SBI, ICICI, HDFC: Who Offers Best 1-year FD Return On ₹10 Lakh?

Fixed deposits continue to be a go-to choice for conservative investors across India, thanks to their guaranteed returns and immunity from market fluctuations. With interest rates locked at the time of deposit, FDs offer a stable source of short-term earnings, particularly attractive for those seeking financial predictability. According to experts, comparing FD rates across leading banks can help investors maximise maturity benefits. Here's a comprehensive look at 1-year FD returns from major Indian banks based on a ₹10 lakh deposit.

SBI Offers Moderate Stability for Risk-Averse Depositors

The State Bank of India (SBI), one of the most trusted public sector lenders, currently provides a 6.25% interest rate on a 1-year fixed deposit for general citizens. With this rate, a deposit of ₹10,00,000 will grow to ₹10,63,980 over a 12-month period. While not the highest in the market, SBI’s legacy, security, and reach make it a preferred option for many.

Bank of Baroda and Canara Bank Lead With Higher Yields

Public sector lenders Bank of Baroda (BoB) and Canara Bank are offering slightly more attractive rates than SBI. Both banks currently provide a 6.50% interest rate on a 1-year FD. This means a deposit of ₹10,00,000 in either of these banks will mature at ₹10,66,602. According to financial experts, these banks offer a balanced combination of government backing and relatively higher returns.

HDFC and ICICI Match SBI in FD Returns

Among private sector banks, HDFC Bank and ICICI Bank are offering similar FD rates to SBI for the 1-year tenure. Both banks provide a 6.25% annual interest rate. A ₹10,00,000 deposit in either institution results in a maturity value of ₹10,63,980 after one year.

While private banks may offer better digital services or customer experience, experts suggest that in terms of pure returns, they remain at par with SBI for short-term FDs at this moment.

FD Rate Overview: Maturity on ₹10 Lakh Deposit for 1 Year

Here’s how a ₹10 lakh fixed deposit would grow over 12 months at current bank rates:

• SBI, HDFC, ICICI: 6.25% interest, maturity amount: ₹10,63,980
  
• Bank of Baroda, Canara Bank: 6.50% interest, maturity amount: ₹10,66,602
  

While the difference may seem small, over larger deposits or cumulative investment cycles, the impact can be more significant. Experts recommend selecting banks based not only on rate, but also on reliability, withdrawal flexibility, and digital ease.

Should You Invest in a 1-Year FD in 2025?

Given the current interest rate cycle, many investors are choosing short-term deposits such as 1-year FDs to remain flexible. With speculation about future rate changes, locking funds for a shorter term allows reinvestment at revised rates later.

According to financial planners, 1-year FDs are ideal for risk-averse individuals who need assured returns, such as retirees, or those planning for upcoming expenses like tuition fees or travel. Additionally, laddering FDs of varying tenures can help balance liquidity and yield.

Disclaimer: This article is for informational purposes only. Readers are advised to consult financial advisors or banking professionals before making any investment decisions. Interest rates mentioned are based on current data and may vary based on bank policies or individual eligibility.