Synopsis: In June 2026, fixed deposit rates were revised at four banks, with top returns hitting 8.05%. This shows a difference between safer Public Sector bank returns and the higher yields from private and small finance banks.
Fixed Deposits are still super safe and popular in India. They give guaranteed returns, so they’re great for investors who prefer less risk, like conservative investors and retirees. In June 2026, four banks revised their FD rates. Ujjivan Small Finance Bank and DCB Bank are giving the best deals now, up to 8.05% for senior citizens on certain periods.
Bank-wise FD Interest Rates
1. DCB Bank FD Interest Rates (2026)
FD rates start at 3.75% for short tenures and increase with maturity. The highest return is up to 8.05% for senior citizens plus on 60 months to 61 months, while 1 to 3 year deposits offer the best overall returns around 7% to 7.5%. Longer tenures provide stable but slightly lower yields. The revised rates are effective from June 1, 2026.
2. Union Bank of India FD Interest Rates (2026)
FD rates start from 2.70% for short tenures (7 to 14 days) and gradually increase with maturity. The highest rate is 6.65% at 555 days, while most 1 to 3 year deposits offer around 6.10% to 6.25%. Longer tenures up to 10 years provide stable returns of about 6.00%. The revised rates are effective from June 1, 2026.
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3. Ujjivan Small Finance Bank FD Interest Rates (2026)
FD rates start at 3.50% for short tenures (7 to 29 days) and increase with maturity. The highest return is 8.05% for senior citizens in the 3 to 3.5 year range. Most 1 to 3 year deposits offer strong returns of 7.25% to 7.90%, while long-term deposits up to 10 years provide stable yields of around 6.50% to 7.00%. The revised rates are effective from June 5, 2026.
4. Punjab National Bank (PNB) FD Interest Rates (2026)
FD rates start at 3.00% for short tenures (7 to 45 days) and gradually increase with maturity. The highest returns reach 7.40% for super senior citizens at 444 days, while most 1 to 3 year deposits offer around 6.30% to 6.85% for general customers. Long-term deposits up to 10 years provide stable returns of about 6.00% to 6.80%, depending on the investor category. The revised rates are effective from June 1, 2026.
Key Takeaways
- Highest FD interest rate: Up to 8.05%
- Top performers: Ujjivan Small Finance Bank & DCB Bank
- PSU banks (PNB, Union Bank) offer stable but lower returns
- Small finance banks continue to dominate high-yield FD segment
- Attractive opportunities for senior citizens due to additional rate benefits
Bottom line
In June 2026, fixed deposit rates show a clear difference. Small finance and private banks give higher yields, up to 8.05%, from Ujjivan and DCB Bank. Meanwhile, PSU banks such as PNB and Union Bank offer safer yet lower returns. So, fixed deposits remain a balanced choice, blending growth with capital security.
Written By Ameet S
