Before investing in fixed deposits (FDs), it is common and even recommended for investors to look for the bank or financial institution that offers the highest interest rate on their deposit. Although it is common for banks to offer higher interest rates on long-term deposits, you can also choose short-term deposits to meet your early financial goals.
Here we list the top 7 banks offering the highest interest rates on 1-year fixed deposits (FDs). It is understandable that these interest rates are lower than the interest rates offered by banks for long-term deposits such as 3 or 5 years.
If we examine the deposits in the past year, we find that most banks offer interest rates in the range of 6.60-7.10 per cent for one-year deposits, with the highest being Kotak Mahindra Bank (7.1 per cent) . Meanwhile, senior citizens will be entitled to an additional 50 basis points, increasing the interest rate range between 7.1 and 7.60%.
General/Elderly
As per the table below, HDFC Bank offers 6.6 per cent FD for one year to savings depositors and 7.10 per cent per annum to senior citizens. These rates went into effect on July 24, 2024.
ICICI Bank offers 6.7 per cent on one-year deposits and 7.2 per cent for senior citizens.
Kotak Mahindra is offering 7.1% to depositors and 7.6% to senior citizens. These rates took effect from June 14, 2024. On the other hand, State Bank of India (SBI) offers 6.8 per cent to the general public and 7.3 per cent to senior citizens. These fees went into effect on June 15th.
Bank of Baroda is offering an interest rate of 6.85% to the general public and 7.35% to senior citizens, with effect from October 3, 2024. Punjab National Bank also revised its interest rates on October 1 earlier this month. And it currently provides 6.8% to the general public and the elderly. 7.3% are elderly.
The Bundesbank is applying the same interest rate to one-year deposits with effect from September 16th.
