Best rates on Fixed Deposits: These are the top private and PSU lenders offering the most-attractive rates on FDs

One-year fixed deposits are a popular investment choice for those seeking guaranteed returns, offering a balance between returns and liquidity for short-term financial objectives.

To maximize your fixed deposit earnings, it's essential to choose the right bank, as interest rates vary significantly. Here's a breakdown of top private and public sector banks offering high interest rates on FDs for one-year deposits up to Rs 1 crore, catering to resident, retail, and non-senior citizens. Let’s examine how an investment of Rs 1 lakh grows over this period. BankBazaar has compiled the data, as of September 5.

IndusInd Bank stands out among private banks, offering a 7 percent interest rate on one-year fixed deposits, which would grow a Rs 1 lakh investment to Rs 1.07 lakh in a year.

Kotak Mahindra Bank, Axis Bank and HDFC Bank offer a 6.60 percent interest rate on one-year fixed deposits, growing a Rs 1 lakh investment to Rs 1,06,600 at maturity.

ICICI Bank provides a 6.40 percent interest rate on one-year fixed deposits. With a Rs 1 lakh deposit, you'll earn interest and receive Rs 1,06,400 at maturity.

Bank of Baroda and Punjab National Bank offer a competitive 6.60 percent interest rate on one-year fixed deposits, with a Rs 1 lakh investment maturing to Rs 1,06,600, representing the best rate among public sector banks.

Canara Bank and Union Bank of India offer a competitive 6.50 percent interest rate on one-year fixed deposits, with a Rs 1 lakh investment maturing to Rs 1,06,500.

State Bank of India’s one-year fixed deposit offers a 6.45 percent interest rate, growing a Rs 1 lakh investment to Rs 1,06,450 upon maturity.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, guarantees the safety of fixed deposits of up to Rs 5 lakh.