Interest rates on FDs: Top banks offering highest one-year fixed deposit rates

One-year fixed deposits (FDs) are a popular investment choice for those seeking assured returns and liquidity, making them ideal for short-term financial objectives.

Here is a list of leading private and PSU banks offering the highest interest rates on FDs. The list takes into account the best rates offered by these banks on one-year FDs (up to Rs 1 crore) for resident, retail, and non-senior citizens. Let’s examine how an investment of Rs 1 lakh grows over this period. BankBazaar compiled the data as of September 22.

IndusInd Bank stands out among private banks, offering a 6.99 percent interest rate on one-year fixed deposits, which would grow a Rs 1 lakh investment to Rs 1,06,900 at the time of maturity.

HDFC Bank, Axis Bank and Kotak Mahindra Bank offer a 6.6 percent rate on one-year fixed deposits, growing a Rs 1 lakh investment to Rs 1,06,600.

ICICI Bank offers an interest rate of 6.40 percent on one-year FD. A deposit of Rs 1 lakh with the private lender will grow to Rs 1,06,400 on the maturity date.

Punjab National Bank and Bank of Baroda offer 6.6 percent rate on one-year fixed deposits, with a Rs 1 lakh investment maturing to Rs 1,06,600, the highest among public sector banks.

Union Bank of India and Canara Bank offer a 6.5 percent interest rate on one-year fixed deposits, with a Rs 1 lakh investment maturing to Rs 1,06,500.

State Bank of India offers an interest rate of 6.45 percent on FDs with a tenure of one year. In one year, a Rs 1 lakh FD would grow to Rs 1,06,450.