Banks with the Highest Fixed Deposit Interest Rates in Kenya in 2026

For investors looking for a low-risk way to grow their savings, fixed deposit accounts remain one of the most attractive options offered by banks in Kenya. Unlike ordinary savings accounts, fixed deposits provide guaranteed returns over a predetermined period, allowing customers to lock in higher interest rates and earn predictable income.

Interest rates offered by banks vary depending on the amount invested, tenure selected, and prevailing market conditions. Some institutions also allow customers to borrow against their deposits, while others offer compounding options that can further increase returns.

What Is a Fixed Deposit Account?

A fixed deposit account is a savings product that allows customers to place a lump sum amount with a bank for a specific period, usually ranging from one month to several years, at a predetermined interest rate.

During the investment period, the funds remain locked in the account. While early withdrawals are generally allowed, they often attract penalties or result in reduced interest earnings.

Fixed deposits appeal to conservative investors because they offer certainty. The interest rate agreed upon at the beginning of the term remains unchanged throughout the investment period, shielding savers from market fluctuations.

The banks with the highest fixed deposit interest rates include:

1. Credit Bank PLC

Credit Bank currently offers some of the highest fixed deposit rates in Kenya, with annual returns ranging between 13.18% and 13.60%.

The bank links its fixed deposit pricing to yields on government Treasury bills. As Treasury bill rates rise, depositors may benefit from higher returns.

One of its notable features is the use of compound interest. Monthly earnings are added back to the principal amount, enabling customers to earn interest on accumulated interest over the investment period. The minimum investment tenure is one month.

For investors focused on maximizing long-term growth, the compounding feature can substantially increase the maturity value of the deposit.

2. ABC Bank

ABC Bank offers annual fixed deposit rates ranging from 12.32% to 12.89%, making it one of the more competitive options in the market.

Customers can select investment periods of one, three, six, nine, or twelve months, depending on their liquidity requirements. Interest rates may also be negotiated, particularly for larger deposits.

Another advantage is the ability to use the fixed deposit as collateral when applying for a loan. The bank does not charge account opening fees or management costs for the facility.

3. Sumac Microfinance Bank

Sumac Microfinance Bank offers fixed deposit returns of up to 12.00% per annum.

The institution caters to savers seeking stable returns and guarantees the agreed interest rate for the duration of the investment term, regardless of changes in market conditions.

An additional attraction is the absence of monthly ledger fees and maintenance charges. The institution has maintained the 12% rate over an extended period, making it attractive to customers seeking consistency in their investment income.

4. Family Bank

Family Bank offers fixed deposit rates of up to 11.96% annually. Customers can open an account with a minimum investment amount of KSh30,000, while deposit terms range from one month to twelve months.

The bank also allows customers to borrow up to 90% of the value of their fixed deposit if they require access to emergency funds. Since the deposit acts as security, borrowers may qualify for more favorable lending terms.

5. Kingdom Bank

Kingdom Bank provides annual fixed deposit returns ranging from 10.63% to 11.46%.

One of its key attractions is accessibility. Customers can open a fixed deposit account with as little as KSh5,000, making it suitable for first-time investors and individuals seeking to gradually build their savings.

The bank offers stable returns throughout the agreed investment period, helping depositors plan their finances with greater certainty.

6. Development Bank of Kenya

The Development Bank of Kenya offers annual fixed deposit rates ranging between 10.61% and 11.22%.

The institution primarily finances development and commercial projects and tends to attract customers making larger investments.

Fixed deposits at the bank are considered suitable for investors prioritizing capital preservation and predictable earnings. Returns are agreed upon at the beginning of the investment period, allowing depositors to estimate their maturity value in advance.

7. Equity Bank

Equity Bank offers fixed deposit returns of approximately 10.72% to 10.73% per annum.

As one of East Africa’s largest banking institutions, Equity bank provides customers with digital tools for monitoring their investments through its online and mobile banking platforms.

Customers can also access loans of up to 90% of their fixed deposit amount, enabling them to meet short-term liquidity needs without prematurely terminating their investment.

8. SBM Bank Kenya

SBM Bank Kenya offers fixed deposit rates ranging from 9.77% to 10.66% annually.

The bank gives investors flexibility in selecting how they receive their returns. One option allows customers to receive interest payments upfront, rather than waiting until the deposit reaches maturity.

This arrangement may appeal to investors seeking immediate cash flow while keeping their principal amount invested.

9. Bank of Baroda

Bank of Baroda offers fixed deposit rates of up to 10.66% per annum. The bank allows customers to renew their deposits automatically upon maturity, helping maintain uninterrupted investment growth.

It also provides an online fixed deposit calculator that enables prospective investors to estimate expected returns before committing their funds.