Which banks offer the highest interest on one-year FDs? HDFC, SBI, ICICI rates

Fixed depositsare a great financial instrument for short-term savings. These provide fixed returns and also keep your invested money safe. Their utility increases during market volatility, when other modes of investment become riskier. However, before you open your fixed depositaccounts, you must compare the interest rates leading banks offer. This is because most banks offer different rates for their services. A marginal difference in interest rates can affect your returns. For instance, 0.5 per cent on a fixed deposit of Rs 10 lakh can set you back by Rs 5000 in one year.

Here's a list of banks offering the highest fixed deposit rates for FDs with a one-year term.

HDFC Bank

HDFC Bank offers an interest rate of 6.25 per cent on fixed deposits with a one-year term. Senior citizens get more returns. Their FD attracts a 6.75 per cent per annum return for the FD of one-year term.

ICICI Bank

ICICI Bank is also a major private player in the Indian banking space. It offers a 6.25 per cent interest rate for an FD of one year. Senior citizens get 6.75 per cent interest for a one-year FD.

Union Bank of India

Union Bank of India offers 6.40 per cent interest for fixed deposits for a one-year term. Senior citizens get FD interests for a one-year term at 6.90 per cent.

State Bank of India

State Bank of India (SBI) is the largest lender and bank in India. It offers a handsome 6.25 per cent interest on fixed depositsfor a year. Senior citizens get an interest rate of 6.75 per cent for a one-year fixed deposit.

Kotak Mahindra Bank

Kotak Mahindra Bank's FD rates are similar to those of the State Bank of India. It offers 6.25 per cent for regular citizens for a one-year FD. For senior citizens, the rates are 6.75 per cent.

Federal Bank

Federal Bank offers the highest returns on FDs. This private bank offers 6.40 per cent and 6.90 per cent interest on one-year fixed deposits to regular and senior citizens.