Personal Finance News
Canara Bank to Bank of Baroda: 5 banks that revised their FD interest rates in January
8 min read | Updated on January 12, 2026, 16:34 IST
SUMMARY
Canara Bank also revised its interest rates on FDs effective from January 5, 2026. The bank is currently offering rates between 3% and 6.50% on FDs for the general public and between 3% and 7% on FDs for senior citizens.
Most small finance banks (SFBs) generally offer higher interest rates than traditional banks due to their unique structure.
In January, as many as five banks revised their fixed deposit (FD) interest rates, including Bank of Baroda, Bank of Maharashtra, Canara Bank, Tamilnad Mercantile Bank, and Jana Small Finance Bank.
FD rates saw a sharp decline throughout 2025, mainly due to multiple repo rate cuts by the Reserve Bank of India (RBI). During the year, the RBI reduced the repo rate by a cumulative 125 basis points, lowering borrowing costs for banks and enabling them to pass on the benefit to borrowers through cheaper loans.
As lending rates eased, banks also trimmed FD rates, since there was less need to offer higher returns on deposits. Following the RBI’s latest repo rate cut in December 2025, several major banks, including State Bank of India, HDFC Bank, ICICI Bank, and Axis Bank, reduced their FD interest rates.
Here’s a closer look at the FD rate changes announced in January 2026.
Jana Small Finance Bank
Jana Small Finance Bank revised its interest rates on January 10. It is still offering up to 8% interest on FDs for senior citizens. The SFB is currently offering rates ranging from 4.50% to 7.77% on FDs for the general public, while it is offering rates between 4.50% and 8% for senior citizens.
| Tenure | Regular FD Interest Rate (% p.a.) | Senior Citizen Interest Rate (% p.a.) |
|---|---|---|
| 7 Days – 14 Days | 4.50 | 4.50 |
| 15 Days – 60 Days | 5.25 | 5.25 |
| 61 Days – 90 Days | 5.25 | 5.25 |
| 91 Days – 120 Days | 5.77 | 5.77 |
| 121 Days – 180 Days | 6.00 | 6.00 |
| 181 Days – 270 Days | 6.50 | 7.00 |
| 271 Days – 365 Days | 7.00 | 7.50 |
| >1 Year – 2 Years (730 Days) | 7.25 | 7.75 |
| >2 Years – 3 Years (1095 Days) | 7.50 | 8.00 |
| >3 Years – <5 Years | 7.77 | 7.77 |
| 5 Years (1825 Days) | 7.77 | 7.77 |
| >5 Years – 10 Years | 6.50 | 7.00 |
Bank of Baroda revised FD rates
On January 5, Bank of Baroda revised its FD interest rates across tenures. The bank currently offers interest rates ranging from 3.50% to 6.45% for the general public, and interest rates between 4% and 7% for senior citizens. Additionally, it offers interest rates between 4% and 7.05% on FDs for Super Senior Citizens.
The highest rate of interest is offered on the bank’s Square Drive Deposit Scheme, which has a tenure of 444 days.
| Tenors | Residents / General Public | Resident Indian Sr. Citizen | Resident Super Senior Citizen |
|---|---|---|---|
| 7 days to 14 days | 3.50 | 4.00 | 4.00 |
| 15 days to 45 days | 3.50 | 4.00 | 4.00 |
| 46 days to 90 days | 5.00 | 5.50 | 5.50 |
| 91 days to 180 days | 5.00 | 5.50 | 5.50 |
| 181 days to 210 days | 5.50 | 6.00 | 6.00 |
| 211 days to 270 days | 5.75 | 6.25 | 6.25 |
| 271 days and above and less than 1 year | 6.00 | 6.50 | 6.50 |
| 1 year | 6.10 | 6.60 | 6.60 |
| Above 1 year to 400 days | 6.25 | 6.75 | 6.85 |
| Above 400 days and up to 2 Years except 444 Days | 6.25 | 6.75 | 6.85 |
| Above 2 Years and up to 3 Years | 6.25 | 6.75 | 6.85 |
| Above 3 Years and up to 5 Years | 6.30 | 6.90 | 7.00 |
| Above 5 Years and up to 10 Years | 6.00 | 7.00 | 7.00 |
| Above 10 years MACAD only | 5.50 | 6.00 | 6.00 |
| Bob Square Drive Deposit Scheme 444 Days | 6.45 | 6.95 | 7.05 |
Bank of Maharashtra latest FD rates
Bank of Maharashtra updated its FD rates on January 7, 2026. It offers interest rates ranging from 2.6% to 6.65% on FDs for the general public, with an additional 0.50% for senior citizens. The highest interest rate of 6.65% is offered on a special scheme with a tenure of 400 days.
| Tenure / Scheme | Below ₹3 crore | Senior Citizens (+0.50%) |
|---|---|---|
| Special Schemes | ||
| 400 days | 6.65 | 7.15 |
| 1777 days (Green Deposit) | 6.05 | 6.55 |
| Regular Schemes | ||
| 7–30 days | 2.60 | 3.10 |
| 31–45 days | 3.00 | 3.50 |
| 46–90 days | 4.00 | 4.50 |
| 91–119 days | 4.25 | 4.75 |
| 120–180 days | 5.00 | 5.50 |
| 181–270 days | 5.25 | 5.75 |
| 271–364 days | 5.50 | 6.00 |
| 365 days / One year | 6.20 | 6.70 |
| Above 1 year to 2 years | 6.15 | 6.65 |
| Above 2 years to 3 years | 5.25 | 5.75 |
| Above 3 years to 5 years | 5.00 | 5.50 |
| Above 5 years | 5.25 | 5.75 |
Canara Bank
Canara Bank also revised its interest rates on FDs effective from January 5, 2026. The bank is currently offering rates between 3% and 6.50% on FDs for the general public and between 3% and 7% on FDs for senior citizens.
| Term Period | General Public (% p.a.) | Senior Citizen (% p.a.) |
|---|---|---|
| 7 Days to 45 Days | 3.00 | 3.00 |
| 46 Days to 90 Days | 4.00 | 4.00 |
| 91 Days to 179 Days | 4.25 | 4.25 |
| 180 Days to 269 Days | 5.25 | 5.75 |
| 270 Days to < 1 Year | 5.50 | 6.00 |
| 1 Year to 1 Year 3 Months (Except 444 Days) | 6.25 | 6.75 |
| 444 Days | 6.45 | 6.95 |
| 555 Days | 6.50 | 7.00 |
| > 1 Year 3 Months to < 2 Years (Except 555 Days) | 6.25 | 6.75 |
| 2 Years to < 3 Years | 6.25 | 6.75 |
| 3 Years to < 5 Years | 6.25 | 6.75 |
| 5 Years to 10 Years | 6.25 | 6.75 |
Tamilnad Mercantile Bank (TMB)
Tamilnad Mercantile Bank (TMB) revised its interest rates on FDs on January 8, 2026. It is offering an interest rate of up to 7.10%, starting from 4%, on FDs for the general public. For senior citizens, it offers rates between 4% and 7.50%.
| Period | General Public (% p.a.) | Senior Citizens (% p.a.) |
|---|---|---|
| 7–14 days | 4.00 | 4.00 |
| 15–29 days | 4.25 | 4.25 |
| 30–45 days | 4.50 | 4.50 |
| 46–60 days | 4.80 | 4.80 |
| 61–90 days | 4.80 | 4.80 |
| 91–120 days | 5.80 | 5.90 |
| 121–179 days | 5.80 | 5.90 |
| 180–270 days | 6.30 | 6.40 |
| 271 days to less than 1 year | 6.40 | 6.50 |
| 1 Year | 6.80 | 6.90 |
| Above 1 year to less than 456 days | 6.80 | 6.90 |
| 456 days (TMB456 Special Deposit Scheme) | 7.10 | 7.20 |
| Above 456 days to less than 2 years | 6.60 | 6.70 |
| 2 years to less than 3 years | 6.60 | 6.70 |
| 3 years to 10 years | 6.60 | 6.70 |
Most small finance banks (SFBs) generally offer higher interest rates than traditional banks due to their unique structure. Importantly, deposits with SFBs are also secured under the RBI’s Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, up to ₹5 lakh per depositor.
Many SFBs, including Jana Small Finance Bank, ESAF Small Finance Bank, Slice Small Finance Bank and Suryoday Small Finance Bank, are offering up to 8.10% on FDs for senior citizens. Customers must check and compare the available rates before booking the FDs.
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