Banks FD Rate: The Reserve Bank of India (RBI) kept the repo rate at 5.25% in this monetary policy meeting, so there is little hope that banks will reduce the interest rate on their FDs soon.
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Banks FD Rate: The Reserve Bank of India (RBI) kept the repo rate unchanged at 5.25% during its monetary policy meeting held between February 4-6. Let’s explore how this decision on the repo rate will impact your bank fixed deposit returns.
First, let’s note that since the RBI kept the repo rate unchanged at 5.25% during its Monetary Policy Committee meeting, banks are unlikely to reduce interest rates on their fixed deposit schemes anytime soon.
Equitas Small Finance Bank
Equitas Small Finance Bank has revised its fixed deposit interest rates effective February 2, 2026. The bank is offering interest rates ranging from 3.50% to 7.20% for different tenures. The highest rate of 7.20% is available for 888-day FDs.
The bank is offering interest rates ranging from 3.50% to 7.20% on different tenures. The highest rate of 7.20% is available for 888-day FDs.
Indian Bank
Indian Bank has revised its interest rates on fixed deposits effective February 4, 2026. Depositors with different time periods are receiving interest rates ranging from 2.80% to 6.95%. The bank has launched a new scheme called IND Secure, which matures in 444 days. Under this scheme, general public deposits receive interest at the rate of 6.45% and senior citizens at the rate of 6.95%.
Punjab National Bank
Punjab National Bank (PNB) revised its interest rates on February 1, 2026. This public sector bank is offering interest rates ranging from 3% to 6.40% for general public deposits and between 3.50% and 6.90% for senior citizens. The highest interest rate of 6.40% and 6.90% is being offered on deposits with a tenure of 390 days.
These banks are also offering excellent returns on FDs.
1. Utkarsh Small Finance Bank is offering an interest rate of 8% on its three-year FDs for senior citizens.
2. Jana Small Finance Bank is offering an interest rate of 8% on its two- to three-year senior citizen FDs.
3. ICICI Bank is offering its highest FD interest rate at 7.1% for terms ranging from 3 years and 1 day to 10 years.
4. Canara Bank is offering its highest FD interest rate at 7% on a tenure of 555 days.
Unlike the stock market, fixed deposits remain one of the safest investment options. The RBI periodically changes the repo rate, and banks then adjust FD rates based on inflation or credit demand. In February 2026, top Indian banks like Punjab National Bank, Indian Bank, and Equitas SFB revised their FD rates.
