January FD Rate Updates: 5 Banks That Changed Their Interest Rates

January 2026 saw multiple banks revising their fixed deposit (FD) interest rates, signaling a continued impact of RBI’s monetary policies on savings products. The latest updates came from Bank of Baroda, Bank of Maharashtra, Canara Bank, Tamilnad Mercantile Bank (TMB), and Jana Small Finance Bank.

The backdrop to these changes is a year of falling FD rates in 2025. The Reserve Bank of India (RBI) cut the repo rate by a cumulative 125 basis points during the year, lowering borrowing costs for banks. With loans becoming cheaper, banks had less need to offer high returns on deposits, prompting the recent reductions. Following RBI’s latest repo cut in December 2025, major lenders like SBI, HDFC Bank, ICICI Bank, and Axis Bank also trimmed FD rates.

Bank-Wise FD Rate Highlights for January 2026:

Jana Small Finance Bank:

Jana SFB revised its rates on January 10. FDs now offer 4.50% to 7.77% for the general public and 4.50% to 8% for senior citizens. Small finance banks (SFBs) like Jana often provide higher interest due to their business model and remain safe under the RBI’s DICGC insurance scheme up to ₹5 lakh per depositor.

Jana SFB’s latest interest rates:

Bank of Baroda:

Effective January 5, BoB offers 3.50% to 6.45% for general deposits, 4% to 7% for senior citizens, and 4% to 7.05% for super senior citizens. Its Square Drive Deposit Scheme, with a tenure of 444 days, offers the highest return.

Here are the rates:

Bank of Maharashtra:

Updated on January 7, FDs now yield 2.6% to 6.65% for the general public, with an additional 0.50% for senior citizens. The top rate is offered on a 400-day special scheme.

Here are the interest rates:

Canara Bank:

From January 5, Canara Bank’s FD rates range from 3% to 6.50% for the general public and 3% to 7% for senior citizens.

Here are the latest FD rates:

Tamilnad Mercantile Bank (TMB):

TMB updated its FD rates on January 8, 2026. For the general public, interest rates range from 4% up to 7.10%, while senior citizens can earn between 4% and 7.50%.

TMB FD rates:

Why Small Finance Banks Remain Attractive:

SFBs like Jana, ESAF, Slice, and Suryoday continue to offer higher returns, often up to 8.10% for senior citizens. While traditional banks offer stability, SFBs provide a competitive edge for those looking to maximize FD returns.

With interest rates trending lower, customers should compare FD rates across banks, especially if planning long-term deposits. Senior citizens benefit from additional interest, and SFBs provide a lucrative option for better returns, secured under the RBI’s insurance framework.

As banks recalibrate FD rates, staying informed is key to making the most of your savings in 2026.