Is this the right time to invest in fixed deposits? Know the latest interest rates of major banks including SBI, HDFC and PNB:

New Delhi. This last week of March 2026 is proving to be very important for fixed deposit (FD) investors after the decision of the Reserve Bank of India (RBI) to keep the repo rate stable. There is an atmosphere of stability in the market as the inflation rate in the country is close to 2% and the GDP growth rate is at a strong level of 7.4%. Experts believe that there could be a possibility of interest rate cuts in the coming months, so this is a great opportunity for investors to lock in the current high rates.

Condition of public sector banks: respectable returns with security

Public sector banks like State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda are currently offering attractive rates on select tenures.

Interest Rates: Rates for general customers range between 6.4% to 6.6%.

Senior Citizens: Senior citizens are getting additional benefit of 0.45% to 0.70% as usual.

Special FD: Many government banks are running special tenure schemes like 390 days, 444 days and 800 days, where interest is up to 0.25% higher than normal FD.

Private and Small Finance Bank: Highest profits are available here

Private sector giants like HDFC and ICICI Bank are offering interest ranging from 6.5% to 6.9% for a tenure of 18 months to 3 years. At the same time, if you can take a little risk, then small finance banks can prove to be a ‘mine of profit’ for you.

Small Finance Banks: Banks like Unity and Suryoday are offering interest of more than 8% on some special schemes.

Security: Remember that your deposits up to ₹5 lakh (principal + interest) in every bank are completely safe and insured as per DICGC norms.

Tax and penalty: Know these important rules before investing

Before investing money in FD, it is important to understand these technical aspects so that you do not have to regret later:

Mathematics of TDS: If your annual interest exceeds ₹40,000 (₹50,000 for senior citizens), the bank will deduct TDS. To avoid this, eligible persons must submit Form 15G/15H.

Pre-Mature Withdrawal: If you withdraw money before the completion of the tenure, the bank usually charges a penalty of 0.5% to 1%.

Non-callable FD: Some banks offer ‘non-callable’ FD in exchange for higher interest, which you cannot break under any circumstances before maturity.

Amar Ujala’s special advice: Adopt ‘laddering’ technique

Often investors block all the money in a single FD for a long time. We recommend that you adopt ‘FD Laddering’. Divide your total amount into three parts and deposit them separately for periods of 1 year, 2 years and 3 years. With this you will get liquidity every year and you will also be able to take advantage of changing interest rates.