Top 10 Fixed Deposit Rates for 1 Year Deposits

Overview

Fixed Deposits are a wonderful tool through which to grow idle savings into sizable amounts of money. Decades ago, investors realised that a lot of research and investigation is required to find the best fixed deposit scheme in terms of interest rates and terms and conditions, and also the reliability of the financial institution providing the deposit facility. The safety and reliability of fixed deposits are what made them widely considered as a viable investment option. There are many different categories of fixed deposit plans in India. Depositors are given options of different payout frequencies and also given various tenures to choose from. This allows maximum flexibility. Short term fixed deposit accounts give the depositor the freedom of liquidity while still earning maximum possible returns.

Top 10 Fixed Deposit schemes for 1 year tenure

Listed below are some of the best schemes for a tenure of 1 Year.

1. Shriram City Union Fixed Deposit for 1 Year

   Despite being an NBFC, Shriram City Finance is one of the most successful and trusted fixed deposit providers in the country. This NBFC offers an interest rate of 8.42% under the monthly compounding system, and 8.48% under the quarterly compounding system.

   Example: For an investment of Rs.2 lakh:

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under monthly compounding at 8.42%	Rs.2 lakh	1 year	Rs.2,17,505
   Under quarterly compounding at 8.48%	Rs.2 lakh	1 year	Rs.2,17,507

2. RBL Bank One Year Fixed Deposit

   One of the most trusted but least advertised private sector banks in India – RBL Bank – has a range of options for fixed deposits in terms of tenure. The interest rates vary between 8.14% and 8.24% for deposits up to 1 year, depending on the amount invested. Senior citizens get a preferential interest rate ranging between 8.77% and 8.67%, depending on the amount invested, for the same tenure. The bank offers 5 different FD plans, depending on the needs of the customer.

   Example: For an investment of Rs.2 lakh:

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under monthly compounding at 8.24%	Rs.2 lakh	1 year	Rs.2,17,117
   Under quarterly compounding at 8.48%	Rs.2 lakh	1 year	Rs.2,17,507

3. Bandhan Bank 1 Year Fixed Deposit:

   This bank offers 2 FD schemes that can be chosen depending on the requirement of the customer. Compounding frequency can be chosen as either monthly or quarterly, and the interest rate is a flat 8% for the tenure of 1 year.

   Example: For an investment of Rs.2 lakh:

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under monthly compounding at 8.00%	Rs.2 lakh	1 year	Rs.2,16,600
   Under quarterly compounding at 8.48%	Rs.2 lakh	1 year	Rs.2,16,486

4. Mahindra Finance Fixed Deposit for 1 Year:

   This private NBFC provides higher interest rates than most banks, and has been around long enough to be widely considered a trusted name in personal finance. Senior citizens get an additional 0.25% on the interest rate through Mahindra finance. Mahindra Finance offers 8.00% interest on its fixed deposits. Interest is compounded either quarterly or half-yearly.

   Example: For an investment of Rs.2 lakh:

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under quarterly compounding at 8.00%	Rs.2 lakh	1 year	Rs.2,16,486
   Under half-yearly compounding at 8.48%	Rs.2 lakh	1 year	Rs.2,16,320

5. Shriram Transport Finance Company 1 Year Fixed Deposit:

   This is an NBFC that’s expanded its operations from offering financing for those that require transportation related assets and has moved into deposits, etc. Interest can be compounded in these deposits on a monthly, quarterly, half-yearly, and yearly basis. Interest rates offered are 7.95% for monthly compounding, 8.00% for quarterly compounding, 8.08% for half-yearly compounding, and 8.25% for annual compounding.

   Example: For an investment of Rs.2 lakh

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under monthly compounding at 7.95%	Rs.2 lakh	1 year	Rs.2,16,492
   Under quarterly compounding at 8.00%	Rs.2 lakh	1 year	Rs.2,16,486
   Under half-yearly compounding at 8.08%	Rs.2 lakh	1 year	Rs.2,16,486
   Under yearly compounding at 8.25%	Rs.2 lakh	1 year	Rs.2,16,500

6. Indian Post Office Fixed Deposit for 1 Year Tenure:

   The Indian Post Office offers the most widely available fixed deposit schemes in the country. Also, this institution provides a lower interest rate as compared to most banks and NBFCs but is arguably the most trustworthy place in which to park your funds. Interest is compounded quarterly, but paid annually, and is currently being offered at 7.1% for a tenure of 1 year.

   Example: For an investment of Rs.2 lakh:

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under quarterly compounding at 7.10%	Rs.2 lakh	1 year	Rs.2,14,583

7. Sundaram Finance Fixed Deposit for 1 Year:

   Another very successful and widely trusted NBFC that offers fixed deposits is the Sundaram Finance NBFC. Investors are offered the choice of having interest compounded monthly or quarterly. The deposits can be made for a tenure of one year and interest is compounded monthly at the rate of 7.95%, and quarterly at the rate of 8.00%.

   Example: For an investment of Rs.2 lakh:

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under monthly compounding at 7.95%	Rs.2 lakh	1 year	Rs.2,16,492
   Under monthly compounding at 8.00%	Rs.2 lakh	1 year	Rs.2,16,486

8. LIC Housing One Year Fixed Deposit:

   The LIC Housing Finance Company has been rated FAAA by CRISIL, and offers interest rates on par with most banks and leading NBFCs for deposits of 1 year tenure. Senior citizens are offered an additional interest rate of 0.10% on top of the advertised interest rate which is 8.25% for fixed deposits of a 1 year tenure. Interest compounds annually only.

   Example: For an investment of Rs.2 lakh:

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under annual compounding at 8.25%	Rs.2 lakh	1 year	Rs.2,16,500

9. ICICI Home Finance 1 Year FD:

   The minimum deposit tenure offered by the ICICI Housing Finance Company is 1 year. Interest can be compounded annually, quarterly, or monthly. The current interest rates are 7.90% for the monthly compounding option, 7.95% for the quarterly compounding option, and 8.20% for the annual compounding option.

   Example: For an investment of Rs.2 lakh:

   Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
   Under monthly compounding at 7.90%	Rs.2 lakh	1 year	Rs.2,16,385
   Under quarterly compounding at 7.95%	Rs.2 lakh	1 year	Rs.2,16,380
   Under annual compounding at 8.20%	Rs.2 lakh	1 year	Rs.2,16,400

10. IndusInd Bank FD for 1 Year Tenure:

    One of the better options to take a fixed deposit out from a private sector bank is the IndusInd Bank. Investors in this FD can make partial withdrawals from their accounts. The interest rate currently is 7.50%, which is lower than most other offerings, but comes from an institution that’s been rated as one of the most trustworthy and reliable in this kind of business.

    Example: For an investment of Rs.2 lakh:

    Interest compounding	Amount invested	Tenure	Total amount earned at the end of tenure
    Under annual compounding at 7.50%	Rs.2 lakh	1 year	Rs.2,15,000

*Please note that all promotions, amounts, tenures, repayment requirements, time frames, interest rates, other rates, charges, fees, ceilings, requirements, criteria, features, benefits, exclusions, calculations, ratios, ratings, terms and conditions mentioned above are as of June, 2016, and are subject to change at any time. All banks / NBFCs / insurance providers / financial service providers / companies, etc. mentioned above retain all rights to modify, replace, or add to or subtract from any of the above, in any way, at any time, and at their own discretion. You are requested to reconfirm the same with your chosen bank / company / NBFC / insurance provider / financial service provider, etc. before making any financial commitments.

Updated on 22 June ‘16