• Best FD Interest Rates for 1 Year 2020

    FD Interest Rates with a 1-year Tenure

    Given below is the updated list of 10 banks that pay the highest interest on fixed deposit schemes. Last Updated on 12 Aug 2020

    Top 10 1-year FDs for 2020
    Bank Regular FD Rates (per annum) Senior Citizen FD Rates (per annum)
    ESAF Small Finance Bank 6.25% 6.75%
    Kerala Transport Development Finance Corporation Limited (KTDC) 8.00% 8.25%
    Utkarsh Small Finance Bank 6.50% 7.00%
    Shriram City Union Finance 7.80% 8.05%
    LIC Housing Finance Limited 7.00% 7.25%
    Fincare Small Finance Bank 6.50% 7.00%
    ICICI Home Finance 6.85% Contact the Bank
    Lakshmi Vilas Bank 6.00% 6.50%
    Repco Bank 6.25% 6.75%

    *The Interest rates are subject to change and can be revised at the discretion of the bank

    There are many banks and financial institutions that offer attractive interest rates for 1-year fixed deposits (FDs). Time deposits are one of the best investment options that offer a guaranteed rate of return after a certain set period of time. It is considered a safe and reliable type of investment for cautious investors who do not want to take risks. In a deposit account, a certain sum of money is deposited for a predetermined tenure, and interest can be earned on the same. Investors can choose from a wide range of term deposit options available in the market. There are short, medium and long-term fixed deposits. Opening a fixed deposit account is a simple process and can be done online with minimum documentation.

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    Key FD highlights for 1-year tenure

    • The highest interest rate offered on the 1-year tenure is 8.00% p.a. for general public and 8.25% p.a. for senior citizens by the Kerala Transport Development Finance Corporation Limited (KTDC).
    • The second best FD interest rate if being offered by Shriram Union City Finance where the interest rate paid for the 1-year deposit is 7.80% p.a. for general public and 8.05% p.a. for senior citizens.
    • Attractive interest rates are offered on 1-year term deposits and they range from 6.25% p.a. to 8.00% p.a. for the general public.
    • For senior citizens the interest rate ranges from 6.75% p.a. to 8.05% p.a. for the 1-year tenure.
    • LIC Housing Finance, Shriram City Union Finance, and KTDC offer interest rates of 7.00% p.a. or above for the one-year term deposits.

    List of 10 best FD schemes for 1 year

    ESAF Small Finance Bank

    • ESAF Small Finance Bank is an NBFC that has presence in rural, semi-urban and urban areas. The small finance bank offers the best interest rates in the industry, and other benefits.
    • They offer an interest of 6.75% p.a. to senior citizens for FDs opened for a period of 1 year.
    • ESAF offers the highest rate of interest of 6.25% p.a. for the general public.
    • All deposits are for less than Rs.1 crore


    • KTDC is an undertaking by the Kerala government. At present, it offers the best FD rates in 2020 for 1-year term deposit schemes.
    • An interest rate of 8.00% p.a. is paid to the general public while 8.25% p.a. is paid to senior citizens.
    • They offer Periodic Interest Payment Schemes (PIPS) and Money Multiplier Schemes (MMS).
    • The minimum tenure is 1 year, while maximum tenure is 5 years.

    Fincare Small Finance Bank

    • Fincare Small Finance Bank offers a wide range of term deposit schemes and flexible tenure options.
    • The interest rate offered for 1 year deposits is 6.50% p.a. for the general public and 7.00% p.a for the senior citizens
    • Attractive and competitive interest rates are offered

    Utkarsh Small Finance Bank

    • Utkarsh Small Finance Bank FD schemes come with a wide range of features and benefits. This is one of the highest interest paying term deposit options.
    • The interest that is payable to the general public is 6.50% p.a. on 1-year term deposits that are less than Rs.2 crore
    • For senior citizens the interest rate offered is 7.00% p.a.
    • 1% fee levied in case of premature withdrawal

    Shriram City Union Finance

    • Shriram City Union Finance term deposits come in two variants: cumulative and non-cumulative.
    • The interest payout options include monthly, quarterly, half-yearly, and yearly
    • The interest rate offered for yearly, non-cumulative FDs is 7.80% p.a.
    • The interest rate offered for senior citizens is 8.05% p.a.

    LIC Housing Finance Ltd

    • LIC Housing Finance Ltd is one of the NBFCs that provide competitive interest rates.
    • An interest rate of 7.00% p.a. is offered on all deposits of up to Rs.20 crore
    • The interest is compounded on a yearly basis
    • For senior citizens the rate of interest paid is 7.25% p.a. for deposits up to Rs.20 crore

    Repco Bank

    • Repco Bank is a well-known bank that offers a range of time deposits options for both regular depositors and those above 60.
    • The interest rate paid is 6.25% p.a. for general public and 6.75% p.a. for senior citizens
    • Minimum period of 1 year and maximum period of 5 years

    ICICI Home Finance

    • ICICI Home Finance offers good interest rates and their deposit schemes are well-rated.
    • An interest rate of 6.85% p.a. is offered for deposits made for a year
    • They offer annual, quarterly and monthly income plans
    • Special interest rates are offered on various tenure

    Lakshmi Vilas Bank

    • A wide range of time deposits options are available through Lakshmi Vilas Bank.
    • The rate of interest for 1-year deposits provided is 6.00% p.a. to general citizens
    • For senior citizens the rate of interest offered by the bank is 6.50% p.a.

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