As fixed deposit (FD) has become one of the most adaptable ways of investing, you should have a few of the basic information to make wise decisions. It is common and also advisable for investors to go through the top banks. These banks and financial institutions are considered the best to get the highest interest rates on the deposits.
Even though fixed deposits are the most common investment option, it is advisable for investors to search for banks that are willing to offer the highest interest rates on their deposited money. Despite the fact that such banks ask for long-term deposits, one can still opt for short-term deposits to get early financial goals.
Top 6 banks offer the best rate of interest on 1 year fixed deposit
Bank Name | 1-Year FD Interest Rate (General) | 1-Year FD Interest Rate (Senior Citizens) | Key Benefits |
State Bank of India (SBI) | 5.75% – 6.25% | 6.25% – 6.75% | Trusted bank, preferential senior citizen rates, wide network |
HDFC Bank | 6.10% – 6.40% | 6.60% – 6.90% | Competitive rates, online FD renewals, loan against FD |
ICICI Bank | 6.25% – 6.60% | 6.75% – 7.10% | Flexible FD options, robust online banking services |
Kotak Mahindra Bank | 6.50% | 7.00% | High interest rates, customizable schemes |
Yes Bank | 6.75% – 7.00% | 7.25% – 7.50% | Attractive rates, easy application process |
IDFC First Bank | 6.75% – 7.00% | 7.25% – 7.50% | High returns, convenient banking services |
In-Depth Review of Top Banks
- State Bank of India (SBI): Being one of the trusted and biggest banks in India, SBI offers the best FD rates. Senior citizens benefit from an additional 0.50% on their deposits. SBI is also known for its vast branch network that makes it accessible for people across the country to Apply for an instant personal loan and other banking facilities.
- HDFC Bank: The world-renowned HDFC Bank is popularly known for its unquestionable customer service and competitive FD rates. For a one-year FD, general investors can earn between 6.10% and 6.40%. Similarly, senior citizens can enjoy higher rates, up to 6.90%. HDFC Bank also offers the best instant personal loan with minimal documentation.
- ICICI Bank: ICICI is another leading private sector bank who offers attractive interest rates and flexible FD options. The bank provides robust online banking services, such as instant personal loans, etc., allowing you to manage your FD. With a rate ranging between 6.25% and 6.60% for a one-year FD, it’s the best choice.
- Kotak Mahindra Bank: This bank is known for its high interest rates, as it offers up to 6.50% for a 1-year FD. The bank also allows customers to customize their fixed deposit schemes, which are suitable for their needs, making it a convenient option for those looking for flexible investment solutions.
- Yes Bank: Yes Bank has earned the name in the industry due to its higher interest rates and flexible terms of applying for an instant personal loan. For general investors, it offers between 6.75% and 7.00% and up to 7.50% for senior citizens. The consumer gets an easy application process, which is convenient for first-time investors to open an FD.
- IDFC First Bank: IDFC First Bank is also on this list of top banks that offer the highest interest rates on their 1-year fixed deposits. With rates going as high as 7.00% for general customers and 7.50% for senior citizens, this bank is known for offering one of the best interest rates in the market.
Note: The rates discussed in this entire blog are subject to change. It would be a wise decision to confirm with the respective banks to make an informed decision.
Final Thoughts
It would be a smart financial move to invest in a 1-year fixed deposit, as it will turn out to be stable returns without even being tied up with the long-term obligation of a multi-year deposit. Generally, FDs are not there to offer the same high returns as riskier investment options. But it provides you with peace of mind as your money is in safe hands and earning a good interest.
