Fixed Deposit Interest Rates February 2026: Despite the uncertainty in the market, fixed deposits or FDs are still the first choice of most people in the country as a safe investment. The popularity of FDs remains unchanged among middle-class and senior investors due to the certainty of fixed interest at the end of a specific period. However, depositors are recalculating after several government and private banks revised their FD interest rates in February 2026. According to banking circles, the interest rate of fixed deposits is determined depending on the Reserve Bank’s repo rate, inflation rate and demand for credit. That is why several important banks have changed their FD interest rates this month. As a result, it is now very important to know which bank will give you more benefits if you invest in it.
Higher interest opportunities in small finance banks
Small finance banks usually offer higher interest rates than big banks. This trend has become more evident in February 2026.
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Utkarsh Small Finance Bank: Senior citizens are being offered up to 8 percent interest on three-year FDs.
Jana Small Finance Bank: Senior depositors are being offered up to 8 percent interest for two to three years.
Equitas Small Finance Bank: The new rates have come into effect from February 2. Interest rates ranging from 3.50 percent to 7.20 percent are being offered for different tenors. The highest interest rate is 7.20 percent for 888-day FDs.
According to experts, small finance banks are becoming an important option for those looking for higher interest rates. However, it is important to check the stability and regulations of the bank before investing.
New interest rates in large private and public sector banks
Large banks have also updated their FD interest rates. Although the interest rates are slightly lower than small finance banks, many people give more importance to these banks in terms of security.
ICICI Bank: Offering a maximum interest rate of 7.1 percent for tenors of three years 1 day to 10 years.
Canara Bank: Announces a maximum interest rate of 7 percent for a special tenor of 555 days.
New interest structure at Punjab National Bank
Public sector bank Punjab National Bank (PNB) has implemented new FD interest rates from February 1, 2026.
- The interest rate for general depositors is from 3 percent to 6.40 percent.
- For senior citizens, it is from 3.50 percent to 6.90 percent.
- The highest interest benefit is available on 390-day FDs.
- Being a government bank, many customers still prefer PNB due to security.
Indian Bank’s new ‘IND Secure’ scheme
Indian Bank has launched new interest rates from February 4.
- Interest is available from 2.80 percent to 6.95 percent for different tenors.
- A new 444-day FD scheme called ‘IND Secure’ has been launched.
- In this scheme, general customers are getting 6.45 percent interest and senior citizens are getting 6.95 percent interest.
- Banking experts say that such special schemes offer higher interest rates for a fixed period.
Repo rate unchanged, FD interest rate cut unlikely
On February 6, 2026, the Reserve Bank of India kept the repo rate unchanged at 5.25 percent in its monetary policy meeting. This has reduced the pressure on banks to reduce interest rates.
Note: Share and investment related reports are just market observations. These are not investment advice. Before investing in the market, be sure to study and take expert help.