Fixed deposits are a popular form of investment for those who want to keep their money safe while also earning attractive interest rates. Most leading banks and other financial institutions offer fixed deposits with flexible investment tenures that offer guaranteed returns upon maturity. Senior citizens are offered additional interest of up to 0.50% p.a. depending on the bank. The 1-year tenure is one of the short-term tenures that offer an attractive rate of return for fixed deposits. It helps to compare the interest rates for this tenure across leading banks and financial institutions in order to decide the best possible one for you.
Given below is the updated list of banks that pay the highest interest on fixed deposit schemes.
|Top 10 1-year FDs for 2021|
|Bank||Regular FD Rates (per annum)||Senior Citizen FD Rates (per annum)|
|ESAF Small Finance Bank||6.50%||7.00%|
|Kerala Transport Development Finance Corporation Limited (KTDC)||6.00%||6.25%|
|Utkarsh Small Finance Bank||6.75%||7.25%|
|Shriram City Union Finance||7.25%||7.65%|
|LIC Housing Finance Limited||5.50%||5.75%|
|Fincare Small Finance Bank||6.00%||6.50%|
|ICICI Home Finance||4.30%||4.55%|
*The Interest rates are subject to change and can be revised at the discretion of the bank
Yes, most banks and NBFCs give you the option to open an FD account online.
Yes, the FD account can be renewed.
Yes, the amount can be withdrawn before the account matures. However, a penalty may be levied for premature withdrawal.
The minimum tenure of the FD account offered by KTDFC is 1 year.
The minimum tenure of the FD account offered by Repco Bank is 1 year.
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