Representative image.
Credit: iStock Photo
Fixed Deposit (FD) is a safe way of saving without market risks. An FD lets you have a safe investment along with gaining interest on it.
In FD one has to deposit a lumpsum amount in the bank for a fixed period of time on a fixed rate of interest. Once the deposit reaches the maturity term, the investor will receive the original amount of investment with the interest.
FDs are considered beneficial for achieving long-term financial goals as they are considered stable and assure growth in the investment.
Let us take a look at banks that offer highest FD interest rates for a one-year period term.
IndusInd Bank
IndusInd Bank tops the list offering 7 per cent interest rate, for a fixed period of two years. The investment approximately after two years would grow from a lakh to Rs 1,14,000.
Axis Bank, HDFC, Mahindra Bank
Axis bank, HDFC, Mahindra Bank offer similar interest rates on their Fixed Deposits. These three banks offer 6.6 per cent rate for two-year deposits. If you calculate the amount for 1 lakh, the amount that you get on hand once the FD matures would be Rs 1,13,200.
ICICI Bank
Offering an interest rate of 6.40 per cent, ICICI Bank is listed third. For a two-year FD in ICICI Bank, a deposit of Rs 1 lakh may upto Rs 1,12,800, after reaching the maturity date.
Canara Bank and Union Bank
Canara Bank and Union Bank, for a two-year period offer a 6.5 per cent interest rate. 1 lakh deposited for two years here, will mature to Rs 1,13,000.
SBI
State Bank of India (SBI) offers and interest rate of 6.45 per cent after two years. If Rs 1 lakh is invested, the amount would become Rs 1,12,900 after maturing.