8% FD interest is still available: These banks offer the highest rates in August 2026

Fixed deposit investors can still find interest rates of 8% or more in August 2026, although the highest rates are largely concentrated among small finance banks. Suryoday Small Finance Bank and Utkarsh Small Finance Bank currently offer the highest regular-customer rate in the list at 8.10%, while Jana, Shivalik and Unity offer 8% on select tenures.

The FD rate data as of August 11 shows that investors looking beyond large public and private sector banks can potentially earn significantly higher returns by choosing small finance banks. However, the headline rate is available only for specific tenures, making it important to compare both the interest rate and lock-in period.

The highest rate available to regular depositors is therefore 8.10%, offered by Suryoday and Utkarsh. Suryoday offers this rate on a 30-month deposit, while Utkarsh offers it for 666 days. Jana's 8% rate is available for three years, while Shivalik offers 8% over a tenure ranging from 23 months and one day to 27 months. Unity offers 8% for 1 year, 4 months and 15 days.

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Senior citizens FD

For senior citizens, the rates are higher. Shivalik and Unity offer up to 8.50% on specified tenures, while Jana offers 8.30%. Suryoday and Utkarsh offer 8.25%, and Ujjivan Small Finance Bank offers 8.30% for a two-year deposit.

The rate gap is substantial when compared with some of the country's largest banks. SBI's highest regular FD rate in the data is 6.45%, while Bank of Baroda offers up to 6.75%. HDFC Bank and ICICI Bank offer a maximum of 6.50%. This means an 8.10% FD offers 1.65 percentage points more than SBI's highest rate.

However, investors should not select an FD solely on the basis of the highest interest rate. Small finance banks have different business models and may offer higher rates to attract deposits. Investors should assess the bank's financial position, the applicable tenure, premature withdrawal conditions and their own liquidity requirements before investing.

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Deposit insurance 

Deposit insurance is also an important consideration. Bank deposits are covered by DICGC insurance subject to the applicable limit of ₹5 lakh per depositor per bank, including principal and interest. Investors with larger sums may therefore consider spreading deposits across institutions rather than concentrating their entire allocation in one bank.

The August rate table shows that 8% FD returns remain available, but they come with specific tenure and institution considerations. For investors prioritising higher fixed-income returns, small finance banks offer some of the most competitive rates currently available, while large banks continue to offer lower rates with a different risk and banking profile.