Best FD Rates: Fixed Deposit or FD is still one of the most trusted places for Indians in terms of short-term investments. Especially for those who do not like to take risks and want to get guaranteed returns by keeping money for a short period of time like 1 year, FD is the first choice. From employees to senior citizens, 1-year FD schemes are quite popular with everyone. But not all banks offer the same interest. So before investing an amount like Rs 5 lakh, it is important to know where you can get the highest profit.
Who is ahead in 1-year FD?
Investors are usually torn between the security of government banks and the high interest rates of private banks. According to current market data, IndusInd Bank is outperforming others in terms of interest rates for a 1-year tenure. Government Equipment
Returns: The interest rate on 1-year FD in this bank is about 6.75%.
Calculation: That is, if you deposit Rs 5 lakh for 1 year, you will get back around Rs 5,34,614 at the end of the tenure. Which is higher than many other big banks.
Comparison of interest rates of big banks
The big government and private banks of the country are offering very competitive interest rates for a 1-year tenure to attract customers. State Bank of India (SBI), HDFC, ICICI, Axis and Canara Bank—all these top tier banks are currently offering interest rates of around 6.25% on 1-year FDs.
Investment results: If you invest Rs 5 lakh at this interest rate, you will get around Rs 5.32 lakh (approximately Rs 5,31,990) at the end of the tenure after 1 year.
SBI: Although SBI is a government bank, its interest rates may be slightly lower than private banks. However, 6.25% interest is not bad as a guaranteed return.
Bank of Baroda’s current rate
On the other hand, the state-owned Bank of Baroda is offering 6.10% interest on a 1-year FD. If you calculate, if you deposit Rs 5 lakh here, you will get back about Rs 5,31,205 after 1 year. Although this is slightly lower than other contemporary banks, many consider it safe since it is government-owned.
What to do before investing?
Before making an FD, it is not enough to just look at the interest rate, it is also important to check the credibility of the bank.
If you want the highest return, you can look at IndusInd Bank or a good quality private bank.
And if you want complete security despite the slight difference in interest rates, then it would be wise to choose a government bank like SBI or Bank of Baroda.
Remember, even a 0.50% interest difference on an investment of Rs 5 lakh can make a big difference in the amount of money at the end of the term.
Note: This report is for informational purposes only. Interest rates fluctuate in the market. Before investing, visit the official website of the respective bank and seek advice from a financial advisor if necessary.
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Avijit
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