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.
Many small finance banks in the country offer more than 8% per annum on 1-year fixed deposits. This is a great investment choice for those who have a lump sum in hand and are wondering where to put it.
For example, Utkarsh Small Finance Bank pays interest at the rate of 8.40% per annum for a tenure that ranges from 1 year to 455 days. For the same duration of investment, senior citizens will get paid at the rate of 8.90% per annum.
On the other hand, ESAF Small Finance Bank pays interest at the rate of 8.75% per annum for a 1 year tenure.
Other banks are also paying a high rate of return of more than 7% per annum such as AU Small Finance Bank.
16 May 2018
After reports surfaced that the Government has stopped the subscription for RBI Bonds Scheme, the Economic Affairs Secretary Subhash Chandra Garg took to Twitter to clear the doubts. He informed through a tweet that the RBI Bonds Scheme has not been closed but only been replaced by the 7.75% Savings Bond Scheme. The reports of closing the RBI Bonds Scheme also known as 8% Savings Bonds Scheme drew sharp reactions as it is one of the preferred choices. This is because the scheme provides regular guaranteed income.
The scheme is quite popular as it offers the investors a fixed interest rate of 8%. Apart from that, it enables investors to choose between cumulative and non-cumulative modes for the payment of interest. Other benefits associated with the scheme are that one can start with a mere investment of Rs. 1000, no maximum limit on the investments and the fact that the money deposited compounds on a half yearly basis.
2 January 2018
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