April 2026 FD rates: Where public, private banks, small finance banks, NBFCs stand

Fixed deposit (FD) rates across India are witnessing a clear divergence, with Small Finance Banks (SFBs) offering the most attractive returns, followed by select private banks and NBFCs. Recent data as of April 17, 2026, indicates that SFBs have emerged as the top yield providers, while public sector banks continue to offer relatively lower but stable rates.

SFB FD rates

Among all banking categories, Small Finance Banks are currently leading the interest rate spectrum. Suryoday Small Finance Bank tops the chart with FD rates of 7.90%, followed by Jana Small Finance Bank at 7.77% and Utkarsh Small Finance Bank at 7.25%. Ujjivan SFB offers 7.20%, while AU and Equitas SFBs are at 7.00%. ESAF SFB trails slightly at 6.00%. The higher rates offered by SFBs reflect their need to attract deposits to fund credit growth, particularly in underserved and retail segments.

Private vs public banks

In comparison, private sector banks offer moderately competitive rates. RBL Bank leads at 7.20%, followed by Yes Bank at 7.00% and Kotak Mahindra Bank at 6.80%. Large lenders such as HDFC Bank, ICICI Bank, and Axis Bank offer rates in the range of 6.45%–6.50%, while IDBI Bank stands at 6.50%.

Public sector banks, meanwhile, remain conservative in their offerings. Most PSU banks—including Punjab National Bank, Union Bank, Bank of India, Indian Bank, Bank of Baroda, and Canara Bank—offer 6.60%, while State Bank of India provides 6.45%.

This spread highlights a roughly 100–150 basis points gap between SFBs and large public banks.

NBFC FDs

Non-Banking Financial Companies (NBFCs) continue to offer competitive FD rates, often surpassing traditional banks across select tenures.

Muthoot Capital Services offers up to 8.50% for 3- and 5-year tenures
Manipal Housing Finance provides up to 8.25% for shorter durations
Shriram Finance offers 7.60% for 3- and 5-year deposits
PNB Housing Finance and Bajaj Finance provide rates up to 7.10%–7.30%

Other players like ICICI Home Finance, LIC Housing Finance, and HDFC Ltd. offer relatively stable returns in the 6.65%–7.15% range.

NBFCs determine FD rates based on repo rate trends, internal cost of funds, and profitability requirements. They raise capital through bonds, commercial papers, long-term lending spreads, and foreign investments.

Key features of NBFC fixed deposits

AAA-rated NBFC FDs (ICRA/CRISIL) are generally considered relatively safe
Senior citizens typically receive an additional 0.25% interest
Interest earned is fully taxable
NBFCs cannot issue cheques as they are outside the payment settlement system

Investment perspective

For yield-focused investors, SFBs and NBFCs present compelling opportunities, offering returns significantly higher than traditional banks. However, the risk-return trade-off remains critical. While PSU banks provide safety and stability, SFBs and NBFCs demand closer scrutiny of credit ratings, liquidity, and issuer credibility.