If you’re planning to park your savings in a Fixed Deposit (FD), this is a good time to compare interest rates before locking in your money. Following recent monetary policy developments and changing liquidity conditions, several Indian banks have updated their fixed deposit interest rates.
While the changes may seem small, even a 0.25%–0.50% difference can significantly increase your earnings over a long investment period. Whether you’re investing ₹1 lakh or ₹10 lakh, choosing the right bank and tenure can make a noticeable difference in your maturity value.
In this article, we’ll look at four banks that revised their FD interest rates in July 2026, compare their latest offerings, and help you decide which option may suit your investment goals.
1. Punjab National Bank (PNB)
Punjab National Bank has revised its FD rates across multiple tenures, with the 400-day Fixed Deposit continuing to offer one of the highest returns among its standard deposit options.
Latest PNB FD Interest Rates
| Tenure | General Citizens | Senior Citizens |
| 1 Year | 6.70% | 7.20% |
| 400 Days | 6.95% | 7.45% |
| Above 1 Year to 2 Years | 6.80% | 7.30% |
| Above 2 Years to 3 Years | 6.50% | 7.00% |
| Above 3 Years to 5 Years | 6.40% | 6.90% |
| 5 Years | 6.50% | 7.00% |
Why Choose PNB?
- Attractive 400-day special deposit
- Higher interest for senior citizens
- Government-owned bank with a large branch network
- Suitable for conservative investors
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2. Union Bank of India
Union Bank has also updated its FD interest rates, offering competitive returns on medium-term deposits.
Latest Union Bank FD Interest Rates
| Tenure | General Citizens | Senior Citizens |
| 1 Year | 6.60% | 7.10% |
| 399 Days | 6.85% | 7.35% |
| Above 1 Year to 2 Years | 6.70% | 7.20% |
| Above 2 Years to 3 Years | 6.50% | 7.00% |
| Above 3 Years to 5 Years | 6.40% | 6.90% |
| 5 Years | 6.50% | 7.00% |
Highlights
- Competitive returns on the 399-day FD
- Flexible investment options
- Additional interest benefits for senior citizens
- Ideal for medium-term investments
3. HDFC Bank
HDFC Bank continues to offer attractive FD returns, particularly for investments of three to four years.
Latest HDFC Bank FD Interest Rates
| Tenure | General Citizens | Senior Citizens |
| 1 Year to Less Than 15 Months | 6.25% | 6.75% |
| 15 Months to Less Than 18 Months | 6.35% | 6.85% |
| 18 Months to Less Than 3 Years | 6.45% | 6.95% |
| 3 Years to Less Than 4 Years 7 Months | 6.50% | 7.00% |
| 5 Years to 10 Years | 6.15% | 6.65% |
Why Investors Prefer HDFC Bank
- Strong digital banking experience
- Stable returns
- Wide range of FD tenure options
- Trusted private sector bank
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4. Bank of India
Bank of India continues to attract depositors with its higher rates on selected tenures, especially the Green Fixed Deposit.
Latest Bank of India FD Interest Rates
| Tenure | General Citizens | Senior Citizens |
| 1 Year | 6.50% | 7.00% |
| 2 Years | 6.60% | 7.10% |
| 999 Days (Green FD) | 6.85% | 7.35% |
| 3 Years | 6.70% | 7.45% |
| 5 Years | 6.25% | 7.00% |
Benefits
- Attractive Green Deposit scheme
- Higher returns for senior citizens
- Government-backed public sector bank
- Suitable for medium-term investors
Which Bank Offers the Highest FD Rate?
| Bank | Highest Rate (General) | Senior Citizen Rate | Best Tenure |
| Punjab National Bank | 6.95% | 7.45% | 400 Days |
| Union Bank of India | 6.85% | 7.35% | 399 Days |
| Bank of India | 6.85% | 7.45% | 999 Days |
| HDFC Bank | 6.50% | 7.00% | 3 Years–4 Years 7 Months |
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Conclusion
Several leading banks revised their fixed deposit interest rates in July 2026, giving investors new opportunities to earn better returns on their savings. Punjab National Bank, Union Bank of India, HDFC Bank, and Bank of India now offer competitive rates across different tenures, with special benefits for senior citizens.
Before investing, compare tenure-wise returns, check all applicable terms and conditions, and choose an FD that aligns with your financial goals rather than simply selecting the highest advertised interest rate.