Which is Best Bank for 1 year fixed deposit in India ?

One of the most popular investment options in India is Fixed deposits. These fixed deposit products are usually offered by the banks, both public and private banks, and non-banking finance companies. You get the best FD rates in India, which is one of the main reasons why more and more people are interested in investing in fixed deposits. The interest rates vary from normal public to senior citizens. Senior citizens get the best interest rate on FD compared to the general public.

When you invest for a certain period, you will receive your invested amount along with interest after the completion of the duration. The best part about the fixed deposit plans is that you can invest for as low as seven days and as high as ten years. That means you are completely flexible in choosing the duration of your investment. Therefore, both long-term investors and short-term investors will be able to find perfect plans for them.

So, if you are looking for the best FD plans and which bank is best for fixed deposit, this article can help you. Like already discussed, we have both public and private banks that offer you good FD plans with the best FD rates in India.

Best Interest Rates in Public banks for One Year Fixed Deposit Plans in India

best fixed deposit

Here are some public banks that offer the best one year FD plans:

  • Union Bank: The first public bank on our list is Union Bank, and it offers the best fixed deposit rates in India.The regular interest on FD is 5.25 percent, and for senior citizens, the interest rate is a bit high, 5.75 percent. This is the highest interest rate offered by public banks.
  • Canara Bank: The next best bank that offers you a good interest rate on one year fixed deposit plan is Canara Bank. The amount should be less than two crores. The interest rate for senior citizens is 5.70 percent, and the general interest rates are 5.20 percent.
  • Punjab and Sind Bank: Another good bank that you can consider is Punjab and Sind bank. They have an interest rate of 5.15 percent for the general public and 5.65 percent for senior citizens. The interest rates are effective from 16th May 2021, they are the latest and Best FD interest rates.
Banks Regular FD Rates Senior Citizen FD Rates W.e.f.
RBL Bank 6.10% 6.60% 1 June, 2021
IndusInd Bank 6.00% 6.50% 4 June, 2021
Yes Bank 6.00% 6.50% 3 June, 2021
DCB Bank 5.70% 6.20% 15 May, 2021
Bandhan Bank 4.50% 5.25% 7 June, 2021

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Best FD Rates in Private Banks with one year fixed deposit plans in India

Here are some private banks that offer the best one year FD plans:

  • RBL bank: You get higher and best FD rates in India with private banks. At RBL bank, you will get an interest of 6.10 percent for the general public and 6.60 percent for senior citizens. This is quite a good interest rate for those who wish to invest for good returns.
  • IndusInd Bank: IndusInd is one of the most popular private banks in India with customer service. They have many different products and services for all their customers. They offer different schemes and plans depending on the requirement of the customers. This ban offers a 6.0 percent interest rate for the general public and 6.5 percent for senior citizens.
  • Yes Bank: This banking company is also good at providing the best investment plans for their customers. The latest FD interest rates effective from 3rd June 2021 are 6.0 percent for the general public and 6.50 percent for senior citizens. This is quite to the interest rates offered by the IndusInd Bank.
Banks Regular FD Rates Senior Citizen FD Rates W.e.f.
Union Bank 5.25% 5.75% 15.12.2020
Canara Bank 5.20% 5.70% 08.2.2021
Punjab & Sind Bank 5.15% 5.65% 16 May, 2021
Indian Overseas Bank 4.90% 5.40% 09.11.2020
Bank of India 4.50% 5.00% 1 June, 2021

You just need to remember that the interest rates discussed above are for an amount less than two crores. Also, the tenure or the duration of the investment plans is only one year. Therefore, depending on the duration, the interest can vary for both the general public and senior citizens.

After completing the duration, you can opt for the auto-renewal option if you wish to continue the policy after one year. There is also a provision to withdraw the amount invested on fixed deposit at any time without any problem. You will receive interest for the number of days that you have invested along with the amount that you have invested in the fixed deposit. The bank FD interest rate will keep changing from time to time, and it will be updated on their official website. So, you can check the details on the website before investing in the fixed deposits.

You can now pick any private bank or public bank of your choice after checking their interest rates and other details and start your FD investments today.

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