FD Interest Rates: These 7 banks offer the highest interest on their 1-year FDs

Before choosing a bank for a fixed deposit (FD) account, it’s wise to compare the interest rates offered by various banks. Typically, banks offer lower interest rates on short-term FDs and higher rates on long-term deposits. This means a three-year FD generally has a higher interest rate compared to a one-year FD.

Depositors often opt for banks where they have long-term relationships. However, when the interest rate difference is significant, it's common to switch banks to earn a higher return.

Here, we highlight the interest rates offered by the top seven banks for one-year FDs:

Top 7 Banks Offering the Highest Interest Rates on 1-Year FDs

1. HDFC Bank

General Citizens: 6.6%

Senior Citizens: 7.1%

Effective from: July 24, 2024

2. ICICI Bank

General Citizens: 6.7%

Senior Citizens: 7.20%

Tenure: 1 year to 15 months

3. Kotak Mahindra Bank

General Citizens: 7.1%

Senior Citizens: 7.6%

Effective from: June 14, 2024

4. Federal Bank

General Citizens: 6.8%

Senior Citizens: 7.3%

Effective from: October 16, 2024

5. State Bank of India (SBI)

General Citizens: 6.8%

Senior Citizens: 7.3%

Effective from: June 15, 2024

6. Punjab National Bank (PNB)

General Citizens: 6.85%

Senior Citizens: 7.35%

Effective from: October 1, 2024

7. Canara Bank

General Citizens: 6.85%

Senior Citizens: 7.35%

Effective from: June 11, 2024

Comparing these rates can help you decide which bank to choose for your fixed deposit. While interest rates are a significant factor, consider other aspects such as customer service, ease of account management, and additional benefits offered by the bank.