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Bank FD Rates: Amidst stock market volatility and uncertainty, Fixed Deposits (FDs) remain a preferred investment avenue—especially for senior citizens seeking safety. As of September 2026, the country's Small Finance Banks (SFBs) are offering annual interest rates of up to 8.25% to their customers.

If you are planning to invest ₹15 lakh from your retirement corpus or savings into an FD, here is a breakdown of your potential annual and monthly earnings based on various interest rates, along with the complete list of bank rates.

Bank-wise FD Rate List (September 2026)

1. Small Finance Banks (Highest Interest Rates):

Suryoday Small Finance Bank: Up to 8.25%
Utkarsh Small Finance Bank: Up to 8.10%
Equitas, ESAF, Jana, Shivalik SFB: Up to 8.00%
Ujjivan Small Finance Bank: Up to 7.80%
Slice Small Finance Bank: Up to 7.75%
AU Small Finance Bank: Up to 7.40%

2. Private and Foreign Banks:

SBM Bank India: Up to 7.65%
DCB Bank: Up to 7.50%
Bandhan Bank: Up to 7.45%
YES Bank: Up to 7.25%
RBL Bank: Up to 7.20%
Deutsche Bank: Up to 7.00%
HDFC, ICICI, Axis Bank: Up to 6.50%

3. Public Sector Banks:

Bank of India & Punjab & Sind Bank: Up to 6.85%
Bank of Baroda & Central Bank of India: Up to 6.75%
Bank of Maharashtra & Indian Bank: Up to 6.65%
Canara Bank & Indian Overseas Bank: Up to 6.60%

What will be the earnings on an FD of ₹15 lakh? If you invest ₹15 lakh in fixed deposits across banks offering varying interest rates, your estimated interest income would be as follows:

Earn up to 8.25% interest on FDs with these banks! Understand the full interest income calculation for a ₹15 lakh fixed deposit post-retirement.

(Note: A discounted rate may apply if you opt for monthly interest payouts, whereas compounding FDs yield higher total returns upon maturity. Senior citizens typically receive an additional 0.25% to 0.50% interest.)

Expert tips for investors parking their retirement funds:

₹5 lakh insurance cover (DICGC Rule): Small Finance Banks are also regulated by the RBI, and under DICGC norms, customer deposits (principal + interest) of up to ₹5 lakh per bank are insured.

Diversification formula: If you have a substantial sum of ₹15 lakh, instead of placing the entire amount in a single bank, split it across three different banks (e.g., ₹5 lakh each) for your FDs. This ensures your entire capital remains insured while potentially yielding better returns.

Senior citizen benefit: If you are 60 years of age or older, many Small Finance Banks offer higher returns ranging from 8.50% to 8.75% on FDs.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.