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:

• 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 Bank
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%