Special FD rates in August 2026: DCB Bank, Indian Bank, Federal Bank and Union Bank offer higher returns

Several banks have revised their fixed deposit (FD) interest rates in August 2026, with special-tenure deposits offering investors an opportunity to lock in comparatively attractive returns. DCB Bank currently offers the highest rate among the banks listed, while Indian Bank, Federal Bank and Union Bank of India also have specific tenures that may appeal to FD investors.

DCB Bank offers up to 7.50%

DCB Bank is offering one of the highest FD interest rates among the banks covered. General customers can earn up to 7.50% on select tenures, including 24-25 months, 34-35 months and 60-61 months.

For senior citizens, the maximum rate rises to 8.05% on eligible deposits. The bank's special-tenure structure makes it important for investors to check the exact maturity period before booking an FD, particularly if they are looking for the highest available rate rather than simply the longest tenure.

Indian Bank’s 555-day special FD

Indian Bank's revised rates include a special deposit offering for 555 days. The Ind Grow FD offers 6.65% for general customers, making the special tenure an option for investors who do not want to commit their money for several years.

Senior citizens can earn up to 7.15%, according to the rates provided. The difference between regular and senior-citizen rates highlights why investors should check their eligibility before comparing FD returns across banks.

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Federal Bank offers 6.70% on 48-month FD

Federal Bank offers a maximum rate of 6.70% to general customers on a 48-month deposit. Senior citizens can earn up to 7.20% on the same tenure.

Although the headline rate is lower than DCB Bank's 7.50%, investors may still consider the deposit depending on their preferred investment horizon and other FD terms.

Union Bank has special-tenure options

Union Bank of India offers up to 6.55% on callable deposits. Certain non-callable deposits can offer higher rates, according to the information provided. The bank also has special tenures of 400, 444 and 555 days, with separate interest rates.

This makes the distinction between callable and non-callable deposits important. Investors should not compare rates without checking whether they can withdraw the money before maturity and what conditions apply.

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Check FD insurance before investing

Interest rate should not be the only factor when choosing a bank FD. Eligible deposits with insured banks are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 lakh per depositor, per bank, including principal and interest, subject to applicable rules.

Deposits such as savings accounts, current accounts and FDs held with the same bank are generally aggregated for the ₹5 lakh insurance limit. Deposits maintained with different banks are insured separately.

For investors comparing special FDs in August 2026, the key factors are therefore the interest rate, tenure, senior-citizen eligibility, callable or non-callable status and deposit-insurance coverage—not just the headline rate.

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