Several Indian lenders have increased their fixed deposit rates to attract retail investors, with DCB Bank leading the pack at up to 8.05% for seniors, as banks navigate steady policy rates and tight liquidity conditions.
Several Indian banks have begun lifting fixed deposit rates as they compete for retail money in a period of steady policy rates and tight liquidity. DCB Bank is advertising the strongest headline yields among the lenders in focus, while Axis Bank, Union Bank of India and Indian Bank have also refreshed their deposit tables to stay competitive.
According to DCB Bank’s rate card, general customers can earn as much as 7.50% a year and senior citizens up to 8.05% on selected tenures. The highest returns apply to deposits of 24 to 25 months, 34 to 35 months and 60 to 61 months, underlining how smaller private lenders often use richer pricing to draw in stable funding.
Axis Bank has also adjusted its offering, with rates for deposits below ₹3 crore ranging from 3.00% to 6.50% and senior citizens receiving up to 7.00%, according to the bank’s interest-rate page. For deposits between ₹3 crore and ₹5 crore, the lender is offering 6.60% to general customers and 7.10% to senior citizens. The bank says its deposit products run from 7 days to 10 years and the figures are subject to change.
Union Bank of India and Indian Bank have likewise revised their deposit programmes. Union Bank’s new rates, effective August 4, span 2.70% to 6.55% across tenures from 7 days to 10 years, while its highest savings-account tier is 3% for certain high-balance customers. Indian Bank, also effective August 4, is offering up to 6.60% to the general public, 7.15% to senior citizens and 7.40% to super senior citizens on a 500-day deposit.
The broader backdrop is a Reserve Bank of India repo rate held at 5.25% in its August 2026 policy meeting, which leaves lenders focused less on policy easing and more on balancing loan demand against funding pressure. Higher deposit rates can help banks gather retail money, but they also raise funding costs and can squeeze net interest margins if lending rates do not keep pace.
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