Best FD interest rates in India: Check fixed deposit returns of DCB Bank, RBL Bank, YES Bank and more — SkimNews
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- DCB Bank tops multiple tenure buckets with 6-month deposits at 6-6.50%, 1-2 year at 6.90-7%, 2-3 year at 6.90-7.50%, and over-5-year deposits at 7-7.50%, based on rates as of 3 August 2026.
- RBL Bank pays 7-7.20% on 1-2 year deposits and 7.20% on 2-3 year deposits, placing it among the strongest medium-term FD options in the comparison.
- YES Bank and Tamilnad Mercantile Bank tie for the top 1-2 year rate at 7.25%, while Dhanlaxmi Bank offers the highest 3-5 year rate at up to 7.25%.
- Public sector banks like Canara Bank and Indian Overseas Bank, along with large private peers HDFC Bank and ICICI Bank, offer notably lower rates — HDFC's over-5-year FDs earn just 6.15-6.40% and ICICI's 6-month deposits start at 4.50%.
- The comparison spans five maturity buckets from 6 months to over 5 years and notes that investors should weigh rate differences against liquidity needs, bank reputation and financial goals before investing.
Why it matters: Conservative and senior-citizen investors can earn roughly 100-135 basis points more by parking deposits at smaller private banks — DCB Bank pays up to 7.50% on long-term FDs versus HDFC Bank's 6.15-6.40% for the same tenure — but the article flags bank reputation and liquidity as necessary counterweights to chasing the highest headline rate.
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