Federal vs Union FD Rates October 2026

Federal offers up to 6.70% p.a. · Union up to 6.80% p.a. · Side-by-side across all tenures, general & senior citizen rates.

FD Rate Comparison — All Tenures

Highlighted cells show the higher rate for each tenure. Dataset refreshed 1 Oct 2026.

1-year FD winner Federal 6.40% vs 6.20%
Savings account Union
Tenure Federal Union
GeneralSenior GeneralSenior
6 months 5.50% 6.00% 5.40% 5.90%
1 year 6.40% 6.90% 6.20% 6.70%
2 years 6.50% 7.00% 6.15% 6.65%
3 years 6.50% 7.00% 6.10% 6.60%
5 years 6.40% 6.90% 6.00% 6.50%

Rates for retail deposits below ₹3 crore. Senior citizen rate typically +0.25–0.50% p.a. Green cells show the higher general rate for each tenure. Calculate your maturity amount →

Savings Account Rates

Federal
—
vs
Union
2.50% p.a.

Which bank should you choose?

Federal is a private sector bank; Union is a public sector bank. Both are RBI-regulated with DICGC deposit insurance up to ₹5 lakh. Union holds a slim rate advantage right now. For most depositors the difference is modest; branch proximity and existing banking relationships are equally worth weighing.

This is informational only — always verify the current rate on the bank's official website and consult a financial adviser for personalised guidance.

About These Banks

Federal Bank

Type
Private Sector Bank
HQ
Aluva, Kochi
Est.
1931
Best FD rate
6.70% p.a.
DICGC insured
Yes (up to ₹5 lakh)
Full profile
Federal deposit rates →

Union Bank of India

Type
Public Sector Bank
HQ
Mumbai
Est.
1919
Best FD rate
6.80% p.a.
DICGC insured
Yes (up to ₹5 lakh)
Full profile
Union deposit rates →

Frequently Asked Questions

Which bank gives a higher FD interest rate — Federal Bank or Union Bank of India?

Union Bank of India currently offers a higher maximum FD rate of 6.80% p.a., compared to 6.70% p.a. from Federal Bank (as of 1 Oct 2026).

What is Federal Bank's current 1-year FD interest rate?

Federal Bank offers 6.40% p.a. for general depositors on 1-year FDs, and 6.90% p.a. for senior citizens (as of 1 Oct 2026). Confirm the current rate on Federal Bank's official website before investing.

What is Union Bank of India's current 1-year FD interest rate?

Union Bank of India offers 6.20% p.a. for general depositors on 1-year FDs, and 6.70% p.a. for senior citizens (as of 1 Oct 2026). Confirm the current rate on Union Bank of India's official website before investing.

Are fixed deposits with Federal Bank and Union Bank of India safe?

Yes. Both Federal Bank and Union Bank of India are regulated by the Reserve Bank of India (RBI). Deposits at both banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5,00,000 per depositor per bank, covering principal and interest combined. Amounts above ₹5 lakh are not covered by deposit insurance.

Do Federal Bank and Union Bank of India offer higher FD rates for senior citizens?

Yes, both banks offer additional interest for senior citizens (aged 60 and above), typically 0.25%–0.50% p.a. above the general rate. Federal Bank's 1-year senior rate: 6.90% p.a. Union Bank of India's 1-year senior rate: 6.70% p.a.

What is the highest FD rate available between Federal Bank and Union Bank of India?

The highest rate between the two is 6.80% p.a. from Union Bank of India for the 444 days tenure (general public, retail deposits below ₹3 crore, as of 1 Oct 2026).