Are you planning to invest in fixed deposits for 1 year? Here are 5 banks that will give you the highest interest rates

Are you planning to invest in fixed deposits and wondering about the interest rates the bank would offer? As an investor, you must know that interest rates offered by banks vary for different time frames. So, depending upon your lock-in period, you should choose the bank to obtain the highest interest rate for profit margins.

If it is for one year you are planning to invest in a fixed deposit, then choose the bank that offers the maximum interest rate for a one-year duration only. Conduct a thorough analysis before investing in a fixed deposit with any particular bank.

Here are five top banks with their interest rates for one year:

State Bank of India (SBI):

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

SBI has a market cap of ₹734183.2 crore. The stock’s 52-week high price is 841.25 and recorded a 52-week low price of 543.2.

HDFC Bank

The largest private lender HDFC has an interest rate of 6.6% per annum on its one-year fixed deposit to regular citizens and 7.1% to senior citizens. These rates came into force on February 9, 2024.

HDFC Bank has a market cap of ₹1146936.5 crore. The stock soared to a 52-week high of 1757.5 and fell to a 52-week low of 1363.55. The last traded price (LPT) of the stock as of May 31, 2024, is 1525.

ICICI Bank

Private banking major, ICICI offers 6.7% on 1-year FDs to regular citizens and 7.2% to senior citizens. These rates were applicable from February 17 this year.

ICICI Bank has a market cap of ₹774744.1 crores. The 52-week high price of the ICICI stock is 1169.55 while the lowest price in the last 52 weeks is 899.

Kotak Mahindra Bank

Kotak Mahindra Bank offers an interest rate of 7.1% on a one-year fixed deposit to regular citizens and 7.6% to senior citizens. These latest FD rates became applicable on February 27, 2024.

Kotak Mahindra Bank has a market cap of ₹335533 crore. The 52-week high price of the Kotak Mahindra stock is 2064.4 while it traded at a 52-week lowest price of 1543.85.

Bank of Baroda

The state lender Bank of Baroda has an interest rate of 6.85% on its fixed deposits of one year duration to regular citizens and 7.35% to senior citizens. These rates came into force on Jan 15, 2024.

Bank of Baroda has a market cap of ₹136213.7. The bank’s stock peaked at 285.6 in the last 52 weeks and its 52-week lowest price is 182.1.

Meanwhile, the Reserve Bank of India is likely to cut down the repo rate towards the end of this year and as an investor. Once RBI slashes the repo rate, the banks also follow suit by reducing the interest rates on term deposits.