Interest rates matter more today than they did a few years ago. With inflation eating into savings and expenses refusing to slow down, Indians are once again looking closely at banks offering up to 8% interest, especially on fixed deposits (FDs).
The good news? Several banks in India currently offer interest rates close to or up to 8%, mainly through small finance banks, senior citizen schemes, and special tenure FDs.
The better news? You don’t need a finance degree to understand them.
This article breaks everything down clearly, logically, and honestly—without hype, fake numbers, or confusing jargon.
Why 8% Interest Has Become a Big Deal Again
For years, bank FD rates stayed modest. Many savers shifted to mutual funds, stocks, or other instruments. But rising interest rates globally, including policy decisions by the Reserve Bank of India (RBI), have changed the situation.
According to RBI data and reporting by The Economic Times and Business Standard, banks raised deposit rates to attract liquidity. As a result, some banks now offer FD interest rates up to 8%, particularly for longer tenures.
And yes, your grandparents were right—fixed deposits are back in fashion.
Important Note Before We Begin
Interest rates change frequently. Banks revise FD rates based on RBI policy, liquidity needs, and market conditions.
All rates mentioned below are indicative and reported by trusted sources like RBI publications, bank websites, The Hindu BusinessLine, and Economic Times.
Always check the bank’s official website before investing.
Top 10 Banks Offering Up to 8% Interest
1. AU Small Finance Bank
AU Small Finance Bank often appears at the top of FD rate charts.
- FD Interest Rate: Up to ~8% for select tenures
- Best For: Long-term deposits
- Why Consider It: Strong growth, RBI-regulated, solid retail focus
AU balances aggressive rates with expanding digital banking services.
2. Ujjivan Small Finance Bank
Ujjivan consistently offers competitive FD returns.
- FD Interest Rate: Up to ~8%
- Senior Citizens: Slightly higher rates
- Highlight: Focus on retail and MSME customers
For cautious investors seeking higher returns without market risk, Ujjivan remains popular.
3. Suryoday Small Finance Bank
Suryoday may not be a household name yet, but savers know it well.
- FD Interest Rate: Up to ~8%
- Tenure Sweet Spot: Mid-to-long term
- Extra Edge: Competitive senior citizen schemes
Sometimes, smaller names deliver bigger interest smiles.
4. Jana Small Finance Bank
Jana frequently revises rates to stay competitive.
- FD Interest Rate: Close to 8% on select tenures
- Customer Base: Retail and salaried professionals
- Trust Factor: Fully regulated by RBI
Jana proves that size doesn’t decide seriousness.
5. Equitas Small Finance Bank
Equitas offers steady FD rates with flexible tenure options.
- FD Interest Rate: Up to ~8%
- Digital Experience: Smooth online FD booking
- Ideal For: First-time FD investors
Convenience meets competitive returns here.
6. Unity Small Finance Bank
Unity entered the market recently but made noise quickly.
- FD Interest Rate: Up to ~8%
- Focus Area: Fixed deposits and savings accounts
- Why It Stands Out: Aggressive deposit strategy
New player, serious intent.
7. IDFC First Bank
IDFC First Bank focuses more on stability than extreme rates.
- FD Interest Rate: Around 7.5%–7.75%
- Best For: Risk-averse savers
- Strength: Transparent policies and strong capital base
Not always the highest, but very consistent.
8. RBL Bank
RBL Bank offers competitive FD options during special periods.
- FD Interest Rate: Up to ~7.8%
- Senior Citizens: Extra interest
- Suitable For: Medium-term investors
A balanced choice between private and small finance banks.
9. Bandhan Bank
Bandhan Bank remains conservative but reliable.
- FD Interest Rate: Around 7.75%
- Customer Trust: Strong rural and retail presence
- Focus: Stability over aggressive pricing
Sometimes peace of mind matters more than decimals.
10. State Bank of India (SBI)
Yes, SBI still deserves a mention.
- FD Interest Rate: Lower than small finance banks
- Best For: Safety-first investors
- Trust Level: Government-backed
SBI may not give 8%, but it gives sleep.
Which Bank Gives an 8% Interest Rate?
Banks that have offered or currently offer close to 8% interest include:
- AU Small Finance Bank
- Ujjivan Small Finance Bank
- Suryoday Small Finance Bank
- Jana Small Finance Bank
These rates usually apply to specific tenures and sometimes to senior citizens.
Which Bank Gives an 8% Interest Rate on FD?
As per reporting by Economic Times and bank disclosures, small finance banks lead in this category.
Large public and private banks generally stay below this mark.
Which Bank Pays 8% Interest?
Banks that pay up to 8% interest typically do so through:
- Long-term FDs (2–5 years)
- Special promotional schemes
- Senior citizen deposits
Again, small finance banks dominate this space.
Which Bank Gives 9.5% Interest on FD?
Here’s the honest truth:
No mainstream bank consistently offers 9.5% FD interest today.
However, some NBFCs (non-banking financial companies) and older special schemes have touched 9%–9.5%, as reported earlier by Business Standard.
NBFCs are not banks, and they carry different risk profiles. Always evaluate safety before chasing high numbers.
If someone promises 9.5% casually, read the fine print twice.
Are High-Interest FDs Safe?
Yes—but with context.
- All banks listed here operate under RBI regulation
- Deposits up to ₹5 lakh are insured under DICGC
- Small finance banks carry slightly higher risk than PSU banks
Higher interest always demands a bit more attention.
How to Choose the Right Bank for FD
Ask yourself three simple questions:
- Do I want maximum returns or maximum safety?
- Am I investing short-term or long-term?
- Do I need monthly interest payouts or maturity returns?
If you answer honestly, the right bank becomes obvious.
Final Thoughts
The race for 8% interest rates has made fixed deposits exciting again. Small finance banks now challenge traditional giants, and savers finally have options.
Still, smart investing never means blind chasing. Balance returns, safety, and liquidity. And always verify rates directly from official sources.
After all, money should work hard—but it should also let you sleep peacefully.
