For short-term purposes, most investors favour fixed deposits (FDs), since they are secure and returns are guaranteed. Interest rates on FDs have significantly decreased in the last year, because the Reserve Bank of India (RBI) has gradually lowered repo rates. Hence, banks have taken the same path and have managed to slash interest rates through tenures on fixed deposits. For a one-year term, as many as five financial institutions and two small finance banks are providing FDs with rates of 6% or more. IndusInd Bank, RBL Bank, IDFC First Bank, Yes Bank and DCB Bank pay interest on their one-year FDs from 6.5-7 per cent. And on the other side Ujjivan Small Finance Bank, AU Small Finance Bank usually offer higher rates of 6.5% and 6% respectively on 1 year fixed deposits.
The two leading banks of India SBI and Bank of Baroda are offering an interest rate of 5.10% and Axis Bank, HDFC Bank and ICICI Bank provide 5.15 per cent, 5.10 per cent and 5 per cent respectively on 1 year FD. An investor can invest from a minimum of Rs.100 to Rs.10,000 on 1 year fixed deposit. So let's take out a look on some banks that offer interest rates of up to 7 percent on one-year FDs.
|Sr No.||Bank||Interest for regular citizens|
|3||IDFC First Bank||6.75%|
|6||Ujjivan Small Finance Bank||6.50%|
|9||AU Small Finance Bank||5.50%|
|10||Karur Vyasa Bank||5.50%|