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In this era of inflation, keeping one’s hard-earned money safe and getting good returns on it is the first and foremost priority of every sensible investor, for which Fixed Deposit i.e. FD even today remains the most reliable and popular means of investment among crores of middle class families and employed people of the country. If you also want to earn a sure and handsome profit on your savings by staying away from the ups and downs and risks of the stock market, then this traditional option of safe investment can prove to be a boon for you. At present, to attract investors, many small and big banks of the country are offering bumper interest rates on fixed deposit schemes with a period of only one year, which have the power to make investors rich in a short time. If you are thinking of investing a small amount of just Rs 10,000 in the right place this festive season, then it is very important for you to have complete information about these top 5 bank FD options available in the market so that you can get the maximum profit on every penny of your hard work.
What is the magic of fixed deposits and why one year short-term FD remains the first choice of investors?
Fixed Deposit i.e. FD is such a safe means of investment where market risks do not affect your principal amount and banks fully promise to give you a pre-determined interest rate. For some time now, there has been tremendous competition regarding interest rates in the banking sector of the country, which is directly benefiting the common investors because banks are now offering attractive interest rates on short-term investments as well as long-term ones. Especially FD with a period of one year is becoming very popular among investors because in this your money is not locked for a very long time and within just twelve months you can either reinvest it or use it for any other need after getting huge profits on your invested amount. Financial experts have always believed that one year FD is considered to be the best and practical financial strategy to keep your portfolio diversified and maintain liquidity for emergency needs.
List of top 5 banks which are offering the best and strongest interest rates on one year FD.
At present, to attract customers in the banking market of the country, many renowned and reputed banks are offering the highest interest rates on their one year fixed deposit schemes. According to this financial analysis and current market rates, select banks like Shivalik Small Finance Bank, Utkarsh Small Finance Bank, Suryoday Small Finance Bank, Jana Small Finance Bank and Equitas Small Finance Bank are providing the highest annual interest to investors on one year FDs i.e. around 8.25 percent to 8.50 percent. On the other hand, the country’s big and public sector banks like State Bank of India, HDFC Bank, ICICI Bank and Punjab National Bank are also giving attractive returns ranging from 6.8 percent to 7.3 percent to their general customers and senior citizens on this special period of one year. Comparing the interest rates of all these banks clearly shows that if you choose your bank wisely, you can easily earn extra profit even on your normal savings.
Know how much huge profit you will get within a year by investing only ₹ 10,000.
Now the biggest question that arises is that if you deposit a small amount of just Rs 10,000 from your hard-earned money in these selected banks for a year, then how much money will you have in your hand after the completion of twelve months. Suppose you have made your FD in a bank which is giving you interest at the rate of 8.5 percent per annum for a period of one year, then according to the mathematics of compounding and simple interest, you will get a net interest profit of more than Rs 850 in just one year. This means that your principal amount of Rs 10,000 will grow directly to Rs 10,850 or more without any risk, which is many times higher than the normal 3 percent interest offered in any bank savings account. If this calculation is seen on a larger scale and you invest Rs 1 lakh or more, then the returns you get will bring a big smile on your face and that is why today every sensible investor is engaged in increasing his small savings rapidly through FD.