The Reserve Bank of India raised the repo rate to 5.50% on 7 October 2026. Following this, many banks revised their fixed deposit rates to attract customers. As of November 2026, DCB Bank offers the highest maximum return of 7.50% per annum among both public and private sector banks.

The Reserve Bank of India (RBI) raised the policy repo rate by 25 basis points to 5.50% at its Monetary Policy Committee (MPC) meeting on 7 October 2026. This was the central bank's first rate hike in 44 months, after it last raised the repo rate to 6.50% in February 2023.

The repo rate is the interest rate at which commercial banks borrow short-term funds from the RBI. A change in this rate can influence banks' lending and deposit rates. Following a repo rate hike, a few banks have revised their fixed deposit (FD) interest rates to attract deposits and manage their funding requirements.

However, FD rate revisions are not automatic and depend on individual banks' decisions. For depositors looking to lock in returns, here's a comparison of the highest FD interest rates offered by public and private sector banks, along with their rates for 1-year, 3-year, and 5-year tenures.

Which PSU banks offer the highest FD interest rates?

Bank of India and Punjab & Sind Bank offer the highest FD rate of 6.85% per annum among the public sector banks. The highest slab means the maximum interest rate a bank offers on any eligible FD tenure, not necessarily for a 1-year, 3-year, or 5-year deposit.

*Source: paisabazaar; Interest rates as of 28 October 2026; Excludes senior citizen FD rates

1-year FD: Bank of India and Indian Overseas Bank offer the highest rate of 6.50% per annum.

3-year FD: Bank of India offers the highest rate of 6.70% per annum.

5-year FD: Bank of Baroda offers the highest rate of 6.30% per annum.

Which private banks offer the highest FD interest rates?

DCB Bank offers the highest FD rate of 7.50% per annum, followed by Bandhan Bank at 7.45%.

*Source: paisabazaar; Interest rates as of 28 October 2026; Excludes senior citizen FD rates

1-year FD: SBM Bank offers the highest rate of 7.10% per annum.

3-year FD: City Union Bank offers the highest rate of 7.30% per annum.

5-year FD: DCB Bank offers the highest rate of 7.50% per annum.

Public or private: Which bank offers the highest FD rates?

Among public and private sector banks, DCB Bank offers the highest maximum FD rate of 7.50% per annum at the start of November 2026.