Fixed Deposit Rates in January 2026: Small Finance Banks Lead, NSC Offers Competitive Returns

In mid-January 2026, fixed deposit (FD) rates vary across banks, with small finance banks offering higher returns up to 8.1% for senior citizens, while major private and public sector banks provide rates mostly between 6% and 7.5%. Axis Bank and Kotak Mahindra Bank have revised their FD rates, with senior citizens earning up to 7.2%. The government-backed National Savings Certificate (NSC) offers a competitive 7.7% interest rate with tax benefits and a five-year lock-in period, making it an attractive alternative to many bank FDs.