FD Interest Rates 2026: SBI, PNB Or Bank of Baroda? Compare Latest Returns Before You Invest

Fixed Deposits (FDs) continue to remain one of the most trusted investment choices for people looking for stable and predictable returns. At a time when stock markets and other market-linked investments can witness sharp fluctuations, many investors prefer the certainty offered by bank FDs.

With interest rates remaining relatively steady, this could be a favourable time for investors to lock in returns. Public sector banks, in particular, continue to attract customers with competitive interest rates, flexible tenures and additional benefits for senior citizens.

Among the leading public sector lenders, SBI, PNB and Bank of Baroda offer several FD options that cater to different investment horizons. Although their interest rates appear similar, a closer comparison reveals notable differences across tenures and special deposit schemes.

Why Fixed Deposits Remain A Popular Investment

Fixed Deposits have long been considered a safe investment because they offer guaranteed returns at a fixed interest rate throughout the investment period.

Unlike market-linked products, the value of an FD is not affected by daily market movements. Investors know exactly how much they will receive at maturity, making FDs suitable for conservative investors and those planning future financial needs.

Another advantage is flexibility. Banks offer FDs for various tenures, allowing investors to choose a period that matches their financial goals. Senior citizens also receive higher interest rates in most cases, making FDs an attractive retirement investment.

One-Year Fixed Deposit Comparison

For investors looking at a one-year investment, the interest rates offered by the three banks are fairly competitive.

SBI currently offers around 6.25%, while PNB provides approximately 6.30% for the same tenure. Bank of Baroda offers 6.10%.

Although the difference is small, PNB holds a slight advantage for general customers seeking a short-term Fixed Deposit.

Medium-Term FDs Offer Competitive Returns

Investors planning to keep their money invested for two to three years may find better returns with selected schemes.

SBI offers around 6.40% for this tenure, while PNB provides between 6.45% and 6.50%. Bank of Baroda offers approximately 6.25%.

The higher rate offered by PNB may appeal to investors aiming to maximise returns over a medium-term investment horizon.

Long-Term FD Rates Remain Similar

For investments ranging from five to ten years, the interest rates among the three public sector banks remain closely aligned.

Bank of Baroda offers around 6.00%, SBI provides between 6.05% and 6.30% depending on the selected tenure, while PNB offers approximately 6.10%.

Although the variation is limited, investors may wish to compare additional features such as premature withdrawal rules and interest payout options before making a decision.

Special FD Schemes Offer Higher Returns

Apart from regular Fixed Deposits, all three banks offer special tenure schemes designed to provide slightly higher interest rates.

SBI's 444-day Amrit Vrishti scheme offers 6.45% for general customers, while eligible senior citizens can earn up to 6.95%.

PNB also provides attractive special deposits. Its 444-day FD offers 6.60%, one of the highest rates among the three banks, while the 666-day FD provides 6.50%. Senior citizens can receive returns of more than 7% under eligible schemes.

Bank of Baroda's Square Drive Scheme offers 6.45% on a 444-day deposit, with senior citizens eligible for interest of up to 6.95%.