Fixed Deposit Interest Rates 2026: Which Public Sector Bank Offers The Best Returns?

If you're planning to park your savings in fixed deposits, it's essential to compare interest rates offered by different banks before making a decision. Here's a look at the latest fixed deposit (FD) rates offered by some of the top public sector banks in 2026, including State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India, Central Bank of India, Bank of India, and Indian Overseas Bank.

State Bank of India FD Rates

•1 year to less than 2 years: 6.25%
•2 years to less than 3 years: 6.40%
•3 years to less than 5 years: 6.30%
•5 years to up to 10 years: 6.05%

Punjab National Bank FD Rates

•1 year: 6.25%
•445 days to 2 years: 6.30%
•Above 2 years to 3 years: 6.30%
•Above 3 years to 1203 days: 6.30%
•Above 5 years to 10 years: 6.00%

Bank of Baroda FD Rates

•1 year: 6.10%
•Above 1 year to 400 days: 6.25%
•Above 400 days up to 2 years (except 444 days): 6.25%
•Above 2 years up to 3 years: 6.25%
•Above 3 years up to 5 years: 6.30%
•Above 5 years up to 10 years: 6.00%

Canara Bank FD Rates

•1 year: 6.25%
•3 years: 6.25%
•5 years: 6.25%
•10 years: 6.25%

Union Bank of India FD Rates

•1 year: 6.30%
•More than 1 year to 399 days: 6.30%
•445 days to 2 years: 6.30%
•More than 2 years to 996 days: 6.25%
•More than 998 days to 3 years: 6.25%
•More than 3 years to 10 years: 6.00%

Central Bank of India FD Rates

•1 year: 6.20%
•3 years: 6.00%
•5 years: 6.00%
•10 years: 6.00%

Bank of India FD Rates

•1 year: 6.25%
•Above 1 year to less than 2 years (except 450 days): 6.30%
•2 years to less than 3 years: 6.30%
•3 years to less than 5 years: 6.25%
•5 years to less than 8 years: 6.00%
•8 years and above up to 10 years: 6.00%

Indian Overseas Bank FD Rates

•1 year: 6.50%
•3 years: 6.10%
•5 years: 6.10%
•10 years: 6.10%

Comparing these rates across banks and tenures can help you choose the most suitable fixed deposit for your needs. It's also worth checking for special schemes, senior citizen rates, and any limited-period offers before finalising your investment.

Ultimately, choosing the right fixed deposit depends on your financial priorities, whether it's higher returns, liquidity, or long-term stability. Reviewing all available options carefully and staying up to date on changing rates can help you make a more informed and rewarding investment decision.