Fixed Deposits: 24 Banks Offering Highest Interest Rates On 6 Month To 1 Year FDs, Check List

A short-term fixed deposit is a financial tool offered by banks and non-bank financial institutions. These FDs provide a variety of advantages while also encouraging customers to deposit money and receive high short-term FD rates. They typically have a maturity period of less than a year and give a unique opportunity for investors to park their cash while earning returns and maintaining liquidity.

Short-Term FDs: Check The Benefits

– Short-term FDs have several advantages, including flexibility and liquidity. Unlike long-term FDs, which lock in cash for several years, short-term FDs allow investors to withdraw funds relatively rapidly. This liquidity feature makes them appropriate for those who may require access to their funds soon for a variety of reasons, including planned expenses, emergencies, or investment opportunities.

– In addition to liquidity, short-term FDs provide a predictable and certain rate of return. These FD’s interest rates are fixed at the moment of investment, giving investors a clear picture of their returns. This predictability is useful for investors looking for consistency in their investment portfolio, particularly during uncertain economic times or unpredictable market situations.

– Short-term fixed deposits also have the advantage of being simple and easy to invest in. Opening a short-term FD account is a simple process that requires little documentation and is frequently available through online banking services. This convenience makes it appealing to both experienced investors and those new to financial investments.

– Tax efficiency is another area where short-term FDs can help, particularly for investors in lower tax bands. Interest on short-term FDs is normally added to the investor’s income and taxed accordingly. To reduce their tax liability, investors can look into tax-saving FDs or take advantage of their annual tax exemptions and deductions.

Below are 24 banks that offer the highest interest rates on 6 months to 1-year FDs:

1. Bank of Baroda: 5.60% to 7.10%
2. Bank of India: 5.5% to 5.75%
3. Bank of Maharashtra: 5.10% to 6%
4. Canara Bank: 6.15% to 6.25%
5. Central Bank of India: 6.0% to 6.25%
6. Indian Bank: 3.85% to 7.05%
7. Indian Overseas Bank: 5.75%
8. Punjab and Sind Bank: 5.25% to 7.10%
9. Punjab National Bank: 6% to 7.05%
10. State Bank of India: 5.75% to 6%
11. UCO Bank: 5% to 5.50%
12. Union Bank of India: 4.90% to 5.75%
13. Axis Bank Limited: 5.75% to 6%
14. Bandhan Bank Limited: 4.50%
15. City Union Bank Limited: 6% to 6.5%
16. Federal Bank Limited: 5% to 6%
17. HDFC Bank Limited: 4.5% to 6%
18. ICICI Bank Limited: 4.75% to 6%
19. IDBI Bank Limited: 5.25% to 7.05%
20. Induslnd Bank Limited: 5% to 6.50%
21. IDFC First Bank Limited: 4.5% to 5.75%
22. Karnataka Bank Limited: 6.0% to 6.5%
23. Kotak Mahindra Bank Limited: 6% to 7%
24. Yes Bank Limited: 5% to 6.35%.