Fixed Deposits (FDs) remain a popular savings and investment option in India. In FDs, investors deposit their money for a fixed period at a predetermined interest rate to banks and financial institutions.
Unlike stock-linked mutual funds, FDs offer stability and guaranteed returns. Their main purpose is capital preservation with steady growth. This makes them useful for risk-averse investors and short-term financial goals.
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Some of the top benefits of FDs include assured interest, flexible tenures, and higher returns than regular savings accounts. These are offered by banks, small finance banks, and post offices and widely available via online or offline means. But to maximise the returns from FDs, it is crucial to understand which lenders are offering higher rates, more flexibility and features.
Top state lenders such as State Bank of India, Punjab National Bank, and private banks like HDFC Bank, Yes Bank, along with small finance banks, offer fixed deposits with varying rates. For example, SBI offers around 6.25% for 1–2 years, HDFC Bank offers 6.25% for 1 year to under 15 months, and Federal Bank offers 6.25% for 1 year. Utkarsh Small Finance Bank offers about 6.00% for 181–370 days.
Customers should note that interest rates vary by tenure and bank type. It is advised to thoroughly check the rates and features offered by different banks before committing to any FD.
Check Rates For 1-Year Deposits:
SBI -1 year to less than 2 years - 6.25%
HDFC Bank - 1 year to < 15 months - 6.25%
Yes Bank - 336 days to < 12 months - 6.66%
Punjab National Bank - 1 year - 6.25%
IndusInd Bank - 1 year to below 1 year 6 months - 6.75%
Bank of India - 1 year - 6.50%
Federal Bank - 1 year - 6.25%
Utkarsh Small Finance Bank - 181 days to 370 days - 6.00%
Suryoday Small Finance Bank - 1 year - 7.25%
Canara Bank - 1 year and above to 1 year 3 months - 6.25%
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Note: All rates sourced from respective bank websites.
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