What’s the best bank FD rate today in India and how often do these rates change?

Fixed deposits are a popular savings choice with varying interest rates linked to amounts and tenure.

Fixed deposits are a widely preferred savings option for those looking for stable and predictable returns. However, FD interest rates can differ depending on the bank, deposit tenure and customer category. Understanding how these rates work, what influences them and how frequently they change can help you make informed investment decisions.

What’s the best bank FD rate today in India and how often do these rates change?

What Are FD Interest Rates?

The annual interest rate of a fixed deposit account is the annual percentage return of a bank. The depositor receives interest on the lump-sum amount placed in a fixed deposit account for specific period. The interest rates are different based on the amount deposited or the tenure chosen by the depositor.

How FD Interest Rates Work

The interest rate of a fixed deposit is set by a bank for different tenures, the interest rate is applied either simple or compound interest, the depositor received the principal amount and the interest at the maturity of the tenure.

Simple Interest

This is calculated only on the base deposit amount. The formula is Principal x Rate x Time/100. It is used mostly for short-terms or regular payouts.

Compound Interest

It is calculated on the base deposit and the interest you already earned. To put it simply this means the depositor earns interest on top of past interest, making the total amount grow faster.

Best FDs to Consider

Fixed deposit rates vary across banks and tenures, so comparing the highest available rate can help investors identify potentially attractive options. The table below compares selected banks based on their highest listed FD interest rates for regular customers.

Bank	FD Interest Rate	Tenure
DBS Bank	6.85% p.a.	376 to 400 days
ICICI Bank	6.50% p.a.	3 years 1 day to 5 years
HDFC Bank	6.60% p.a.	1 year to less than 15 months
Axis Bank	6.50% p.a.	18 months to less than 2 years
SBI	6.40% p.a.	2 years to less than 3 years

DBS Bank currently offers the highest rate in this comparison at 6.85% p.a. for 376 to 400 days. Eligible senior citizens can earn 7.35% p.a. for the same tenure. DBS Bank's published rates are effective from 6 May 2026 and are subject to change.

What Factors Affect FD Interest Rates?

FD rates may depend upon various factors, such as:

• Interest Rates Set by RBI: The movement of repo rates may affect the interest rate scenario.
• Duration of FD: Different rates may be offered for different duration.
• Market Situation: Interest rates may be affected by inflation, liquidity and other economic situations.
• Banks’ Requirements: Banks may change their rates depending upon their needs for deposits.
• Category of Customer: Senior citizens may enjoy higher interest rates than ordinary customers.
• Market Competition: Banks may change their interest rates due to competition among themselves.

Why Do FD Rates Differ Across Banks?

FD rates can vary between banks due to differences in:

1. Funding Requirements: Banks may offer different rates based on their need to attract deposits.
2. Tenure: Interest rates can vary depending on the FD maturity period.
3. Customer Category: Senior citizens may receive higher rates than regular customers.
4. Bank Policies: Each bank follows its own deposit pricing strategy.
5. Market Competition: Banks may adjust rates to remain competitive.

How Often Do Banks Revise FD Rates?

Banks do not follow a fixed schedule for revising FD interest rates. Rates may change based on market conditions, funding requirements, competition and changes in the broader interest rate environment.

• Rate revisions vary by bank: Each bank decides when to revise its FD rates based on its deposit and funding requirements.
• Market conditions: Changes in liquidity, inflation and interest rates can influence rate revisions.
• RBI policy changes: Changes in the RBI’s policy rates can affect the broader deposit rate environment.
• Competitive pricing: Banks may revise rates to remain competitive and attract deposits.

DBS Bank’s FD rates are subject to change, with the bank publishing applicable rates based on different tenures and customer categories. Its current highest listed rate is 6.85% p.a. for 376 to 400 days, while eligible senior citizens can earn 7.35% p.a. for the same tenure.

Does an FD Rate Change After Booking?

Once an FD is booked, the applicable interest rate generally remains fixed for the selected tenure.

• Rate remains fixed: Changes in the bank’s FD rates generally do not affect an existing deposit.
• New deposits: Revised rates usually apply to FDs booked after the change.
• FD renewal: When an FD matures and is renewed, the applicable interest rate may be based on the rate offered by the bank at the time of renewal.
• Premature withdrawal: Withdrawing an FD before its maturity date may result in reduced interest earnings or applicable charges, depending on the bank’s terms.

How to Compare FD Interest Rates

Comparing FD rates can help you assess the potential returns and choose a deposit that suits your financial requirements.

• Compare the same tenure: Check rates for the same investment period across banks.
• Check customer category: Senior citizens may receive preferential rates.
• Consider the maturity amount: Aside from the interest rate and compare the amount payable at maturity.
• Review withdrawal terms: Check the applicable conditions and penalties for premature withdrawal.
• Check the rate validity: Confirm that the advertised rate is currently applicable before booking the FD.
• Consider your financial goals: Select a tenure and rate that align with your investment horizon and liquidity needs.

With DBS Bank, you can open a fixed deposit conveniently through the DBS digibank app, subject to applicable eligibility and account requirements.

Conclusion

FD interest rates vary across banks, tenures and customer categories and may change based on market conditions and banking requirements. While rates generally remain fixed after booking, revised rates may apply to new or renewed deposits. Comparing interest rates, maturity amounts, tenure and withdrawal terms can help you choose an FD or online savings account suited to your financial goals.

Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.