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 – 2024
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
Here is a list of banks offering the best FD rates for 1 year.
| Bank | General Citizen | Senior Citizen |
|---|---|---|
| State Bank of India | 6.80% p.a. | 7.30% p.a. |
| HDFC Bank | 6.60% p.a. | 7.10% p.a. |
| Axis Bank | 6.70% p.a. | 7.20% p.a. |
| ICICI Bank | 6.70% p.a. | 7.20% p.a. |
| Punjab National Bank | 6.75% p.a. | 7.25% p.a. |
| IDFC First Bank | 6.50% p.a. | 7.00% p.a. |
| Union Bank of India | 6.30% p.a. | 6.80% p.a. |
| Bank of Baroda | 6.75% p.a. | 7.25% p.a. |
| Canara Bank | 6.90% p.a. | 7.40% p.a. |
| Central Bank of India | 6.75% p.a. | 7.25% p.a. |
| DCB Bank | 7.15% p.a. | 7.65% p.a. |
| Bank of India | 6.00% p.a. | 6.50% p.a. |
| IDBI Bank | 6.80% p.a. | 7.30% p.a. |
| Bandhan Bank | 7.25% p.a. | 7.75% p.a. |
2. Small Finance Bank FD Interest Rate
Here is a list of small finance banks offering the best FD rates for 1 year.
| Bank | General Citizen | Senior Citizen |
|---|---|---|
| Ujjivan Small Finance Bank | 8.25% p.a. | 8.75% p.a. |
| AU Small Finance Bank | 6.75% p.a. | 7.25% p.a. |
| Utkarsh Small Finance Bank | 8.00% p.a. | 8.60% p.a. |
| Jana Small Finance Bank | 8.00% p.a. | 8.50% p.a. |
| Shriram Finance Transport Bank | 7.60% p.a. | 8.10% p.a. |
| Suryoday Small Finance Bank | 6.85% p.a. | 7.35% p.a. |
| Equitas Small Finance Bank | 8.20% p.a. | 8.70% p.a. |
| Capital Small Finance Bank Limited | 7.50% p.a. | 8.00% p.a. |
| Unity Small Finance Bank | 7.35% p.a. | 7.85% p.a. |
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.
FAQs
You can use the two formulas given below to manually calculate FD returns.
Simple Interest (SI) = (P * R * T) / 100
Here,
SI = Simple Interest, P = Principal investment amount, R = Interest rate applicable on the date of deposit, and T = Tenure of the deposit
Or,
Compound interest method –
A = P (1+r/n) ^ (n * t)
Here,
A = Maturity amount, P = Principal investment amount, n = Number of compounding in a year, r = Rate of interest, and t = Tenure of deposit
Nonetheless, to avoid complicated calculators, you can use online FD calculators to get easy and instant results.
Yes. Banks allow you to invest money in FDs for less than 1 year. Minimum tenure starts for 7 days for majority banks.
Ujjivan Small Finance Bank is offering the highest 1 year FD interest rate. General citizens get 8.25%, and senior citizens get 8.75% per annum
State Bank of India offers 6.80% and 7.30% interest rates to general and senior citizens to deposit ₹50,000 in fixed deposit for 1 year.
HDFC Bank offers 6.60% and 7.10% interest rates to general and senior citizens to deposit ₹10,000 in FD for 1 year
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Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
