Fixed Deposit Rates

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A fixed deposit remains one of the most reliable investment options, typically offering higher interest rates than a standard savings account. The principal amount is locked until the chosen maturity date, providing predictable returns regardless of market volatility.

Investors across all age groups continue to favour fixed deposits because returns are independent of fluctuating stock indices and market conditions. In 2026, amid ongoing economic uncertainty, fixed deposit holdings grew by over Rs. 2.8 lakh crores, underscoring their enduring appeal as a stable savings vehicle.

Why choose a fixed deposit?

• Guaranteed returns at a predetermined rate until maturity, making it one of the most stable investment avenues.
• Interest rates that are generally higher than those offered by regular savings accounts or many other low-risk options.
• Easy access to liquidity in emergencies through a loan against the fixed deposit, eliminating the need for a personal loan.
• Flexible tenures ranging from 7 days to 10 years, allowing investors to choose an amount and duration that suits their goals.

Most investors select fixed deposits based on prevailing interest rates. These rates influence returns in the following ways:

• Interest is calculated on the invested sum at the rate fixed at the time of deposit. Locking in higher rates at the outset maximises growth over the tenure.

Even if the issuer later adjusts its rates, the original rate agreed upon remains unchanged for that deposit. Returns stay insulated from broader market movements.

Factors influencing fixed deposit interest rates

• Rates vary by issuer. NBFCs and finance companies often provide higher rates than banks or post office schemes.
• The Reserve Bank of India’s liquidity measures in recent years have led to successive reductions in the repo rate, placing downward pressure on deposit rates across the sector.
• Longer tenures generally attract higher interest rates, while shorter periods offer comparatively lower returns.
• Payout frequency also matters: interest rates tend to be higher when the full amount is paid at maturity rather than through periodic interest disbursements.
• Issuers frequently offer preferential rates to senior citizens, employees, and existing customers.
• Renewal bonuses, typically around 0.10%, are commonly added when deposits are rolled over.

In 2026, the average interest rate offered by most financiers stands at 5–6%. However, select institutions such as Bajaj Finance Fixed Deposit continue to provide more attractive rates: up to 7.60% for new customers, 7.70% for existing clients, and up to 7.85% for senior citizens. A renewal bonus of 0.10% on the applicable rate is also available.

Using a fixed deposit calculator

Several providers, including Bajaj Finance, now offer an online fixed deposit interest calculator. This tool enables investors to project returns in advance by entering details such as investment amount, tenure, interest rate, and payout preference. The estimated maturity amount and interest appear within seconds.

The calculator also allows easy comparison of schemes across different issuers, helping investors identify the most suitable option quickly. Tenures from 12 to 60 months are available, with a choice of interest payout at maturity or at regular intervals. Both existing and new customers can open deposits online with minimal effort.

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