• Best FD Interest Rates with 1-Year Tenure in 2021

    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.

    FD Interest Rates with a 1-year Tenure

    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%
    Repco Bank 6.25% 6.75%

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

    Key FD highlights for 1-year tenure

    • Attractive interest rates are provided.
    • Senior citizens are provided an additional interest rate.
    • The highest interest rate is offered by Shriram City Union Finance.

    List of best FD schemes for 1-year tenure

    ESAF Small Finance Bank

    • ESAF Small Finance Bank is an NBFC that has a 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 7.00% p.a. to senior citizens for FDs opened for a period of 1 year.
    • ESAF offers a rate of interest of 6.50% p.a. for the general public.
    • All deposits are for less than Rs.2 crore.

    KTDC

    • KTDC is an undertaking by the Kerala government. At present, it offers the best FD rates in 2020 for 1-year term deposit schemes.
    • AAn interest rate of 6.00% p.a. is paid to the general public while 6.25% 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.

    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 6.75% p.a. on 1-year term deposits that are less than Rs.2 crore.
    • For senior citizens, the interest rate offered is 7.25% 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 7.25% p.a.
    • Senior citizens are offered 0.40% additional interest.
    • The interest rate offered for senior citizens is 7.65% p.a.

    LIC Housing Finance Ltd

    • LIC Housing Finance Ltd is one of the NBFCs that provide competitive interest rates.
    • An interest rate of 5.50% p.a. is offered on all deposits of up to Rs.20 crore.
    • Senior citizens are offered 0.25% additional interest.
    • For senior citizens, the rate of interest paid is 5.75% p.a. for deposits up to Rs.20 crore.
    • The interest is compounded on a yearly basis.

    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 6.00% p.a. for the general public and 6.50% p.a. for the senior citizens.
    • Attractive and competitive interest rates are offered.

    ICICI Home Finance

    • ICICI Home Finance offers good interest rates and their deposit schemes are well-rated.
    • An interest rate of 5.50% p.a. is offered for deposits made for a year.
    • Senior citizens are offered 0.25% additional interest which is 5.75% p.a.
    • They offer annual, quarterly, and monthly income plans.
    • Special interest rates are offered on various tenure.

    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.

    Frequently Asked Questions (FAQs)

    1. Do I have the option to open an FD account online?

      Yes, most banks and NBFCs give you the option to open an FD account online.

    2. Is it possible to renew the FD account?

      Yes, the FD account can be renewed.

    3. Can I withdraw the amount before the account matures?

      Yes, the amount can be withdrawn before the account matures. However, a penalty may be levied for premature withdrawal.

    4. What is the minimum tenure of the FD account offered by KTDFC?

      The minimum tenure of the FD account offered by KTDFC is 1 year.

    5. What is the minimum tenure of the FD account offered by Repco Bank?

      The minimum tenure of the FD account offered by Repco Bank is 1 year.

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