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Banks revise FD rates in August 2026: Check which bank is offering the highest return

Upstox
By Upstox News Desk

3 min read | Updated on August 24, 2026, 12:02 IST

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SUMMARY

Among the banks in the comparison, DCB Bank offers the highest regular rate of 7.50% on select tenures, while its senior-citizen rates go up to 8.05%.

banks revise fd rates in august 2026

Here’s a simple comparison of the latest rates for deposits below ₹3 crore. | Image: Shutterstock.

Several banks have revised their Fixed Deposit (FD) interest rates in August 2026. If you are planning to invest in an FD, the interest rate you get will depend on the bank, tenure and whether you are a regular customer or a senior citizen.

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Here’s a simple comparison of the latest rates for deposits below ₹3 crore.
DCB Bank: Offers some of the highest rates, with 7.50% for general customers on select tenures, including 24-25 months, 34-35 months and 60-61 months. Senior citizens can get up to 8.05%.
Federal Bank: General customers can earn up to 6.70%, while senior citizens can get up to 7.20% on a 48-month FD. Indian Bank: Rates go up to 6.65% on select special tenures after the August revision. Its 555-day special FD now offers 6.65%.
Union Bank of India: Offers up to 6.55% on its callable deposits, while certain non-callable deposits can earn higher rates. Special tenures such as 400, 444 and 555 days have separate rates.
Indian Bank: Rates go up to 6.65% on select special tenures after the August revision. Its 555-day special FD now offers 6.65%.
HDFC Bank: Rates range from 2.75% to 6.50% for regular customers, with the highest rate of 6.50% available for tenures above 3 years and below 4 years 7 months.

Banks revise FD rates in August 2026: Where are the best returns?

BankHighest Rate (General)Highest Rate (Senior Citizen)Tenure Offering Highest Rate
DCB Bank7.50%8.05%24-25 months, 34-35 months and 60-61 months
Federal Bank6.70%7.20%48 months
Indian Bank6.65%7.15%*Ind Grow FD (555 days)
Union Bank of India6.55%Additional benefit available555 days
HDFC Bank6.50%7.10%3 years 1 day to less than 4 years 7 months

FD rates vary significantly by tenure, deposit type and whether the deposit is callable or non-callable. Senior-citizen rates generally apply only to resident customers.

Insurance cover on bank deposits

Along with comparing FD interest rates, depositors should also understand the deposit insurance cover available on bank deposits. In India, eligible deposits with insured banks are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 lakh per depositor, per bank. This cover includes both the principal amount and interest, subject to the applicable rules.

So, if you have multiple eligible deposits such as savings accounts, current accounts and fixed deposits with the same bank, they are generally considered together for the ₹5 lakh insurance limit. Deposits held with different banks are insured separately.

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Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Investors should do their own research or consult a registered financial advisor before making investment decisions.

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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