One of the best ways for the middle class to save money is through fixed deposits (FDs). These FDs come with different tenures, such as 1, 2, 3, and 5 years. Various banks offer attractive interest rates on them. In this article, we will share details about seven banks offering high interest rates on 1-year FDs. Check the rates here.
What is an FD?
The full form of FD is Fixed Deposit. It is a type of investment where an individual deposits a lump sum amount with a bank for a specific period. The deposited amount earns interest at a fixed rate, which is decided at the time of opening the FD. FD holders can choose to receive the interest either monthly, quarterly, half-yearly, or annually, based on their preference.
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Fixed Deposits are popular because they are one of the safest investment options available. The returns are guaranteed, and there is no risk of capital loss. Moreover, they offer a higher interest rate compared to savings accounts, making them a stable and attractive investment choice. Some tax-saving FDs also provide benefits by helping individuals save on taxes.
Top 7 Banks in India Offering Massive Interest on 1-Year FDs
1. HDFC Bank
HDFC Bank, the largest private bank in the country, offers an interest rate of 6.6% for general customers and 7.1% for senior citizens.
2. ICICI Bank
ICICI Bank offers an interest rate of 6.7% for general customers and 7.2% for senior citizens.
3. Kotak Mahindra Bank
Kotak Mahindra Bank offers an interest rate of 7.1% for general customers and 7.6% for senior citizens.
4. Federal Bank
Federal Bank provides an interest rate of 7% for general customers and 7.5% for senior citizens.
5. Bank of Baroda
Bank of Baroda offers an interest rate of 6.85% for general customers and 7.35% for senior citizens.
6. Union Bank of India
Union Bank of India offers an interest rate of 6.8% for general customers and 7.3% for senior citizens.
7. State Bank of India
The State Bank of India, the country’s largest government bank, provides an interest rate of 6.8% for general customers and 7.3% for senior citizens.
Choose the Right Bank for Your FD
Instead of making an FD at the bank where you already have an account, compare interest rates across different banks. Some banks may offer slightly higher rates, especially if you invest a large amount. Always choose the bank that provides the best returns on your investment.
Disclaimer: The interest rates mentioned above are subject to change as per the bank’s policies. It is advisable to check with the respective bank for the latest rates before investing. FD returns may vary based on tenure, deposit amount, and applicable taxes. This article is for informational purposes only and does not constitute financial advice.