Many people choose fixed deposits (FDs) over other investments options because they want stable returns from a low-risk instrument. Some people invest in FDs to park large amounts that they don’t want to invest in high-risk equities or similar investment options. FD interest rates range between banks, and even a slight variation in rates might change the maturity amount you get. The FD tenure can be from 7 days to 10 years.
Investors can invest large amounts in FDs as most banks have no maximum investment limit for fixed deposits.
If you are planning to invest Rs 5 lakh in a one-year FD scheme, here's a look at the banks currently offering the highest FD interest rates. Also know the approximately maturity amounts that you can get in these FDs on a Rs 5 lakh investment.
Highest 1-year FD interest rates at PSU banks
Bank of India and Indian Overseas Bank are offering the highest interest rate at 6.5% each. Bank of Maharashtra is offering a 6.4% rate, while Bank of Baroda, Canara Bank, Punjab National Bank (PNB) and State Bank of India (SBI) have a 6.25% interest rate each in their 1-year FDs.
Highest 1-year FD interest rates (PSU banks) and maturity on Rs 5 lakh investment
| Bank | Interest Rate (%) | Maturity amount (Rs) |
| Bank of India, Indian Overseas Bank | 6.5 | 533,301 |
| Bank of Maharashtra | 6.4 | 532,776 |
| Bank of Baroda, Canara Bank, PNB, SBI | 6.25 | 531,990 |
| Union Bank of India | 6.2 | 531,728 |
Highest 1-year FD interest rates at private banks
SBM Bank India offers the highest 1-year FD interest rate at a 7.1%, while the interest rate at Bandhan Bank and RBL Bank is 7% each. DCB Bank offers a 6.9% rate to its investors, while Jammu & Kashmir Bank and Tamilnad Mercantile Bank offer a 6.8% each. IndusInd Bank has a 1-year FD interest rate of 6.75%.
Highest 1-year FD interest rates (private banks) and maturity on Rs 5 lakh investment
| Bank | Interest Rate (%) | Maturity on Rs 5 lakh investment (Rs) |
| SBM Bank India | 7.1 | 536,456 |
| Bandhan Bank, RBL | 7 | 535,930 |
| DCB Bank | 6.9 | 535,403 |
| Jammu & Kashmir Bank, Tamilnad Mercantile Bank | 6.8 | 534,877 |
| IndusInd Bank | 6.75 | 534,614 |
Highest 1-year FD interest rates at small finance banks (SFBs)
Suryoday Small Finance Bank and Ujjivan Small Finance Banks are offering the highest 1-year FD interest rate at 7.25% each among all SFBs. Equitas Small Finance Bank’s rate is 7.10%, while Jana Small Finance Bank is offering a 7% interest rate to its 1-year FD investors.
Highest 1-year FD interest rates (SFBs) and maturity on Rs 5 lakh investment
| Bank | 1-Year FD Rate (% p.a.) | Maturity on Rs 5 lakh investment (Rs) |
| Suryoday Small Finance Bank | 7.25% | 5,37,248 |
| Ujjivan Small Finance Bank | 7.25% | 5,37,248 |
| Equitas Small Finance Bank | 7.10% | 5,36,456 |
| Jana Small Finance Bank | 7.00% | 5,35,930 |
| AU Small Finance Bank | 6.35% | 5,32,514 |
| (FD interest rate source: Paisabazaar) | ||
