The effect of increasing tension in the Middle East, especially the conflict between Israel and Iran, is now visible on the economy of the entire world. This is having a direct impact on the prices of crude oil and other essential commodities, due to which the risk of inflation increasing. There is a similar concern in India that if inflation increases, the Reserve Bank of India i.e. RBI may have to change interest rates.

The Monetary Policy Committee meeting of RBI is going to be held on 8 April 2026. A decision regarding repo rate will be taken in this meeting. At present, experts believe that there is little possibility of immediate change in interest rates, but if inflation increases in the coming months, RBI may take strict action. This directly impacts the interest rates of FD and loan.

Where is FD interest up to 8% available?

At present, there is a lot of difference in the interest available on FD in different banks. The special thing is that small finance banks are giving the highest returns. Suryoday Small Finance Bank is offering interest up to 8.10%, which is considered quite attractive at present. Apart from this, Jana Small Finance Bank and ESAF Small Finance Bank are offering returns up to 8%. Shivalik Small Finance Bank and Slice Small Finance Bank are also offering interest ranging from 7.75% to 7.80%.

How much return is being received in government banks?

The interest rates in government banks are slightly lower, but they are considered more secure. Punjab and Sindh Bank is giving interest up to 6.75%. Bank of Maharashtra is giving returns of 6.65% and Bank of India is giving returns of around 6.60%. Apart from this, Canara Bank and Indian Bank are also offering interest in almost the same range.

What is the condition of private banks?

Good returns are being received on FD in private sector also. IDFC FIRST Bank is offering interest up to 7.4%. Bandhan Bank and RBL Bank are giving returns ranging between approximately 7.2% to 7.25%. Apart from this, SBM Bank India and Jammu and Kashmir Bank are also offering interest at the same level.

What is the right strategy for investors?

If you want higher returns then small finance banks can be a better option, but they also carry some risk. At the same time, if you want a safe investment then government bank FD is considered more reliable. Right now there is a good opportunity for FD investors. But the real direction will become clear after the decision of RBI on 8th April. If interest rates increase in future, the returns on FD may be even better.