Highest 1-year FD rate: Maturity on Rs 1L deposit

Fixed deposits (FDs) are considered as stable and comparatively safer investment options for risk-averse investors. FDs provide returns at a fixed rate that is locked in at the time of investing and doesn’t change throughout the tenure. At a time when the stock market is not delivering good returns, many investors may want to invest in FDs.

One can invest in an FD for a duration of 7 days to 10 years depending on their choice and the tenure offered by a bank. Here, we take you through the highest 1-year FD interest rates from public and private sector banks and small finance banks (SFBs). Also find out the approximate maturity amount you can get on a Rs 1 lakh investment in these FDs.

One-year FD

A one-year FD means that you are not locking in your money for a long period. You can withdraw the amount at maturity and can use it for your financial goal. A one-year FD gives you the flexibility of a short-term tenure, the safety of stable returns and the relief of steering clear of market volatility.

Highest 1-year FD interest rates: Small Finance Banks

Among small finance banks, Suryoday Small Finance Bank and Ujjivan Small Finance Bank offer an interest rate of 7.25% each on their respective 1-year FDs. A deposit of Rs 1 lakh would grow to approximately Rs 1,07,450 at maturity. Equitas Small Finance Bank offers a 7.1% rate where the maturity amount on a Rs 1 lakh investment will be Rs 1,07,291 Jana Small Finance Bank offers a 7% rate, with Rs 1,07,186 payable at maturity on a Rs 1 lakh deposit.

Highest 1-year FD interest rates: Private sector banks

SBM Bank India offers a 7.1% interest rate on a 1-year FD, where a Rs 1 lakh deposit grows to approximately Rs 1,07,291 at maturity. Bandhan Bank offers a 7% rate, with a maturity amount of Rs 1,07,186. DCB Bank and RBL Bank offer a 6.9% each, with Rs 1,07,080 payable at maturity on a Rs 1 lakh deposit. HDFC Bank, Axis Bank and ICICI Bank offer a 6.25% apiece, offering a maturity amount of Rs 1,06,398.

Highest 1-year FD interest rates: Public sector banks

Bank of India and Indian Overseas Bank offer an interest rate of 6.5% each on a 1-year FD, where a Rs 1 lakh deposit grows to approximately Rs 1,06,660 at maturity. Bank of Baroda, Canara Bank, Punjab National Bank and State Bank of India offer a 6.25% each on a 1-year FD, with Rs 1,06,398.02 payable at maturity on a Rs 1 lakh deposit.

FD interest rate data source: Paisabazaar

These figures should not be treated as confirmed bank-specific maturity amounts. The final maturity amount may vary from our figures. So, it is advisable to contact a particular bank to know the exact maturity amount on a Rs 1 lakh investment.