Planning to invest in a fixed deposit for 1 year: Top 5 banks offering highest interest rates

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When the Reserve Bank of India (RBI) is expected to cut down repo rate towards the end of the year, investors are recommended to lock their investments in fixed deposits (FDs) in order to make the most of the prevailing high interest rates.

It is worth mentioning that the repo rate cut is likely to kick off the onset of low interest rate cycle in the market. So, if RBI happens to slash the benchmark repo rate in this calendar year, banks would also follow suit by reducing the interest rates they offer on their term deposits.

Investors must be mindful of the fact that all the banks offer varying interest rates for different time periods. So, based on the time period for which you want to lock your fixed deposit, you should opt for the bank.

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If you are planning to invest in a fixed deposit for one year, it is vital that you check the interest rates offered by multiple lenders for one year duration only. Here we list out the interest rates offered by top banks for one year duration.

State Bank of India (SBI): The largest bank in the country offers 6.8 percent per annum on its 1-year fixed deposits to regular citizens and 7.3 percent to senior citizens. These are the latest interest rates which came into force on May 15, 2024.

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HDFC Bank: The largest private lender offers 6.6 percent per annum interest rate on its one-year fixed deposit to regular citizens and 7.1 percent to senior citizens. These dates came into force from Feb 9 this year onwards.

ICICI Bank: This private bank offers 6.7 percent on