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While searching for a high-interest FD in 2026, you may not be the only person doing it, as there is no sign of a fall in interest rates. Due to this, there is a huge number of investors searching for fixed deposits that give them a yield of over 8% p.a. However, despite most public and private banks giving FD rates of 6% to 7%, there are a few Small Finance Banks that give an interest rate of 8% or more for selected FD tenures.
However, along with the FD interest rate, you must consider other aspects like the bank’s conditions, tenor of the deposit, liquidity requirements, taxation, and deposit insurance while making the decision.
Disclaimer: This article is meant for educational purposes and not financial advice or a suggestion to invest in any financial instrument. Rates of FD are subject to change; please check the latest FD interest rate from the respective banks.
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Which Banks Offer FD Interest Rates Above 8% in 2026?
As of July 2026, several Small Finance Banks are offering FD rates of around 8% or more for specific deposit tenures. These rates are generally available only for selected maturity periods and may differ for senior citizens.
| Bank | Highest FD Rate (General) |
| Suryoday Small Finance Bank | Up to 8.10% p.a. |
| Utkarsh Small Finance Bank | Up to 8.10% p.a. |
| Jana Small Finance Bank | Up to 8.00% p.a. |
| Shivalik Small Finance Bank | Up to 8.00% p.a. |
| Equitas Small Finance Bank | Up to 8.00% p.a. |
Rates are available on specific tenures and are subject to revision by the respective banks.
Should You Choose an FD Only Because It Offers 8%?
While a higher interest rate certainly can enhance the maturity value of your investment, it shouldn’t be the only criterion while making such a choice.
However, before investing, you will need to take into account the tenure of the deposit, premature withdrawal facility, methods of receiving interest payments, taxes applicable to your investment, and your liquidity needs. Furthermore, all eligible bank deposits are also covered under the DICGC insurance scheme for a maximum sum of ₹5 lakh per depositor per bank as per certain conditions.
It is generally advisable for an investor to choose a fixed deposit based on his/her financial needs rather than the one offering the highest interest rate.
Latest Fixed Deposit Updates:
- High Interest Rate FD 2026: Which Banks Offer Above 8% on Fixed Deposits?
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- IOB Fixed Deposit Interest Rates July 2026: Indian Overseas Bank FD Complete Guide
What are some other fixed-income instruments that Investors can consider?
There are plenty of other fixed-income investment instruments apart from the traditional fixed deposits in India. Depending on his/her financial requirements, the investor might even choose other instruments like listed corporate bonds, G-securities, PSU Bonds, and Non-Convertible Debentures (NCD).
While certain bonds might offer a yield that is higher/lower than the FD rates. But unlike fixed deposits in banks, these investment instruments have some different characteristics.
| Feature | Fixed Deposit | Listed Bonds |
| Issuer | Banks | Government, PSU, or Corporate Issuers |
| Return | Fixed by the bank | Based on the coupon, purchase price, and market yield |
| Tradability | Generally not traded | Some listed bonds may be traded on exchanges |
| Risk Profile | Depends on the bank | Varies by issuer and credit quality |
| Suitable For | Investors seeking fixed deposit products | Investors evaluating different fixed-income instruments |
This comparison is for educational purposes only and should not be interpreted as a recommendation of one product over another.
Should You Use a High-Interest FD Calculator?
The Fixed Deposit Calculator assists in predicting the maturity amount, taking into account the deposit amount, rate of interest, tenure, and number of times the amount is compounded. This is a very handy device to analyze different FD tenures.
Frequently Asked Questions (FAQs)
Some of the Small Finance Banks, such as Suryoday, Utkarsh, Jana, Shivalik, and Equitas Small Finance Bank, provide FD rates that range between 8% or more for certain tenures. The rates can fluctuate.
This is not always the case because investors need to take into consideration other factors like tenure, liquidity, taxation, early withdrawal policies, and whether the investment fits in with their objectives.
According to the issuer, tenures, market situation, and price at which they are purchased, there are some listed bonds whose yield differs from the current FD rates.
The bank deposits that qualify are protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantee scheme up to the prescribed limit per depositor per bank.
Conclusion
The high-interest fixed deposit is one such option that could turn out to be a good investment choice, more so if the rate is greater than 8%. But investing decisions based only on the interest rates can be risky. Comparing the various aspects of the investment products and being able to know about their features before investing would be wise. Also, it is good to have knowledge about the working of other debt investments.
Disclaimer
Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and/or default in payment. Read all the offer-related documents carefully. This blog/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products/services of/on GoldenPi or any product/services of its third-party client(s). For a detailed calculation of YTM, visit our website. T&C’s Apply.
