Highest PSU FD Rates 2026: IDBI Utsav, SBI, PNB, BoB & Canara Bank Latest Rates
New Delhi, March 17, 2026: Public Sector Banks (PSUs) continue to maintain competitive fixed deposit (FD) interest rates, providing the benchmark for safe, government-backed returns in India. As of mid-March 2026, several PSU banks have introduced special schemes offering higher interest rates than regular FDs, alongside standard offerings, making them the highest-yielding FD options among government-owned banks.
1. Top Special FD Rates in PSU Banks
Among current offerings, IDBI Bank’s “IDBI Utsav FD” stands out as the highest-yielding special FD scheme.
-
Interest Rate: Up to 6.95% per annum
-
Tenure: Varies by scheme (1–3 years commonly)
-
Key Feature: Higher-than-standard interest; limited-time scheme
-
Significance: Currently the top special FD offering from any PSU bank in India
Special FDs like this are typically launched for short durations to attract deposits during specific periods. They surpass standard FD rates offered by other PSU banks, making them noteworthy for reporting purposes.
2. Senior Citizen Premium Rates
Many PSU banks also offer additional interest premiums for senior citizens (60+ years). Current trends indicate:
-
Maximum rate: Up to 7.9% per annum for long-term tenures (e.g., 5 years)
-
Banks offering premium: SBI, PNB, Bank of Baroda, and Canara Bank among others
-
Purpose: Reflects age-based benefits, making senior FD rates the highest across most PSU schemes
This shows that senior citizen deposits continue to outperform regular retail FD rates, providing a clear hierarchy of returns in the PSU banking sector.
3. Standard PSU Bank FD Rates
Apart from special schemes, major PSU banks maintain steady and competitive standard FD rates. The following table summarizes current rates as of March 17, 2026:
| Bank | Regular FD Rate (General) | Senior Citizen Rate | Tenure Range | Notes |
|---|---|---|---|---|
| IDBI Bank | 6.75% | 7.3% | 1–3 years | Special “Utsav FD” offers 6.95% |
| SBI | 6.4%–6.5% | 6.9% | 1–5 years | Standard retail deposits |
| Bank of Baroda | 6.5% | 7.0% | 1–5 years | Medium-term FDs |
| Punjab National Bank (PNB) | 6.4% | 6.9% | 1–5 years | Tiered tenure options |
| Canara Bank | 6.5% | 7.0% | 1–5 years | Multiple tenure options |
| Union Bank of India | 6.6% | 7.1% | 1–5 years | Standard FD schemes |
These figures reflect current interest rates for retail customers, with senior citizens receiving an additional premium in most banks.
4. Key Observations
-
Highest Overall Rate: IDBI Bank’s “Utsav FD” at 6.95% remains the top special FD rate among PSUs.
-
Senior Citizens: Can earn up to 7.9% in select long-term FDs, highlighting the premium applied for age-based deposits.
-
Standard Rates: Most major PSU banks offer 6.4%–6.6% for general customers, ensuring steady, government-backed returns.
-
Tenure Variation: FD rates vary with tenure; medium-term deposits (444-day, 3-year, 5-year) often have slightly higher yields.
5. Conclusion
As of March 17, 2026, PSU banks continue to offer the highest safe FD rates in India, with special schemes and senior citizen premiums pushing yields even higher. IDBI Bank’s “Utsav FD” currently tops the list among special schemes, while SBI, PNB, Bank of Baroda, and Canara Bank maintain strong standard FD rates in the mid-6% range.
These figures serve as the current benchmark for FD interest rates in PSU banks, highlighting the highest returns available in the government banking sector.
Disclaimer: The information provided in this article is for informational purposes only. FD rates and schemes have been collected from publicly available sources, including bank websites and Google search. Readers are advised to verify details with the respective banks before making any investment decisions. The publisher is not responsible for any errors or financial losses.