Before investing in a fixed deposit (FD), it is common, and even advisable, for investors to look for banks or financial institutions which offer highest interest rates on their deposits. Although it is common for banks to offer higher rates for long-duration deposits, one can still opt for short-term deposits to meet early financial goals.
Here we list out the top seven banks which offer the highest interest rates on their one-year fixed deposits (FDs). It is understandable that these rates would be lower than the rates offered by banks on long-term deposits such as for 3-years or five-years.
As we examine the past one year deposits, we realise that most banks give a range of 6.60 to 7.10 percent on their one year deposits with the highest (7.1%) being offered by Kotak Mahindra Bank. Meanwhile, senior citizens are entitled to receive an extra 50 basis points, thus raising the range of interest rate to anywhere between 7.1 to 7.60 percent.
Regular & Senior citizens
As we can see in the table below, HDFC Bank offers 6.6 percent to its regular depositors for one year FD, and 7.10 percent to senior citizens per annum These rates came into force on July 24, 2024.
ICICI Bank offers 6.7 percent on its one-year deposits and 7.2 percent to senior citizens.
Kotak Mahindra offers 7.1 percent to depositors and 7.6 percent to senior citizens. These rates came into effect from June 14, 2024. Meanwhile, State Bank of India (SBI) offers 6.8 percent to general citizens and 7.3 percent to senior citizens. These rates came into effect on June 15.
Bank of Baroda offers 6.85 percent to general citizens and 7.35 percent to senior citizens, which came into force on October 3, 2024. Punjab National Bank also revised its rate early this month on October 1. And it now offers 6.8 percent to general citizens and 7.3 percent to senior citizens.
Federal Bank also offers the same rates on its one-year deposits which came into force on Sep 16.