A ₹1 lakh one-year fixed deposit could mature at up to ₹1,07,450 with some small finance banks, highlighting a sizeable gap with leading private and public sector lenders.
For savers looking at a one-year fixed deposit, the gap between banks can make a meaningful difference. According to a report by ABP Live, several small finance banks are currently offering the highest rates, with returns on a ₹1 lakh deposit reaching as much as ₹1,07,450 at some lenders, compared with lower maturity values at larger private and state-run banks.
ABP Live said Suryaodaya Small Finance Bank and Ujjivan Small Finance Bank are among the most generous on a one-year FD, each offering 7.25%, while Equitas Small Finance Bank is at 7.10% and Jana Small Finance Bank at 7%. The same report shows that among private banks, SBM Bank India is offering 7.10%, while Bandhan Bank stands at 7%, and DCB Bank and RBL Bank are at 6.9%. Larger private lenders such as HDFC Bank, ICICI Bank and Axis Bank are quoted at 6.25%, producing a maturity value of ₹1,06,398 on a ₹1 lakh deposit.
The spread is also visible among public sector lenders. ABP Live listed Bank of India and Indian Overseas Bank at 6.5%, with a maturity amount of ₹1,06,660 on a ₹1 lakh deposit. Bank of Maharashtra is shown at 6.4%, while State Bank of India, Punjab National Bank, Bank of Baroda and Canara Bank are all at 6.25%, putting them on par with the big private banks in the same tenor.
Other recent comparisons suggest that one-year FD pricing can shift quickly and vary by institution. Moneycontrol reported that IndusInd Bank was offering 7% on one-year deposits, while Axis Bank, HDFC Bank and Bank of Baroda were at 6.6% and ICICI Bank at 6.4%. Livemint also noted that one-year fixed deposit rates are changing across major banks, including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, Federal Bank, SBI and Union Bank of India, underscoring the need for depositors to compare rates before locking in money.
The wider lesson is that a fixed deposit should not be chosen on headline yield alone. Interest earned on an FD can affect a saver’s tax bill, and premature withdrawal rules can reduce the effective return if money is needed early. For that reason, the best rate is not always the best fit; maturity value, tax impact and liquidity matter as much as the advertised interest.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
