Best FD Interest Rates for 1 Year

One of the most favoured investment options across the country is depositing money in fixed deposits. This financial instrument helps secure an avenue of saving your surplus funds and generate guaranteed returns. Banks and financial institutions give you the flexibility to invest money in FD for whatever period you want, starting from 7 days to 10 years.

In this article, we will look into 1 year FD interest rates provided by different large and small banks in India, along with understanding the concept of fixed deposits clearly.

About FD

When you apply for a fixed deposit, you have to invest a specific amount for a fixed period of time and as per the interest rate applicable on that day. FDs assure you with guaranteed returns after the maturity period, making it one of the most popular choices among conservative investors.

Here are some features of FDs you must know before applying for one.

  • Banks offer flexible tenure on FDs that ranges from 7 days to 10 years.
  • Senior citizens get additional benefits on interest rates.
  • Financial institutions offer you the choice to select your interest payout tenure.
  • Premature withdrawal is allowed by banks to customers against a certain penalty.
  • You can reinvest your matured FD amount after your tenure is over.

Best FD Interest Rates for 1 Year Tenure – 2023

When you think about investing money in FDs for a short tenure, the most popular choice is a tenure of 1 year. However, the FD interest rate for 1 year is highly competitive and attractive among different types of banks and financial institutions.

In this section, we will look into FD rates for 1 year offered by large and small banks.

1. Bank FD Interest Rates for 1 Year

Here is a list of banks offering the best FD rates for 1 year.

BankGeneral CitizenSenior Citizen
State Bank of India6.80% p.a.7.30% p.a.
HDFC Bank6.60% p.a.7.10% p.a.
Axis Bank6.70% p.a.7.20% p.a.
ICICI Bank6.70% p.a.7.20% p.a.
Punjab National Bank6.75% p.a.7.25% p.a.
IDFC First Bank6.50% p.a.7.00% p.a.
Union Bank of India6.30% p.a.6.80% p.a.
Bank of Baroda6.75% p.a.7.25% p.a.
Canara Bank6.90% p.a.7.40% p.a.
Central Bank of India6.75% p.a.7.25% p.a.
DCB Bank7.15% p.a.7.65% p.a.
Bank of India6.00% p.a.6.50% p.a.
IDBI Bank6.80% p.a.7.30% p.a.
Bandhan Bank7.25% p.a.7.75% p.a.
Note: The interest rate given for each bank is for fixed deposits less than ₹2 crores.

2. Small Finance Bank FD Interest Rate for 1 Year

Here is a list of small finance banks offering the best FD rates for 1 year.

BankGeneral CitizenSenior Citizen
Ujjivan Small Finance Bank 8.25% p.a.8.75% p.a.
AU Small Finance Bank6.75% p.a.7.25% p.a.
Utkarsh Small Finance Bank8.00% p.a.8.60% p.a.
Jana Small Finance Bank8.00% p.a.8.50% p.a.
Shriram Finance Transport Bank7.60% p.a.8.10% p.a.
Suryoday Small Finance Bank 6.85% p.a.7.35% p.a.
Equitas Small Finance Bank8.20% p.a.8.70% p.a.
Capital Small Finance Bank Limited7.50% p.a.8.00% p.a.
Unity Small Finance Bank7.35% p.a.7.85% p.a.
Note: The interest rate given for each bank is for fixed deposits less than ₹2 crores.

Conclusion

In this volatile financial scenario, investing in FDs gives you stability, as well as peace of mind in terms of assured returns. Different large sector banks and small finance banks offer the best 1 year FD interest rates, raising enthusiasm among investors to save money using this instrument.

Nonetheless, make sure you compare the interest rates of different banks, along with their terms and conditions, to grow your money seamlessly for a year.

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