New Delhi: Investors can earn substantial returns through hassle-free investment options. Government-backed schemes are very popular, but Fixed Deposits (FDs) offered by banks are also highly favoured by the public. Bank FDs are an excellent choice, though interest rates vary across different banks.
Some Small Finance Banks (SFBs) are offering higher interest rates compared to major private and public sector banks. As of August 2026, certain banks are offering annual interest rates of up to 8.10% on FDs. Investing a sum like ₹10 lakh can yield significant interest income, ensuring a smooth and profitable investment experience.
Interest earned on an investment of ₹10 lakh
You can earn substantial returns by investing ₹10 lakh in Indian banks. Suryoday SF Bank offers a return of ₹81,000 in a year on a ₹10 lakh FD. Similarly, Utkarsh SF Bank provides a return of ₹81,000 (at an 8.10% rate) on a ₹10 lakh investment.
At Shivalik SF Bank, an investment of ₹10 lakh at an 8.00% rate yields a return of ₹80,000. Jana SF Bank also offers an annual return of ₹80,000 at an 8.00% rate, as does Equitas SF Bank.
Ujjivan SF Bank offers a return of ₹78,000 based on an annual interest rate of 7.8%. Slicing SF Bank provides ₹77,500 annually at a 7.75% interest rate, while DCB Bank offers an annual return of ₹75,000 at a 7.50% rate. At Bandhan Small Finance Bank, you can earn a return of up to ₹74,500 based on an interest rate of 7.45%. At IDFC Small Finance Bank, the return can go up to ₹72,500 based on a rate of 7.25%.
FD rates are subject to change.
It is worth noting that interest rates on fixed deposits are not fixed; banks offer different rates for different tenures. For instance, Suryoday Small Finance Bank offers a maximum rate of 8.10% for a 30-month tenure, while the rate for a one-year tenure is 7.25%. Therefore, before opening an FD, do not simply look at the headline rate; instead, check the specific interest rate the bank offers for the duration you intend to deposit your money.
People are earning handsome returns from FDs
It is heartening to note that people earn excellent returns by investing in Fixed Deposits (FDs), a completely hassle-free process. Moreover, various Government of India schemes offer impressive interest rates. Investing in bank FDs not only ensures the safety of funds but also yields substantial profits for the future.
