SBI vs HDFC vs ICICI vs PNB FD Rates 2026: Which Bank Actually Pays More?

By Nitish Bharadwaj · Published Sep 29, 2026 · 6 min

SBI, HDFC Bank, ICICI Bank and PNB all price regular fixed deposits within a narrow 6.25%-6.50% band in September 2026, after two years of repo rate cuts compressed the gap between public and private lenders. This guide lines up their 1-year, 3-year and 5-year rates side by side, plus the special-tenure deposits each uses to advertise a higher headline number, and the senior citizen premium at each. It also covers why Bank of Baroda, Bank of India and small finance banks pay more, and how to pick without chasing a rate that vanishes at renewal.

Two years of RBI repo rate cuts have squeezed fixed deposit rates at India's biggest banks into a narrow band. SBI, HDFC Bank, ICICI Bank and PNB all now sit within about 0.25% of each other on regular deposits, which means the bank you already have a salary or savings account with is probably not costing you much anymore. But small, real differences remain by tenure, and each bank pushes a special-tenure deposit as its headline rate that few depositors actually book. Here is where the four largest lenders actually stand this month, and who pays more than all of them.

Regular FD Rates: SBI vs HDFC vs ICICI vs PNB (September 2026)

These are general-public (non-senior) rates on standard fixed deposits, as published on each bank's own rate card this month. Rates are revised without notice, sometimes monthly, so treat this as a snapshot rather than a number to lock into a calculator months from now.

Notice that none of the four pays its highest advertised rate on a plain 1-year or 5-year deposit. SBI's 6.45% and PNB's 6.60% both belong to a specific 444-day tenure, which is why the number you see in an ad or on a comparison site is often higher than what you'd actually get on the tenure you want. Always check the rate for your exact tenure, not the bank's best headline figure.

Senior Citizens Get More — But Not Equally

All four banks add a premium for senior citizens, but the size of it and the tenure it applies to differ enough to matter.

Why the Big Four Are Suddenly So Close

This convergence isn't a coincidence. After the RBI held the repo rate through 2026 following earlier cuts, banks lost the room to compete aggressively on deposit rates the way they did when credit growth was outpacing deposit growth. Our FD and savings rates guide after the RBI's repo rate hold covers what's driving this and what typically happens to FD pricing in the two or three quarters after a hold.

Who Pays More Than All Four

If the goal is simply the highest safe return, none of these four is the best choice. Bank of Baroda (up to 6.75%) and Bank of India (up to 6.85%) both beat this table on their top slabs, and small finance banks go further still — see our small finance bank FD rate roundup for names paying close to 8% within the same DICGC-insured ₹5 lakh safety net. For a government-backed alternative with no market risk, the RBI Floating Rate Savings Bond is also worth comparing, though it carries a 7-year lock-in that a bank FD doesn't.

How to Actually Pick a Bank

• Match the rate to your real tenure — a bank's best number is usually on an odd-day special deposit, not the 1-, 3- or 5-year slot most people actually want.
• If you're locking in for the long term, consider FD laddering instead of parking everything in one tenure at today's rate.
• Deposits above roughly ₹40 lakh in one bank cross the TDS-exemption threshold quickly — see how splitting FDs across banks can legally reduce TDS.
• Every rupee is covered only up to ₹5 lakh per bank under DICGC deposit insurance — factor that into how much you keep in any single bank.