Best FD Rates: If you are thinking of investing money in FDs for 6 months to one year, then you can decide to invest by looking at the FD rates of more than 30 banks here.
Best FD Rates: Fixed deposits (FDs) are a popular investment option in India, but investors often ask whether short-term FDs can give great returns, or are only long-term investments profitable? Certainly, long-term FDs offer more stability and benefits, but short-term FDs (from 7 days to 1 year) can be best for certain financial needs. So when and why to choose short-term FDs? Know about the important aspects that will help you take the right decision.”
When to invest money in short-term FDs?
If you have extra cash lying around
If you have extra cash lying around that you can use soon, then it can prove to be better to block it in short-term FDs. Along with keeping your savings safe, it also gives better returns than a savings account.
Emergency fund
Keeping a part of the emergency fund in short-term FDs not only keeps your money safe, but you also get interest on it. Apart from this, you can also use it when needed.
Money being collected for short-term goals
If you are saving money for a short-term goal like your vacation, wedding or purchase of a new gadget, then FDs up to 1 year give you assured returns, so that your dream can be fulfilled without any worry.
Waiting for better investment
Investors waiting for better market conditions can temporarily invest in short-term FDs instead of letting the cash lie idle. You can invest money in FDs.
Uncertain interest rate fluctuations
If interest rates are going to rise, locking money in a long-term FD may not be as beneficial. Instead, short-term FDs give you the opportunity to reinvest later at better rates.
Keep these things in mind while investing in short-term FDs
Interest rate
Compare FD rates offered by banks and non-banking financial companies. Private banks and small finance banks can give higher returns.
Premature withdrawal rules
Premature withdrawal in short-term FDs may attract a penalty.
Tax rules
The interest you earn is taxable under ‘income from other sources’ and if it exceeds the return limit, you may also have to face TDS.
Withdrawal conditions
Make sure that your funds are not in a place where you cannot access them immediately when needed.
These banks are giving better returns on FDs from 6 months to 1 year
Short-term FDs are a safe way to easily manage your liquidity and earn modest returns. However, it is important that you know how much returns you will get and what will be your tax liability in the short term? FD can be a good option to meet short-term goals.
If you want to get better returns by investing money in FDs from 6 months to 1 year, then you can check the FD rate list of more than 30 banks below.
| Name of the Bank | Interest rate on FD from 6 months to 1 year |
| State Bank Of India | 6.25%-6.50% |
| UCO Bank | 5%-7.30% |
| Union Bank Of India | 5%-6.35% |
| Axis Bank Ltd. | 5.75%-6% |
| Bandhan Bank Ltd. | 4.50% |
| Catholic Syrian Bank Ltd. | 4.25%-7.25% |
| City Union Bank Ltd. | 6%-7.5% |
| DCB Bank Ltd. | 6.2%-7.25% |
| Dhanlaxmi Bank Ltd. | 6%-7.25% |
| Federal Bank Ltd. | 5.50%-6.50% |
| HDFC Bank Ltd | 4.5%-6% |
| ICICI Bank Ltd. | 4.75%- 6% |
| IDBI Bank Limited | 5.50%-7.05% |
| IndusInd Bank Ltd | 5%- 6.50% |
| IDFC First Bank Ltd. | 4.5%-5.75% |
| Jammu & Kashmir Bank Ltd. | 5.5%- 7% |
| Karnataka Bank Ltd | 6.25% |
| Karur Vysya Bank Ltd. | 6%-7.4% |
| Kotak Mahindra Bank Ltd | 6%-7% |
| Nainital Bank Ltd. | 4.95% – 7% |
| RBL Bank Ltd | 4.75%- 6.05% |
| South Indian Bank Ltd. | 4.5%-6.55% |
| Tamilnad Mercantile Bank Ltd. | 6.50%-7.60% |
| Yes Bank Ltd. | 5%-6.50% |
| Bank Of Baroda | 5.60%-6.50% |
| Bank Of India | 6.00% |
| Maharashtra Bank | 5.25%-6.90% |
| Canara Bank | 6.15%-6.25% |
| Central Bank Of India | 6.25% |
| Indian Bank | 3.85%-7.05% |
| Indian Overseas Bank | 5.75% |
| Punjab & Sind Bank | 5.25%-7.20% |
| Punjab National Bank | 6.25%-7.05% |
(Note – This list of bank FD rates for FDs from 6 months to 1 year has been prepared by BankBazaar.com, which is for your information. The update related to FD rates from the official website of the respective banks is till 27 February. Investors are advised to confirm the interest rate from the bank branch or the official website of the bank before investing money in the FD of any bank included in the list. Apart from this, also understand the terms and conditions related to FD.)
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