Fixed deposits (FDs) are a very favourable form of investment for many people thanks to its nature of being a risk-free instrument in the financial market. It provides you with fixed returns in a stable manner over a pre-defined period of time and it is not dependent on any market-based returns. It is for this reason that fixed deposits are a preferred means of investment for many general citizens and well as senior citizens who are looking to bolster their personal savings over a period of time. Alongside providing assured returns to one’s deposits, FDs allow for more flexibility of tenure which can range anywhere from seven days to 10 years. This allows investors to make said investment for short-term, mid-term and even long-term saving returns. In recent years the FD rates have been falling, and this trend can be attributed to the fragility of the economy, and with the recent havoc of the pandemic, that trend is even more pronounced. The downward trend can also be attributed to rate cuts by central banks across the world in an attempt to provide some stimulus to the economy.
With that said, however, there are still ways to make the most of the fixed deposit mechanisms in place. In the event that you are looking to make an investment in the 1-year range, then here are four different financial categories, banking and otherwise, where you can make such an investment.
Best 1-Year Fixed Deposits Rates Offered by Small Finance Banks
Small finance banks are currently providing the highest rates of interest on fixed deposits when compared to banks in the private sector and commercial sector. These banks are offering their customers an upper limit of 6.50 per cent of interest per year for their FDs.
Utkarsh Small Finance Bank: As of July 1, 2021, The Utkarsh Small Finance Bank provides a 1-year fixed deposit rate for regular citizens which stands at 6.50 per cent per annum. The same bank provides senior citizens with an FD rate of 7 per cent per annum.
Ujjivan Small Finance Bank: The Ujjivan Small Finance Bank revised its FD rates to 6.50 per cent per annum for the general citizen while senior citizens get a 7 per cent interest rate on their deposits. This revision came into effect as of March 5, 2021.
ESAF Small Finance Bank: The Evangelical Social Action Forum (ESAF) Small Finance Bank also offered the general citizen an interest rate of 6.50 per cent for their FDs which came into effect on May 2, 2021. Similarly, senior citizens received a 7 per cent interest rate per annum.
Suryoday Small Finance Bank: Going to the lower end of the interest rates, the Suryoday Small Finance Bank offers its bank goers an average fixed deposit interest rate of 6.50 per cent per annum while senior citizens get 6.57 per cent. This revised rate list came into effect on June 21, 2021.
Equitas Small Finance Bank: The Equitas Small Finance Bank, which offers an average of 6.35 per cent interest rate for fixed deposits. Senior citizens can avail a rate of 6.85 per cent on their FDs as of June 1.