Fixed Deposits (FD) have long held a sense of security amongst the general citizens of India as it is a safe bet. With an FD account, one gains access to much more flexibility of tenure and give a wide range of investment options. In terms of a timeframe, customers of banks can invest for their short-term, mid-term or even long-term financial purposes. Even with all this room to invest and the fixed returns that this type of savings generate, it is still dependent on the FD rates that the banks charge. Most banks charge under two separate umbrellas. The first category is for the general citizens and the second is for senior citizens who get a higher rate of interest on their returns. Thanks to the flexibility of FD, the tenure can range anywhere from a week to a decade.
In recent times FD rates have been plummeting in the wake of the pandemic and the blows that the financial systems have suffered. Despite this, there are still some banks in India that offer customers good investment rates on their FD. Here are the top 5 banks that offer the best 1-Year Fixed Deposit Rates.
Top 5: Best 1-Year Fixed Deposit Rates Offered by Banks
1) State Bank of India: Being one of the country’s leading commercial banks, the State Bank of India is giving its customers a 1-year period interest rate of 5 per cent for their FDs if they fall under the general citizen category. Senior citizens will receive an FD interest rate of 5.50 per cent on their FD returns. This change of FD rates came into effect as of January 08, 2021.
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2) HDFC Bank: This bank put its new FD rates into motion from May 21 of this year. HDFC offers general citizens an interest rate of 4.90 per cent on their 1-year Fixed Deposits. Senior citizens can avail themselves an interest rate of 5.40 per cent for the same investment period on their returns.
3) ICICI Bank: For customers of the ICICI Bank, an interest rate of 4.90 per cent is available for the 1-year term of investment option for their FDs. Along the same lines, senior citizens get an interest rate of 5.40 per cent on their returns from this bank. This FD rate came into function on October 21, 2020.
4) Axis Bank: This private bank gives general citizens a 5.1 per cent interest rate on their FD savings that are invested for a 1-year period. It also offers a 5.75 per cent FD interest rate to senior citizens. These changes came into effect as of June 22, 2021.
5) Yes Bank: Yes Bank offers its customers an interest rate of 5.25 per cent for the general citizens and 5.75 per cent for its senior citizens. Both of these interest rates apply to the FD timeframe of 9 months to a year. The new interest rates were effective from June 3, 2021.
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Source: News18