndusInd Bank offers up to 7.00%.
Among other private banks, Tamilnad Mercantile Bank and City Union Bank offer rates of 7.25%, while Karnataka Bank offers up to 7.00%. Federal Bank, Kotak Mahindra Bank, DBS Bank, South Indian Bank, Karur Vysya Bank, ICICI Bank, IDBI Bank, and Nainital Bank offer interest rates ranging between 6.50% and 6.85%.
Highest Fixed Deposit (FD) Interest Rates Across Banks (As of July 8, 2026)
| Bank | Bank Category | Highest FD Rate (% p.a.) | 1-Year FD | 3-Year FD | 5-Year FD |
|---|---|---|---|---|---|
| Suryoday Small Finance Bank | Small Finance Bank | 8.10% | 7.25% | 7.25% | 7.90% |
| Utkarsh Small Finance Bank | Small Finance Bank | 8.10% | 6.00% | 7.50% | 7.00% |
| Shivalik Small Finance Bank | Small Finance Bank | 8.00% | 6.00% | 7.50% | 6.25% |
| Equitas Small Finance Bank | Small Finance Bank | 8.00% | 7.10% | 7.10% | 7.00% |
| Jana Small Finance Bank | Small Finance Bank | 8.00% | 7.00% | 8.00% | 7.77% |
| Ujjivan Small Finance Bank | Small Finance Bank | 7.80% | 7.25% | 7.25% | 7.20% |
| ESAF Small Finance Bank | Small Finance Bank | 7.75% | 4.75% | 6.00% | 5.75% |
| DCB Bank | Private Bank | 7.50% | 6.90% | 7.00% | 7.50% |
| Bandhan Bank | Private Bank | 7.45% | 7.00% | 7.00% | 5.85% |
| AU Small Finance Bank | Small Finance Bank | 7.40% | 6.35% | 7.40% | 6.75% |
| CSB Bank | Private Bank | 7.35% | 5.00% | 5.75% | 5.75% |
| IDFC FIRST Bank | Private Bank | 7.35% | 6.50% | 7.35% | 6.75% |
| Jammu & Kashmir Bank | Private Bank | 7.30% | 6.80% | 6.70% | 6.75% |
| SBM Bank | Private Bank | 7.30% | 7.10% | 7.10% | 7.00% |
| Dhanlaxmi Bank | Private Bank | 7.25% | 6.25% | 6.50% | 6.50% |
| YES Bank | Private Bank | 7.25% | 6.65% | 7.00% | 6.75% |
| RBL Bank | Private Bank | 7.20% | 7.00% | 7.20% | 6.70% |
| Capital Small Finance Bank | Small Finance Bank | 7.15% | 7.00% | 7.00% | 6.90% |
| IndusInd Bank | Private Bank | 7.00% | 6.75% | 7.00% | 6.65% |
| Bank of India | Public Sector Bank | 6.85% | 6.50% | 6.70% | 6.00% |
| Punjab & Sind Bank | Public Sector Bank | 6.85% | 5.85% | 5.85% | 5.95% |
| Indian Bank | Public Sector Bank | 6.80% | 6.10% | 6.05% | 6.00% |
| Bank of Baroda | Public Sector Bank | 6.75% | 6.25% | 6.25% | 6.30% |
| Central Bank of India | Public Sector Bank | 6.70% | 6.10% | 6.00% | 6.00% |
| State Bank of India (SBI) | Public Sector Bank | 6.45% | 6.25% | 6.30% | 6.05% |
MUST READ: HDFC Bank vs ICICI Bank FD rates: Which bank offers better returns in 2026?
Public sector banks
Public sector banks continue to offer relatively lower FD rates but remain a preferred choice for investors prioritising stability and a wide branch network.
Among PSU banks, Bank of India and Punjab & Sind Bank offer the highest rate of 6.85%. They are followed by Indian Bank at 6.80%, Bank of Baroda at 6.75%, Central Bank of India at 6.70%, and Bank of Maharashtra at 6.65%.
Canara Bank, Indian Overseas Bank, and UCO Bank each offer up to 6.60%, while State Bank of India (SBI) offers a maximum FD interest rate of 6.45% for general customers.
Choosing the right FD
While higher interest rates can significantly improve returns, investors should also consider factors such as the bank's financial strength, deposit tenure, liquidity needs, premature withdrawal penalties, and deposit insurance coverage before investing.
MUST READ: SBI vs PNB FD rates: Which public sector bank offers better fixed deposit returns in 2026?
For those seeking the highest returns, small finance banks currently offer the most attractive rates. However, investors looking for greater institutional stability may continue to prefer established private or public sector banks, even if it means accepting slightly lower returns.
With interest rates remaining elevated, July 2026 presents an opportunity for investors to lock in attractive FD rates across a wide range of banks before any future policy-driven rate changes.