In today’s uncertain economic situation, many people prefer fixed deposits (FDs) as a safe investment option. Especially for those looking at short-term investments, a one-year FD proves to be a good choice. Several banks are currently offering attractive interest rates on one-year FDs. Below are the interest rates offered by leading private and public sector banks, along with the potential returns on investment.
Attractive Rates in Private Banks:
1. IndusInd Bank
Among private banks, IndusInd Bank offers the highest interest rate of 7% on a one-year FD. This means, if you invest ₹1 lakh in the bank, after one year you will earn ₹7,000 in interest, receiving a total of ₹1,07,000.
2. Kotak Mahindra Bank
Kotak Mahindra Bank offers 6.60% interest on a one-year FD. An investment of ₹1 lakh will yield ₹6,600 in interest, giving you ₹1,06,600 on maturity.
3. ICICI Bank
ICICI Bank provides 6.40% interest for a one-year FD. This means, an investment of ₹1 lakh will return ₹1,06,400 at maturity.
Competition Among Public Sector Banks:
1. Bank of Baroda, Punjab National Bank, and Union Bank of India
These three leading public banks are offering the highest rate of 6.60% on a one-year FD. For a ₹1 lakh investment, you will receive ₹1,06,600 on maturity.
2. Canara Bank
Canara Bank provides 6.50% interest for a one-year FD, resulting in ₹1,06,500 for a ₹1 lakh investment.
3. State Bank of India (SBI)
India’s largest bank, SBI, offers an interest rate of 6.45% on one-year FDs. This means a ₹1 lakh investment will return ₹1,06,450 on maturity.
How Safe Is Your Money?
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, insures FDs up to ₹5 lakh, ensuring investors’ money remains secure. However, it is important to remember that returns from FDs are subject to taxation.