Fixed Deposit Options in February 2026 With Interest Rates Up to 8.95%
Fixed deposits (FDs) remain one of India’s safest investment options, especially for senior citizens who prefer steady interest income over market-linked products. However, the interest rate environment has shifted following a series of repo rate cuts by the Reserve Bank of India (RBI), with the last policy meeting on February 6, 2026, keeping rates unchanged.
What This Means for Senior Citizens
Higher-yield FD options are narrowing, particularly among major banks. Adhil Shetty, CEO of BankBazaar, notes that “the scope for further upside in deposit rates remains limited under a steady-rate environment. Senior citizen premiums remain an advantage, though these too are expected to evolve as banks adjust to a stable but lower reference-rate regime.”
For retirees who rely heavily on interest income, the key question is: how can you make the most of fixed deposits when rates have peaked?
Smart Strategies to Maximise FD Returns
Financial experts recommend a few practical approaches to make the most of the current FD landscape:
Siddharth Maurya, Founder and MD of Vibhavangal Anukulakara Pvt Ltd, suggests FD laddering as a simple yet effective method:
“Divide your money among various periods so that not all deposits grow at today’s lower rates. This ensures some maturities are always coming up, allowing you to benefit if rates rise. Senior citizens can also opt for a combination of bank FDs, a few corporate FDs, and small savings schemes to achieve a balance of safety and slightly higher yields rather than sticking to a single product.”
Highest interest: 8.10% (444 days)
1 year: 5.25%
3 years: 6.50%
5 years: 6.25%
10 years: 6.25%
Super senior additional rate: None
Jana Small Finance Bank
Highest interest: 8% (Above 2 years to 3 years)
1 year: 7.50%
3 years: 8%
5 years: 7.77%
10 years: 7%
Super senior additional rate: None
Shivalik Small Finance Bank
Highest interest: 8% (21 months 1 day to 22 months)
1 year: 6.50%
3 years: 7.25%
5 years: 6.75%
10 years: 6.75%
Super senior additional rate: None
Utkarsh Small Finance Bank
Highest interest: 8% (2 years to 3 years)
1 year: 6.50%
3 years: 8%
5 years: 7.50%
10 years: 7.25%
Super senior additional rate: None
Private sector banks
Bandhan Bank
Highest interest: 7.70% (2 years to less than 3 years)
1 year: 7.50%
3 years: 7.50%
5 years: 6.60%
10 years: 6.60%
Super senior additional rate: None
Jammu & Kashmir Bank
Highest interest: 7.75% (888 days)
1 year: 7.25%
3 years: 7.15%
5 years: 7.10%
10 years: 7.10%
Super senior additional rate: 0.25% on all tenures
RBL Bank
Highest interest: 7.70% (18 months to 3 years)
1 year: 7.50%
3 years: 7.70%
5 years: 7.20%
10 years: 7.20%
Super senior additional rate: 0.25% on all tenures
SBM Bank India
Highest interest: 7.80% (Above 18 months to less than 2 years 3 days)
1 year: 7.60%
3 years: 7.60%
5 years: 7.50%
10 years: 7.50%
Super senior additional rate: None
YES Bank
Highest interest: 7.75% (3 years to less than 5 years)
1 year: 7.15%
3 years: 7.75%
5 years: 7.50%
10 years: 7.50%
Super senior additional rate: None
Public sector banks
Bank of India
Highest interest: 7.20% (450 days Star Swarnim)
1 year: 6.75%
3 years: 7%
5 years: 6.75%
10 years: 6.75%
Super senior additional rate: 0.15% on tenures of 180 days to 10 years
Bank of Maharashtra
Highest interest: 7.15% (400 days)
1 year: 6.70%
3 years: 5.75%
5 years: 5.50%
10 years: 5.50%
Super senior additional rate: None
Indian Overseas Bank
Highest interest: 7.10% (444 days)
1 year: 7%
3 years: 6.60%
5 years: 6.60%
10 years: 6.60%
Super senior additional rate: 0.25% on all tenures
Punjab & Sind Bank
Highest interest: 7.10% (444 days)
1 year: 6.35%
3 years: 6.35%
5 years: 6.45%
10 years: 6.35%
Super senior additional rate: 0.15% on 375 days, 444 days, 777 days, 999 days and PSB Green Earth (22 months, 44 months, 66 months)
Union Bank of India
Highest interest: 7.10% (444 days)
1 year: 6.80%
3 years: 6.75%
5 years: 6.50%
10 years: 6.50%
Super senior additional rate: 0.25% on all tenures
Corporate FDs
Shriram Finance
Credit rating: ICRA AA+ (Stable); IND AA+/Stable by India Ratings and Research
Highest interest: 7.60% (3 years to 5 years)
1 year: 7%
3 years: 7.60%
5 years: 7.60%
Additional interest for senior citizens: 0.50%
Manipal Housing Finance Syndicate Ltd.
Credit rating: ACUITE A
Highest interest: 8.25% (1 year; 2 years; 3 years)
1 year: 8.25%
3 years: 8.25%
5 years: 7.75%
Additional interest for senior citizens: 0.25%
Muthoot Capital Services Ltd.
Credit rating: CRISIL A+/Stable
Highest interest: 8.95% (36 months)
1 year: 7.90%
3 years: 8.95%
5 years: 8.50%
Additional interest for senior citizens: 0.25%
Can Fin Homes Ltd.
Credit rating: ICRA AAA/Stable
Highest interest: 7.50% (3 years)
1 year: 6.50%
3 years: 7.50%
5 years: 6.75%
Additional interest for senior citizens: 0.25%–0.50%
In a stable but lower interest rate environment, senior citizens and conservative investors need to be strategic with fixed deposits. Diversifying across tenures, using FD laddering, and blending bank, corporate, and government-backed options can help balance safety with slightly higher returns. Staying informed about the best FD rates each month ensures that your savings continue to work effectively, even when rates have peaked.
Disclaimer: The interest rates mentioned in this article are indicative as of February 2026 and are subject to change by the respective banks and financial institutions. Investors are advised to verify the latest rates, terms, and eligibility criteria directly with the bank or financial institution before making any investment decisions. Fixed deposits and corporate FDs carry varying levels of risk, and past rates do not guarantee future returns.
What This Means for Senior Citizens
Higher-yield FD options are narrowing, particularly among major banks. Adhil Shetty, CEO of BankBazaar, notes that “the scope for further upside in deposit rates remains limited under a steady-rate environment. Senior citizen premiums remain an advantage, though these too are expected to evolve as banks adjust to a stable but lower reference-rate regime.” For retirees who rely heavily on interest income, the key question is: how can you make the most of fixed deposits when rates have peaked?
Smart Strategies to Maximise FD Returns
Financial experts recommend a few practical approaches to make the most of the current FD landscape:
- Spread deposits across tenures: Break your investment into multiple periods to manage rate fluctuations.
- Keep liquidity handy: Stagger maturities so funds are available when needed.
- Diversify your FD mix: Combine bank FDs, corporate FDs, and government-backed schemes.
- Align with goals and risk appetite: Choose products that match your time horizon and comfort with risk.
Siddharth Maurya, Founder and MD of Vibhavangal Anukulakara Pvt Ltd, suggests FD laddering as a simple yet effective method:
“Divide your money among various periods so that not all deposits grow at today’s lower rates. This ensures some maturities are always coming up, allowing you to benefit if rates rise. Senior citizens can also opt for a combination of bank FDs, a few corporate FDs, and small savings schemes to achieve a balance of safety and slightly higher yields rather than sticking to a single product.”
Best FD Rates in February 2026
For conservative investors, it’s important to review rates regularly. Here’s a snapshot of some of the top FD rates in February 2026, helping you plan investments efficiently and maximize returns while keeping risk low.Small finance banks
ESAF Small Finance BankHighest interest: 8.10% (444 days)
1 year: 5.25%
3 years: 6.50%
5 years: 6.25%
10 years: 6.25%
Super senior additional rate: None
Jana Small Finance Bank
Highest interest: 8% (Above 2 years to 3 years) 1 year: 7.50%
3 years: 8%
5 years: 7.77%
10 years: 7%
Super senior additional rate: None
Shivalik Small Finance Bank
Highest interest: 8% (21 months 1 day to 22 months) 1 year: 6.50%
3 years: 7.25%
5 years: 6.75%
10 years: 6.75%
Super senior additional rate: None
Utkarsh Small Finance Bank
Highest interest: 8% (2 years to 3 years) 1 year: 6.50%
3 years: 8%
5 years: 7.50%
10 years: 7.25%
Super senior additional rate: None
Private sector banks
Bandhan Bank
Highest interest: 7.70% (2 years to less than 3 years) 1 year: 7.50%
3 years: 7.50%
5 years: 6.60%
10 years: 6.60%
Super senior additional rate: None
Jammu & Kashmir Bank
Highest interest: 7.75% (888 days) 1 year: 7.25%
3 years: 7.15%
5 years: 7.10%
10 years: 7.10%
Super senior additional rate: 0.25% on all tenures
RBL Bank
Highest interest: 7.70% (18 months to 3 years) 1 year: 7.50%
3 years: 7.70%
5 years: 7.20%
10 years: 7.20%
Super senior additional rate: 0.25% on all tenures
SBM Bank India
Highest interest: 7.80% (Above 18 months to less than 2 years 3 days) 1 year: 7.60%
3 years: 7.60%
5 years: 7.50%
10 years: 7.50%
Super senior additional rate: None
YES Bank
Highest interest: 7.75% (3 years to less than 5 years) 1 year: 7.15%
3 years: 7.75%
5 years: 7.50%
10 years: 7.50%
Super senior additional rate: None
Public sector banks
Bank of India
Highest interest: 7.20% (450 days Star Swarnim) 1 year: 6.75%
3 years: 7%
5 years: 6.75%
10 years: 6.75%
Super senior additional rate: 0.15% on tenures of 180 days to 10 years
Bank of Maharashtra
Highest interest: 7.15% (400 days) 1 year: 6.70%
3 years: 5.75%
5 years: 5.50%
10 years: 5.50%
Super senior additional rate: None
Indian Overseas Bank
Highest interest: 7.10% (444 days) 1 year: 7%
3 years: 6.60%
5 years: 6.60%
10 years: 6.60%
Super senior additional rate: 0.25% on all tenures
Punjab & Sind Bank
Highest interest: 7.10% (444 days) 1 year: 6.35%
3 years: 6.35%
5 years: 6.45%
10 years: 6.35%
Super senior additional rate: 0.15% on 375 days, 444 days, 777 days, 999 days and PSB Green Earth (22 months, 44 months, 66 months)
Union Bank of India
Highest interest: 7.10% (444 days) 1 year: 6.80%
3 years: 6.75%
5 years: 6.50%
10 years: 6.50%
Super senior additional rate: 0.25% on all tenures
Corporate FDs
Shriram Finance
Credit rating: ICRA AA+ (Stable); IND AA+/Stable by India Ratings and Research Highest interest: 7.60% (3 years to 5 years)
1 year: 7%
3 years: 7.60%
5 years: 7.60%
Additional interest for senior citizens: 0.50%
Manipal Housing Finance Syndicate Ltd.
Credit rating: ACUITE A Highest interest: 8.25% (1 year; 2 years; 3 years)
1 year: 8.25%
3 years: 8.25%
5 years: 7.75%
Additional interest for senior citizens: 0.25%
Muthoot Capital Services Ltd.
Credit rating: CRISIL A+/Stable Highest interest: 8.95% (36 months)
1 year: 7.90%
3 years: 8.95%
5 years: 8.50%
Additional interest for senior citizens: 0.25%
Can Fin Homes Ltd.
Credit rating: ICRA AAA/Stable Highest interest: 7.50% (3 years)
1 year: 6.50%
3 years: 7.50%
5 years: 6.75%
Additional interest for senior citizens: 0.25%–0.50%
In a stable but lower interest rate environment, senior citizens and conservative investors need to be strategic with fixed deposits. Diversifying across tenures, using FD laddering, and blending bank, corporate, and government-backed options can help balance safety with slightly higher returns. Staying informed about the best FD rates each month ensures that your savings continue to work effectively, even when rates have peaked.
Disclaimer: The interest rates mentioned in this article are indicative as of February 2026 and are subject to change by the respective banks and financial institutions. Investors are advised to verify the latest rates, terms, and eligibility criteria directly with the bank or financial institution before making any investment decisions. Fixed deposits and corporate FDs carry varying levels of risk, and past rates do not guarantee future returns.
Next Story