Bank FD Highest Interest: 5 banks giving the highest interest on 1 year FD, know FD interest rates & benefits

Bank FD Highest Interest: Despite investments like equity, mutual funds giving tremendous returns, the popularity of fixed deposits (FD) has not decreased. A large number of people deposit money in it and earn profit from interest throughout the year. 

Bank FD Highest Interest: Recently, Punjab National Bank (PNB) and Bank of Baroda (BoB) have increased the interest rates of FD. In such a situation, if you are thinking of getting FD for a year, then you should know which banks have higher interest, apart from this, you should also know the benefits of getting FD…

5 banks giving highest interest on 1 year FD

1. Bank of Baroda (BoB)- 6.85%

2. SBI- 6.80%

3. Punjab National Bank (PNB)- 6.95%

4. ICICI Bank – 6.70%

5. HDFC Bank – 6.60%

Also Read- FD interest rates: These 6 banks are giving the highest returns on fixed deposits

Advantages of Fixed Deposit:

• FD offers fixed interest, which makes your money safe.
• FD is a deposit in the bank, which is guaranteed by the government.
• FD can be broken at any time, but some fees may have to be paid for this.
• Tax benefits are available on FDs of 5 years or more.
• Regular interest is received on FD, which increases the income.
• Investing in FD reduces the risk of your money.
• Investing in fixed deposits is easy.
• FD can be made for different time periods, like- 1 year, 2 years or 5 years, 10 years
• By comparing the interest rates of different banks, you can make FD in the bank with higher interest rate.
• You can invest in FD alone or jointly.
• Fixed deposits have nomination facility, which can benefit family members.
• Loan can be taken against FD, through which money can be easily obtained in case of emergency.

How much loan can I take against FD

There are three types of loans available against fixed deposits. These include demand loan, overdraft and credit card. There is no fixed period on demand loan, it can be repaid whenever you want as per your convenience. Demand loan can be given in one go or in many installments. In opendraft loan, banks issue a credit limit, which is usually 70% or 80% of the value of FD. Money can be withdrawn and repaid as many times as you want from opendraft accounts as per your needs. You can take loan from credit card within a pre-determined limit. It has to be repaid within time, otherwise banks can charge higher interest.

What is the interest rate on loan against FD?

The interest on the loan given on fixed deposit is less than that on personal loan, credit card or other loans. It is about 1 or 2 percent more than the interest received on FD. Not many documents are required for this. It is easily available because the bank already has your documents.

What to do while making FD

• While making an FD, definitely check its tenure, because if you withdraw the money before maturity, you will have to pay a penalty.
• If you are going to make a large amount of FD in one bank, then make small FDs in many banks. This way you can break the FD when you need money.
• You can save tax by getting a 5-year FD. In this, you can claim a total tax deduction of up to Rs 1.5 lakh under section 80C of the Income Tax Act.

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FD interest rates: These 6 banks are giving the highest returns on fixed deposits

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