Bank Of Maharashtra FD Interest Rates 2026: Tenure And Returns
Bank of Maharahtra is a public sector bank established in 1935 and headquartered in Pune, Maharashtra. The bank is led by MD & CEO Nidhu Saxena and is known for its strong presence in western India, growing digital banking operations, and government-backed banking network.
Introduction
Everyone wants their money to grow , not just sit idle in a savings account. That is where a Fixed Deposit (FD) comes in. An FD lets you park your money safely for a fixed period and earn guaranteed returns without any market risk, making it a stress-free way to build wealth1.
It’s simple, reliable, and perfect for people who want steady growth and peace of mind. At present, the Bank of Maharashtra (BoM) offers high FD interest rates making it a smart choice for anyone looking to grow their money securely.
Also Read: TD Interest Rates 2026
Bank of Maharashtra FD Interest Rates Overview
Bank of Maharashtra (BoM) is one of India’s oldest public sector banks, established in 1935. It combines the trust of a government-owned institution with a strong nationwide branch network, making it a popular choice for safe savings and investment options like Fixed Deposits (FDs).
Here are the current Bank of Maharashtra FD interest rates-
| Tenure | Normal Citizen FD Rate | Senior Citizen FD Rate |
| 7 days – 1 month 2 days | 2.60% | 2.60% |
| 1 month 3 days – 1 month 17 days | 2.75% | 2.75% |
| 1 month 18 days – 3 months 1 day | 3.75% | 3.75% |
| 3 months 2 days – 3 months 30 days | 4.00% | 4.50% |
| 4 months – 5 months 30 days | 4.75% | 5.25% |
| 6 months – 8 months 28 days | 5.00% | 5.50% |
| 8 months 29 days – 11 months 30 days | 5.25% | 5.75% |
| 1 year | 6.20% | 6.70% |
| 1 year 1 day – 1 year 1 month 6 days | 6.15% | 6.65% |
| 1 year 1 month 7 days | 6.50% | 7.00% |
| 1 year 1 month 8 days – 1 year 4 months 14 days | 6.15% | 6.65% |
| 1 year 4 months 15 days | 6.55% | 7.05% |
| 1 year 4 months 16 days – 2 years | 6.15% | 6.65% |
| 2 years 1 day – 2 years 11 months 30 days | 5.25% | 5.75% |
| 3 years – 4 years 10 months 12 days | 5.00% | 5.50% |
| 4 years 10 months 13 days | 6.05% | 6.55% |
| 4 years 10 months 14 days – 9 years 11 months 29 days | 5.00% | 5.50% |
How Bank Of Maharashtra FDs Compare With Other PSU Banks
When it comes to choosing a public sector bank (PSU bank) for your Fixed Deposit, interest rates can vary noticeably across lenders even though all offer the safety of government backing.
In recent data on PSU bank FD rates, some banks like Bank of Baroda (BoB), Central Bank of India, Union Bank of India, and Indian Bank have offered competitive rates on various tenures, especially for medium-term deposits up to 2 years. However, Bank of Maharashtra often stands out among PSU peers with relatively attractive rates .
| Name of Bank FD | FD Interest Rate p.a. (General Public) | FD Interest Rate p.a. (Senior Citizens) |
| Bank of Baroda | 3.50% - 6.00% | 4.00% - 6.50% |
| Bank of India | 3.00% - 6.70% | 3.50% - 7.20% |
| Bank of Maharashtra | 2.60% - 6.20% | 3.10%- 6.70% |
| Canara Bank | 3.00% - 6.15% | 3.00% - 6.65% |
| Central Bank of India | 3.50% - 6.50% | 4.00% - 7.00% |
| Indian Bank | 2.80% - 6.60% | 3.30% - 7.10% |
| Indian Overseas Bank | 3.50% - 6.60% | 4.00% - 7.10% |
| Punjab & Sind Bank | 2.85% - 6.70% | 2.85% - 7.20% |
| Punjab National Bank | 3.00% - 6.50% | 3.50% - 7.00% |
| State Bank of India | 3.05% - 6.40% | 3.55% - 7.05% |
| UCO Bank | 2.90% - 6.45% | 3.15% - 6.95% |
| Union Bank of India | 2.75% - 6.30% | 3.25% - 6.80% |
Source: Bank Of Maharashtra2
In simple terms:
- Bank of Maharashtra’s FD rates are competitive and often among the top PSU offerings, especially for short to mid-range durations.
- But other PSU banks sometimes offer slightly higher interest on particular tenures — so comparing specific terms before investing can help you maximize returns.
Overall, BOM is a strong choice within the PSU group, providing both safety and respectable interest, though depending on your target tenure, checking rates across other PSUs can help you find the best match.
Taxation On FD Interest
Interest earned on Fixed Deposits is taxable, and understanding how it is taxed helps you to plan your returns better.
- FD interest is fully taxable in India
- It is added under “Income from Other Sources”
- Tax is charged as per your income tax slab
- TDS is deducted if annual interest exceeds:
- INR 40,000 for regular investors
- INR 50,000 for senior citizens
- Form 15G / 15H can be submitted to avoid TDS if eligible3
- FD interest must be declared in ITR, even if no TDS is deducted
Exploring Fixed Income Beyond FDs
While Fixed Deposits remain a trusted option, investors aiming for slightly higher returns can also look beyond FDs to other fixed-income opportunities like corporate bonds. These bonds are issued by companies to raise capital and typically offer better interest rates than traditional bank deposits, especially when you invest in well-rated, high-quality issuances.
Corporate bonds can help diversify a portfolio while still providing predictable income, making them suitable for investors who want to balance safety with improved returns.
Conclusion
Bank of Maharashtra FD interest rates in 2026 offer a dependable option for investors seeking safety, predictable returns, and government-backed assurance. With competitive rates across short-, medium-, and long-term tenures and an additional interest benefit for senior citizens, BoM FDs remain well-suited for conservative savers, retirees, and those planning near-term financial goals. However, since FD interest is fully taxable, actual post-tax returns depend significantly on your income slab and tax planning.
For investors looking to improve returns without taking equity-level risk, diversifying beyond bank fixed deposits can make sense. Combining traditional PSU bank FDs with other fixed-income instruments such as high-quality corporate bonds can help balance stability, income, and yield potential more effectively.
Explore Grip Invest to discover curated fixed-income investment options that can complement bank FDs and help you build a more balanced, income-focused portfolio.
FAQs On BOM FD Interest Rates 2026
1. What are the latest Bank of Maharashtra FD interest rates for 2026?
Bank of Maharashtra offers competitive FD rates starting at 2.60% p.a. for short tenures (7 days–1 month 2 days) up to 6.20% p.a. for 1-year deposits for general citizens. Senior citizens get higher rates, like 6.70% p.a. for 1 year. Rates vary by exact tenure—check the official BoM site or table in this article for details, as they can change.
2. Who gets higher FD rates at Bank of Maharashtra—senior citizens?
Yes, seniors (aged 60+) enjoy an extra 0.50% p.a. on most tenures. For example, 6 months–8 months 28 days yields 5.00% for general public but 5.50% for seniors. This makes BoM FDs attractive for retirees seeking safe, boosted returns.
3. How do Bank of Maharashtra FD rates compare to other PSU banks?
BoM rates (2.60%–6.20% general, up to 6.70% seniors) are solid among PSU peers. They match or beat banks like SBI (3.05%–6.40%) and Canara Bank (3.00%–6.15%), especially for 1-year terms, but check specifics—e.g., Indian Bank offers up to 6.60%. All provide government-backed safety.
4. Is FD interest from Bank of Maharashtra taxable?
Yes, FD interest is fully taxable as "Income from Other Sources" per your slab rate. TDS applies if annual interest exceeds ?40,000 (?50,000 for seniors). Submit Form 15G/15H to skip TDS if eligible, but declare it in your ITR anyway.
5. What are good alternatives to Bank of Maharashtra FDs?
For higher yields with low risk, consider corporate bonds via platforms like Grip—they often beat FD rates (e.g., 8–9% on AAA bonds) while offering predictable income. Other options include PSU bank FDs or debt mutual funds, but bonds diversify beyond banks.
References:
1. Bank Of Maharashtra, accessed from: https://bankofmaharashtra.bank.in/fixed-deposit
2. Bank Of Maharashtra, accessed from: https://bankofmaharashtra.bank.in/domestic-term-deposits
3. Clear Tax, accessed from: https://cleartax.in/s/tds-on-fd-interest
Want to stay at the top of your finances?
Join the community of 4 lakh+ investors and learn more about Grip Invest, the latest financial knick-knacks, and shenanigans in the world of investing.
Happy Investing!
Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in
Registered Address - 106, II F, New Asiatic Building, H Block, Connaught Place, New Delhi 110001
