Top 10 Banks Offering the Highest FD Interest Rates for 1-Year Tenure — Check the Complete List
FD Interest Rate Update, October 9, 2025: Fixed deposits (FDs) remain one of the safest and most popular investment options for Indian savers, especially those seeking stable returns without exposure to market risks. While inflation and repo rate changes have influenced deposit returns over the past few months, many leading public and private sector banks are now offering attractive interest rates on 1-year FDs.
Here’s a detailed look at the top 10 banks offering the highest interest rates on fixed deposits with a one-year tenure.
1. IndusInd Bank – 7% per annum
IndusInd Bank currently tops the list, offering 7% interest per annum on 1-year FDs. If you invest ₹1 lakh, it grows to ₹1,07,000 after one year. The bank’s FD schemes are known for flexible tenures and quick liquidity options, making them a preferred choice among short-term investors.
2. Axis Bank – 6.6% per annum
Axis Bank provides a 6.6% annual return on a 1-year FD. A ₹1 lakh investment becomes ₹1,06,600 at maturity. The bank also allows premature withdrawals with nominal penalties, offering convenience to customers.
3. HDFC Bank – 6.6% per annum
India’s largest private lender, HDFC Bank, offers 6.6% on 1-year FDs. A ₹1 lakh deposit will yield ₹1,06,600 after maturity. HDFC’s FDs are considered one of the most secure investment avenues, with the option to link deposits directly to your savings account for automatic renewals.
4. Kotak Mahindra Bank – 6.6% per annum
Kotak Mahindra Bank is another major private-sector bank offering 6.6% interest on 1-year deposits. Investors earning regular income can benefit from the monthly interest payout option.
5. ICICI Bank – 6.4% per annum
ICICI Bank offers 6.4% interest on 1-year FDs. A ₹1 lakh investment grows to ₹1,06,400 at maturity. The bank provides flexible FD options and an auto-renewal feature that helps maximize returns.
6. Bank of Baroda – 6.6% per annum
Among public-sector banks, Bank of Baroda is offering one of the highest FD rates at 6.6% for 1-year deposits. A ₹1 lakh deposit will yield ₹1,06,600 after a year. BoB’s FDs are known for their safety and reliability, making them a top pick for senior citizens.
7. Punjab National Bank (PNB) – 6.6% per annum
PNB matches the top-performing banks with a 6.6% annual return on 1-year FDs. A ₹1 lakh investment reaches ₹1,06,600 after one year. PNB also offers additional interest to senior citizens, enhancing their returns.
8. Union Bank of India – 6.5% per annum
Union Bank currently provides a 6.5% interest rate on a 1-year FD. A ₹1 lakh investment becomes ₹1,06,500 at maturity. The bank’s digital FD booking options have made investing faster and easier.
9. Canara Bank – 6.5% per annum
Canara Bank offers 6.5% interest on 1-year fixed deposits. A ₹1 lakh FD grows to ₹1,06,500 after a year. Known for its financial stability, Canara Bank remains a trusted choice for long-term depositors.
10. State Bank of India (SBI) – 6.45% per annum
The country’s largest bank, SBI, offers 6.45% on 1-year FDs. A ₹1 lakh investment matures to ₹1,06,450 after one year. SBI’s FDs are widely preferred for their reliability and extensive branch network.
Expert Insights
Financial advisors suggest that investors diversify their FDs across different banks to optimize returns while maintaining liquidity. Senior citizens can benefit further, as most banks offer an additional 0.25% to 0.50% interest on deposits.
Despite competition from mutual funds and digital savings products, fixed deposits remain a cornerstone of conservative investment portfolios, ensuring capital protection and guaranteed returns.
If you’re planning to invest for short-term security or a specific financial goal, choosing one of these top-performing banks for a 1-year FD can help you balance safety, liquidity, and profitability.
