If you’re looking for a safe and steady way to grow your money, fixed deposits (FDs) remain a top choice. They offer guaranteed returns, low risk, and flexible tenures. Among all the options, the one-year FD is especially popular as it gives decent returns without locking your money away for too long.
NOT ALL FDS ARE EQUAL
But here’s something many people overlook: not all banks offer the same interest rate. Choosing the right bank can make a noticeable difference in your final amount. According to BankBazaar’s July 25, 2025 data, here are some of the most attractive one-year FD rates for non-senior citizens.
PRIVATE BANKS OFFERING HIGH RETURNS
Among private banks, IndusInd Bank offers an attractive 7% rate. If you invest Rs 1 lakh with them for a year, it would grow to Rs 1.07 lakh by the time it matures.
Other well-known private banks like Axis Bank, HDFC Bank, and Kotak Mahindra Bank are offering 6.60 % for a similar term. This means your Rs 1 lakh investment would also grow to around Rs 1.07 lakh.
ICICI Bank, another major private lender, currently offers a slightly lower rate of 6.25 % for a one-year FD. So, a Rs 1 lakh deposit here would fetch you Rs 1.06 lakh at maturity.
WHAT ABOUT PUBLIC SECTOR BANKS?
Looking at public sector banks, Punjab National Bank is offering a one-year FD rate at 6.80 %. This too would result in Rs 1.07 lakh after a year on a Rs 1 lakh deposit. Other major public banks like Bank of Baroda, Canara Bank, and Union Bank of India are giving 6.60 %, similar to their private counterparts.
India’s largest public sector bank, State Bank of India (SBI), currently offers 6.45 % on a one-year FD. That means a Rs 1 lakh deposit would become Rs 1.06 lakh after 12 months.
ARE YOUR DEPOSITS SAFE?
It’s also worth noting that the safety of your money in fixed deposits is backed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a part of the Reserve Bank of India. It guarantees your deposits up to Rs 5 lakh per account holder, per bank.
So, if you’re planning to invest in a fixed deposit for a year, it’s worth comparing the interest rates across banks before making your choice. A small difference in the rate can add up, especially for larger deposits.
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