DCB Bank offers highest fixed deposit rates after RBI repo rate hike
Private sector lender DCB Bank leads with a 7.50 per cent interest rate following the central bank's recent policy change.
The Reserve Bank of India (RBI) increased the policy repo rate by 25 basis points to 5.50 per cent during its Monetary Policy Committee (MPC) meeting on 7 October 2026, according to Mint.
This move marks the first rate hike in 44 months, with the previous increase to 6.50 per cent occurring in February 2023. The repo rate serves as the interest rate for short-term borrowing by commercial banks from the RBI.
In the private sector, DCB Bank provides the highest maximum fixed deposit (FD) rate of 7.50 per cent per annum. Bandhan Bank follows with 7.45 per cent. For specific tenures, SBM Bank offers 7.10 per cent for 1-year deposits, City Union Bank offers 7.30 per cent for 3-year deposits, and DCB Bank offers 7.50 per cent for 5-year deposits.
Among public sector banks, Bank of India and Punjab & Sind Bank provide the highest rate of 6.85 per cent per annum. For 1-year tenures, Bank of India and Indian Overseas Bank offer 6.50 per cent. Bank of India also leads the 3-year category at 6.70 per cent, while Bank of Baroda offers 6.30 per cent for 5-year deposits.
While rate changes can influence lending and deposit costs, FD revisions are not automatic and depend on individual bank decisions.