Best FD Rates 2025: How Much Will ₹1 Lakh Earn? Top Private & Government Bank Offers Inside

A one-year fixed deposit is a good option for investors who want fixed returns. It helps to meet short-term financial goals and also keeps money safe and liquid. But to get better benefits from a fixed deposit, it is important to choose the right bank. Interest rates are different in every bank.

Based on BankBazaar’s data till September 5, we have shared the best interest rates of private and public banks on one-year fixed deposits up to ₹1 crore. Let us see how much an investment of ₹1 lakh will grow in one year.

Best Private Banks for One-Year FD

1. IndusInd Bank: This bank gives the highest interest among private banks. It offers 7% interest on one-year FD. An investment of ₹1 lakh will become ₹1,07,000 in a year.
2. Kotak Mahindra Bank, Axis Bank, HDFC Bank: These banks give 6.60% interest. An investment of ₹1 lakh will become ₹1,06,600 on maturity.
3. ICICI Bank: It gives 6.40% interest. An investment of ₹1 lakh will become ₹1,06,400 after a year.

Best Government Banks for One-Year FD

• Bank of Baroda, Punjab National Bank: Both banks give 6.60% interest, which is the highest among government banks. An investment of ₹1 lakh will become ₹1,06,600 in a year.
• Canara Bank, Union Bank of India: These banks offer 6.50% interest. An investment of ₹1 lakh will become ₹1,06,500 on maturity.
• SBI: India’s largest bank gives 6.45% interest. An investment of ₹1 lakh will become ₹1,06,450 after a year.

RBI’s subsidiary, Deposit Insurance and Credit Guarantee Corporation (DICGC), gives insurance on deposits up to ₹5 lakh. This assures investors that their money is safe.