Banks Offering the Best Interest Rates for 1-Year FD

Banks Offering the Best Interest Rates for 1-Year FD

Updated: 3 months, 7 days, 20 hours, 38 minutes, 4 seconds ago

Soon after the recent repo rate hike by the Reserve Bank of India (RBI), many banks have also increased their current FD interest rates. Both public and private banking institutions are now offering highly attractive fixed deposit schemes with competitive rates of interest.

However, as a prospective investor, it is natural for you to want to invest in a bank that offers a high FD interest rate. But seeing as there are many banking institutions in India, how do you determine the one that offers the highest 1-year FD interest rate?

Take a look at the different interest rates offered by some of the banks in India before moving onto the key highlights of their fixed deposit schemes.

Current FD Interest Rates of Top Banks

The table below shows you the 1-year FD interest rates across different banks for non-senior citizens as well as for senior citizens. These are among the highest FD rates for such short-term deposits in the market right now. The rates shown below are for fixed deposits up to ₹2 crores. Keep in mind that these rates will be subject to revision at the discretion of the bank. So, if you want to open a fixed deposit, make sure you check the current FD interest rates to get a better idea of the returns you will earn at that point.

Bank Name 1-year FD interest rates for non-senior citizens 1-year FD interest rates for senior citizens Unity Small Finance Bank 7.35% 7.85% Utkarsh Small Finance Bank 7.15% 7.90% Bandhan Bank 7.00% 7.50% Suryoday Small Finance Bank 7.00% 7.50% RBL Bank 6.50% 7.00%

Unity Small Finance Bank FD

Unity Small Finance Bank offers some of the best 1-year FD interest rates today. Check out the key features of the fixed deposit scheme from this bank below.

♦ No cap on the maximum amount you can invest in the fixed deposit

♦ Loan or overdraft facility available up to 85% of the deposit amount

♦ Nomination facility for easy transfer of funds to the nominee in case of the demise of the FD holder

♦ Quick and easy liquidation options in case you need funds for an emergency

♦ Higher rates of interest for senior citizens

Utkarsh Small Finance Bank FD

The current FD interest rates offered by Utkarsh Small Finance Bank are highly competitive for both non-senior as well as senior citizens. Here are the key features of this FD scheme.

♦ Flexible interest payment options such as monthly payouts, quarterly payouts or payouts at maturity

♦ Easy account opening process

♦ Minimum investment amount of ₹1,000

♦ No limit on the maximum investment allowed

♦ Higher interest rates for senior citizen FD holders

Bandhan Bank FD

Bandhan Bank also offers a fixed deposit scheme with very attractive 1-year FD interest rates. If you are planning to open a fixed deposit account with this bank, check out the main features of the scheme below.

♦ Attractive rates of returns on high-value deposits

♦ Flexible investment tenure ranging from 7 days to 10 years

♦ Option to choose from monthly or quarterly interest payouts for standard fixed deposits

♦ Automatic renewals to continue your investments

♦ Option to avail a loan or overdraft facility against your fixed deposit

♦ Nomination facility available

Suryoday Small Finance Bank FD

Suryoday Small Finance Bank is another financial entity that gives you attractive current FD interest rates. Here are the main features of this small finance bank's FD scheme.

♦ The minimum amount of investment needed is ₹1,000, and thereafter, the amounts can increase in multiples of ₹1

♦ Option to choose from traditional payout FDs or reinvestment schemes

♦ Option to auto-renew your FD at the end of the investment tenure

♦ Flexible fixed deposit tenures ranging from 7 days to 10 years

♦ Nominal penalty of 1% of the deposit amount on premature withdrawal


Another leading bank in India, RBL Bank has attractive 1-year FD interest rates in case you are planning to open a short-term deposit. Here are the key characteristics of the scheme that you should know about.

♦ Easy booking of fixed deposits via internet banking

♦ Flexible fixed deposit tenures ranging from 7 days to 20 years

♦ Permission to withdraw the amount deposited partly and/or prematurely

♦ Higher interest rate for senior citizens

♦ Nomination facility for all fixed deposit account holders

Now that you know which banks have the best current FD interest rates for short term deposits of 1 year, you can make your choice and open an FD account accordingly. Remember to choose the frequency of interest payouts as per your financial needs. If you do not require any additional regular income, it is best to reinvest the interest. Also, keep the withdrawal penalty in mind, and try not to prematurely withdraw your investments. This way, you can optimise the returns from your deposit.