Interest rates on FDs: Top banks offering highest returns on one-year fixed deposits
Top banks offer a wide range of interest rates on one-year FDs, with the highest from IndusInd Bank at 7%, Axis Bank at 6.60%, followed by varying rates for investors.
Fixed deposits, particularly one-year FDs, are a favoured investment option for individuals prioritising guaranteed returns, as they provide a balance between returns and liquidity for short-term financial goals.
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Banks offer diverse interest rates for fixed deposits, making it crucial to select the right one to maximize earnings. Here are leading private and PSU banks that offer the highest interest rates on FDs. The best rates offered by these banks on one-year FDs (up to Rs 1 crore) for resident, retail, and non-senior citizens have been taken into account. Let’s examine how an investment of Rs 1 lakh grows over this period. BankBazaar has compiled the data, as of August 8.
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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.
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Axis Bank, HDFC Bank, and Kotak Mahindra 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 offers an interest rate of 6.40 percent on one-year FD. A deposit of Rs 1 lakh here will grow to Rs 1.06 lakh on the maturity date.
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Bank of Baroda, Punjab National Bank, and Union Bank of India 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.
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Canara Bank offers an interest rate of 6.50 percent on one-year FD. A deposit of Rs 1 lakh here will grow to Rs 1.06 lakh on maturity.
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State Bank of India (SBI) offers an interest rate of 6.45 percent on FDs with a tenor of one year. In one year, a Rs 1 lakh FD would grow to Rs 1,06,450.
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.
