Latest FD Rates: Top banks pay these returns on 1-year term deposits now; compare rates with examples

There's a reason why fixed deposits (FDs) continue to be the preferred option for many, many investors across ages. It's the steady, predictable growth that this financial instrument offers. This is the sole reason why more conservative investors prefer FDs to equities and other riskier asset classes. When your money is in a fixed deposit, you know how much and how soon it will grow.

In this article, we’ll take a simple example to understand how some of the country's top banks -- like State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB), HDFC Bank, and ICICI Bank offer returns on fixed deposits. Let’s assume you invest Rs 5,00,000 in a one-year FD. Here’s how much interest both general customers and senior citizens can earn:

State Bank of India (SBI)

Add Zee Business as a Preferred Source

General Public: SBI offers an interest rate of 6.25 per cent for a one-year FD. A deposit of Rs 5,00,000 will yield a maturity value of Rs 5,31,250.
Senior Citizens: The interest rate for senior citizens is 6.75 per cent, giving a maturity value of Rs 5,33,750.

That means a general depositor earns Rs 31,250 in interest, while a senior citizen earns Rs 33,750.

Bank of Baroda (BoB)

General Public: BoB offers a 6.5 per cent interest rate for one year. On a Rs 5,00,000 deposit, the maturity amount will be Rs 5,32,500.
Senior Citizens: The interest rate is 7 per cent for senior citizens, giving a maturity value of Rs 5,35,000.

So, the general public earns Rs 32,500, while senior citizens earn Rs 35,000.

Punjab National Bank (PNB)

General Public: PNB offers a 6.25 per cent annual interest rate. A Rs 5,00,000 deposit gives a maturity value of Rs 5,31,250, meaning a gain of Rs 31,250.
Senior Citizens: With a 6.75 per cent interest rate, senior citizens get a maturity value of Rs 5,33,750.

HDFC Bank

General Public: HDFC Bank offers a 6.25 per cent interest rate for a one-year FD. On a Rs 5,00,000 deposit, the maturity value is Rs 5,31,250.
Senior Citizens: With a 6.75 per cent rate, the maturity value rises to Rs 5,33,750, giving a profit of Rs 33,750.

ICICI Bank

General Public: ICICI Bank offers a 6.25 per cent annual interest rate. A Rs 5,00,000 deposit grows to Rs 5,31,250 at maturity.
Senior Citizens: The rate for senior citizens is 6.75 per cent, resulting in a maturity amount of Rs 5,33,750.