New Delhi, May 15 -- In an environment of persistent inflation and evolving interest rates, investors are increasingly looking for stable, predictable income options that protect capital while delivering regular returns. In 2026, small finance banks (SFBs) in India continue to offer some of the most competitive fixed deposit (FD) rates in the banking system, making them an attractive choice for conservative investors, retirees, and senior citizens.

Furthermore, a Rs.1 crore FD in these banks can generate an estimated monthly income of Rs.60,000 to Rs.69,000, depending on the bank, tenure, and applicable interest rate.

Let us look at the interest rates offered by prominent SFBs for both general and senior citizens and see how they can go...