Small Finance Banks Offer Up to 8.1% Fixed Deposit Rates in Early 2026

In early 2026, fixed deposit (FD) rates vary widely, with small finance banks offering higher returns of up to 8.1% compared to major public and private sector banks, which generally provide rates between 6% and 7.5%. Senior citizens receive additional interest benefits, especially at small finance banks and select corporate FDs from NBFCs and housing finance companies, where credit ratings guide risk assessment. Experts suggest locking in current rates amid expectations of future rate declines.