Always considered the safest form of investment in India, Fixed Deposits guarantee your return without suffering from market risk. For investors who prefer parking their money for a short duration, one-year FDs are the way to go. Several banks are offering good interest rates for 1-year FD now, so there’s never been a better time to invest.
Top-Banks Offering Returns At High Rates
Given SBI, HDFC, Bank of Baroda, and India Bank, one can select their high-interest rate 1-year FD scheme from any of these banks. These schemes also provide competitive returns on the principal amount and ensure safety of the invested amount. Senior citizens get an added interest over and above that provided, thereby providing greater benefit to them while investing in these FDs.
Advantages: 1 Year FDs
- Guaranteed and predictable returns
- Short tenor keeps in touch with liquidity
- Extra interest for senior citizens
- Suitable for conservative investors looking for steady income
Example of Returns
For example, if a person deposits ₹5,00,000 for 1 year at the prevailing rate of 7.5% interest in the bank, the sum full amount will be paid on maturity. If the person is a senior citizen, he will be paid an extra 0.50% interest which makes the income from these FDs better than savings account interest.
Why Investors Should Consider 1-Year FDs
An investor who wants to earn more than what he gets in a savings account but does not want to lock the amount for a long time will find 1-year FDs suitable for him. Another advantage is that it keeps one flexible, i.e., reinvesting at higher rates once the tenure ends.
How to Invest
Investors can open 1-year FDs through bank branches, online banking portals, or mobile apps. Bank also generally allows for auto-renewal of FDs so that one may continuously invest.
Conclusion
One-year FDs by leading banks guarantee safe and lucrative investment returns. Higher interest rates ensure optimum returns with the safety of principal. Also, if you’re a senior citizen, you get attractive additional interest rates. So, this is a golden opportunity to explore short-term FD schemes and plan your finances smartly.