Despite the booming equity culture in India, the good old Fixed Deposit (FD) is still popular with a large number of depositors, even those who invest in the stock markets and mutual funds. The reason: they offer safe and predictable investment instruments and are vital to most portfolios.
Of the FDs of different tenures, the 1-year FD is popular for its flexibility. Let’s check what interest rates some of the major banks in the country are offering on 1-year FDs to its general customers and senior citizens.
State Bank of India (SBI)
State Bank of India, the biggest of all the commercial banks in India, offers 6.80% to its non-senior citizen customers and 7.30% to senior citizens. These rates apply to retail deposits, or deposits up to Rs 3 crore.
Punjab National Bank (PNB)
The second largest bank of India, Punjab National Bank, offers three different rates of interest on 1-year FDs to three baskets of customers. While the rate is 6.80% for those below 60 years, it rises to 7.30% for those above 60 years (senior citizens) and further to 7.60% for those above 80 years (super senior citizens). These rates are applicable after August 1, 2024.
Bank of Baroda (BoB)
For 1-year FDs, BoB offers 6.5% to general customers and 7.35% for senior citizens. This bank has an FD for a fixed period of 360 days and it offers 7.10% for general customers and 7.60% for senior citizens.
HDFC Bank
The largest private sector bank of India, HDFC Bank, offers 6.60% interest rates on FDs of 1-year tenure. The rate of interest jumps to 7.10% if a senior citizen makes the deposit.
ICICI Bank and Axis Bank
Another major private sector bank in the country, ICICI Bank, offers 6.70% to general customers and 7.20% to those aged more than 60 years. Axis Bank is offering identical interest rates on FDs on the same tenure. Remember Tax Deducted at Source (TDS) is applicable on the maturity amounts.
Fixed Deposits of 1-year tenure are extremely popular among many depositors. It allows them to park their funds for a short time and reinvest if the rates change in the future. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
