BankingJanuary 15, 20268 min read
FD Interest Rates January 2026: SBI, HDFC, ICICI, Axis Bank — Complete Comparison
Compare the latest fixed deposit rates across all major banks. Includes senior citizen rates, TDS rules, and which bank gives the best returns.
Best FD Rates Right Now (January 2026)
- Highest General Rate: Post Office TD — 7.0% (5-year)
- Highest Bank Rate: ICICI / Axis Bank — 6.70%
- Best Senior Citizen: ICICI / Axis — 7.20%
- Small Finance Bank: Unity, Ujjivan — up to 8.5%
FD Interest Rates — All Major Banks (January 2026)
Here are the latest FD rates for 1-year and 5-year tenures:
1-Year FD Rates
| Bank | General | Senior Citizen | Min Deposit |
|---|---|---|---|
| SBI | 6.50% | 7.00% | ₹1,000 |
| HDFC Bank | 6.60% | 7.10% | ₹5,000 |
| ICICI Bank | 6.70% | 7.20% | ₹10,000 |
| Axis Bank | 6.70% | 7.20% | ₹5,000 |
| Kotak Mahindra | 6.20% | 6.70% | ₹5,000 |
| Bank of Baroda | 6.50% | 7.00% | ₹1,000 |
| PNB | 6.50% | 7.00% | ₹1,000 |
| Indian Bank | 6.25% | 6.75% | ₹1,000 |
| Post Office TD | 7.00% | 7.00% | ₹1,000 |
How Much Will ₹5 Lakh FD Earn?
Here's how much you'd earn on a ₹5,00,000 FD across banks (quarterly compounding):
| Bank | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| SBI (6.50%) | ₹33,234 | ₹1,06,543 | ₹1,89,580 |
| HDFC (6.60%) | ₹33,735 | ₹1,08,271 | ₹1,92,936 |
| ICICI (6.70%) | ₹34,237 | ₹1,10,007 | ₹1,96,313 |
| Post Office (7.00%) | ₹35,749 | ₹1,15,259 | ₹2,06,489 |
TDS on FD Interest — Rules for 2026
- TDS threshold (general): ₹40,000 per year across all FDs in one bank
- TDS threshold (senior citizen): ₹50,000 per year
- TDS rate: 10% (if PAN provided), 20% (without PAN)
- How to avoid TDS: Submit Form 15G (below 60) or Form 15H (senior citizens) if your total income is below the taxable limit
- Important: TDS is deducted at source by the bank, even if interest is not paid out (cumulative FD)
Tax-Saving FD vs Regular FD
| Feature | Regular FD | Tax-Saving FD |
|---|---|---|
| Lock-in | 7 days to 10 years (flexible) | 5 years (fixed) |
| 80C deduction | No | Yes (up to ₹1.5L) |
| Premature withdrawal | Allowed (with penalty) | Not allowed |
| Interest taxability | Fully taxable | Fully taxable |
| Loan against FD | Available | Not available |
FD vs Other Safe Investments
- FD vs PPF: PPF gives 7.1% tax-free. FD interest is taxable. For long-term, PPF is better after tax. PPF Guide →
- FD vs Debt Mutual Fund: Debt funds now taxed at slab rate (no indexation). FD is simpler, debt funds offer better liquidity.
- FD vs RBI Floating Rate Bond: RBI bond gives 8.05% (floating), but has 7-year lock-in and no premature withdrawal.
- FD vs Savings Account: FD always better for surplus funds (6.5% vs 3-4%).
Compare FD Returns Across Banks
Use our free FD calculator to compare maturity amounts across SBI, HDFC, ICICI, and more.
FD Calculator →