Best FD Interest Rates for 1 Year 2020

Given below is the updated list of 10 banks that pay the highest interest on fixed deposit schemes with a 1-year tenure in 2020:

*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.

Key FD highlights for 1-year tenure

• The highest interest rate offered on the 1-year tenure is 8.75% p.a. for general public and 9.25% p.a. for senior citizens by ESAF Small Finance Bank
• The second best FD interest rate if being offered by KTDC and Utkarsh Small Finance Bank where the interest rate paid for the 1-year deposit is 8.50% p.a. for general public and 9.00% p.a for senior citizens
• Attractive interest rates are offered on 1-year term deposits and they range from 7.70% p.a. to 8.75% p.a. for the general public
• For senior citizens the interest rate ranges from 8.20% p.a. to 9.25% p.a. for the 1-year tenure
• ESAF, KTDC, and Utkarsh Small Finance Bank all offer interest rates of 8.50% or above for the one-year term deposits

List of 10 best FD schemes for 1 year

1. 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 9.25% p.a. to senior citizens for FDs opened for a period of 1 year
• ESAF offers the highest rate of interest of 8.75% p.a. for the general public
• All deposits are for less than Rs.1 crore

2. 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.
• An interest rate of 8.50% p.a. is paid to the general public while 8.75% 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.

3. 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 8.00% p.a. for the general public and 8.50% p.a for the senior citizens
• Attractive and competitive interest rates are offered

4. 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 8.50% p.a. on 1-year term deposits that are less than Rs.2 crore
• For senior citizens the interest rate offered is 9% p.a.
• 1% fee levied in case of premature withdrawal

5. 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 8.25% p.a.
• The interest rate offered for senior citizens is 9.50% p.a.

6. LIC Housing Finance Ltd

• LIC Housing Finance Ltd is one of the NBFCs that provide competitive interest rates.
• An interest rate of 8.15% 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 8.40% p.a. for deposits up to Rs.20 crore

7. 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 7.70% p.a. for general public and 8.20% p.a. for senior citizens
• Minimum period of 1 year and maximum period of 5 years

8. ICICI Home Finance

• ICICI Home Finance offers good interest rates and their deposit schemes are well-rated.
• An interest rate of 7.9% 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

9. RBL Bank

• RBL Bank FDs can be opened at the click of a button and offers many perks to investors.
• The interest rate of 8% p.a. is offered for deposits up to Rs.3 crore
• For senior citizens, the bank offers an additional interest rate of 0.50%

10. 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 7.75% p.a. to general citizens
• For senior citizens the rate of interest offered by the bank is 8.35% p.a.