Fixed deposits are a very desirable form of investment as they are risk-free. This is because no matter how the market is, you will get the promised returns at the time of maturity. There is no danger of losing the invested amount. Many banks and NBFCs thus offer FDs with flexible tenures. Amongst these, the 1-year tenure is a very short tenure, which still earns an attractive interest on the fixed deposit. Let us now look at the best 10 fixed deposit schemes for 1-year tenure in 2024 in India. 

Top 10 1-year FD Schemes in 2024 

The table below contains some of the best 10 1-year FD schemes

Lender 

FD rates for regular citizens (Per annum)

FD rates for senior citizens (Per annum)

Bank of Baroda

6.85% 

7.35% 

DCB Bank FD 

7.15% 

7.65% 

ESAF Small Finance Bank FD

7.75% 

8.25% 

Fincare Small Finance Bank FD

6.25% 

6.85% 

LIC Housing Finance Limited FD 

7.25% 

Contact the bank 

Karnataka Bank FD 

7.1% 

7.5% 

Utkarsh Small Finance Bank FD 

7.75% 

8.35% 

Suryoday Small Finance Bank

6.85% 

7.35% 

Punjab and Sind Bank

6.40% 

6.90% 

Repco Bank 

6.75% 

7.25% 

Note: These choices are for this time based on the respective bank’s rates declared. They are subject to RBI policy changes and hence customers are advised to validate once before making any deposits. Also, the interest rates given above are as of May 2024 and are subject to change. For exact interest rates, contact the financial institution or refer to the FD page of the institution. 

How to Open an FD Scheme with a Tenure of 1 Year? 

You can open a fixed deposit either online or offline. 

Online Mode: An FD account can be opened in a hassle-free manner. You can use your netbanking account or log into your mobile app to open an FD account. Once logged in, raise a request to open an FD. Enter the details of the FD amount, type of FD, and maturity instructions. You will receive an OTP, and you will have to validate the transaction through an OTP. 

Alternatively, you can also open an FD account through various apps. Here, you have to add the bank account details, FD amount, type of FD, and maturity instructions. 

Offline Mode: You can go to the nearest branch of your bank or NBFC to open the account. You have to fill out an application form and submit it along with the appropriate documents to a representative of the bank. An FD receipt will be given to you once you open the fixed deposit. 

Key Features of the 1-year Tenure FDs

1. Bank of Baroda 

  • Senior citizens are eligible for an extra interest rate of 0.50% above the regular rates.

  • The minimum deposit amount required for a Bank of Baroda FD is Rs 10,000

  • Nomination facility is available.

  • Interest is paid only at the time of maturity

  • Loan against FD is given. Up to 90% of the amount of your FD may be borrowed.

2. DCB Bank

  • DCB Bank offers preferential interest rates for senior citizens. Senior citizens can enjoy a bonus interest rate of 0.50% over regular rates. 

  •  The minimum deposit amount for DCB fixed deposits is INR 10,000. For tax-saving deposits, it is INR 100. There is no upper limit on the investment amount except for tax-saving FDs, which is 1.5 lakhs.
  • Nomination facility is provided by DCB Bank.
  • Loan against FD can be availed, and the bank gives about 80% of the deposit amount as loan. 

3. ESAF Small Finance Bank

  • This NBFC boasts its presence in rural, semi-urban, and urban areas. 
  • It offers the best interest rate in the industry
  • It offers an interest rate of 8.25% p.a. to senior citizens 
  • For the general public, it offers an interest rate of 7.75% 
  • The deposit amount is less than Rs. 2 crores. 
  • Loan against FD can be taken

4. Fincare Small Finance Bank FD

  • The bank offers a wide range of term deposit schemes and flexible repayment options. 
  • Attractive and competitive interest rates are offered.
  • Interest payout options are flexible. You can choose between a monthly, quarterly, or cumulative payout. 

5. Karnataka Bank FD

  • You can open a fixed deposit account by investing just Rs. 100
  • The bank offers flexible interest payout options. You can choose between a monthly, quarterly, half-yearly, or yearly payout option.
  • Karnataka Bank offers loans against fixed deposits. 

6. LIC Housing Finance Limited FD 

  • The NBFC provides competitive interest rates on fixed deposits 
  • Senior citizens are given a bonus interest rate of 0.25%
  • Interest is compounded annually. 

7. Punjab and Sind Bank 

  • Punjab and Sind Bank offers a broad range of term deposit schemes and flexible tenure options.
  • The minimum deposit amount required to open a fixed deposit is 
  • Extra interest for senior citizens and staff members of PSB.
  • FD accounts can be opened in the name of a minor also. 
  • Nomination facility is available.

8. Repco Bank 

  • Repco Bank offers a wide range of time deposit options for both general citizens and those above 60.
  • The Minimum period of deposit is 1 year and maximum period is 5 years.
  • Loans can be availed against the FD
  • Accounts can either be single or joint. 
  • The bank offers flexible interest payout options. The interest can be paid either monthly, quarterly, or half-yearly. 

9. Suryoday Small Finance Bank 

  • You can open a fixed deposit with a minimum amount of Rs. 1000 and after that in multiples of 1. 
  • An additional 0.5% interest rate is offered to senior citizens. 
  • Calculation of interest is done quarterly.
  • Suryoday Bank facilitates the premature withdrawal of a fixed deposit. However, there is a penalty of 1% on premature closure.

10. Utkarsh Small Finance Bank FD

  • Utkarsh Small Finance Bank offers a broad range of features and benefits on its FD schemes.
  • Utkarsh Small Finance Bank is one of the highest interest-paying term deposit options.
  • The interest that is payable to the general public is 7.75% p.a. And for senior citizens, it is 8.35% p.a. For amounts less than Rs. 2 crores. 
  • A penalty of 1% is charged in case of premature withdrawal.

Disclaimer: The features of the fixed deposits specified above are as of 08/05/2024 and are subject to change. For the exact features, refer the websites of the respective banks or contact the respective banks.

Conclusion 

Whenever you choose to take a fixed deposit, always compare the interest rates, tenure flexibility, interest payout options, and other features of FDs from top financial institutions. Choosing an FD after making a thorough analysis will be ideal, since you can then opt for the one most suitable for you. 

FAQs on FD Interest Rates for 1 Year

1. What is a 12-month fixed deposit?

A 1 year fixed deposit is a savings account in which your funds are invested for 12 months. It comes with a fixed interest rate and a duration of 12 months. You will not be able to make any withdrawals from this account for the full term of the deposit. 

2. How can I get maximum benefit in FD?

You can get the maximum benefit from FD by breaking the amount into fractions and investing them in different schemes for varied investment tenures.

 

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.