Fixed deposits are one of the most popular investment options since they offer an assured rate of return along with capital safety. It is an option for risk-averse investors wanting guaranteed returns after a defined tenure.
The deposit rates offered by government banks are often lower in comparison to private and small finance banks. However, the public has faith in the stability of government banks.
If you are planning to open a deposit account with a government bank, here is the list of 10 government banks paying highest interest rates on their one-year fixed deposits.
|BANKS||INTEREST RATE (PA) (FD Tenure 1-Year )|
|Punjab & Sind Bank||5.55%|
|Bank of India||5.35%|
|Indian Overseas Bank||5.30%|
|Punjab National Bank||5.25%|
|Bank of Baroda||5.10%|
|State Bank of India||5.10%|
Data as on respective banks’ website on 12 Aug 2020. Interest rate on one-year term deposits for all listed (BSE) public sector banks considered for data compilation. Banks whose websites don’t mention the data are not considered. Compiled by BankBazaar.com, India’s leading online marketplace for loans and credit cards.