Looking for a safe investment with stable returns? Short-term Fixed Deposits (FDs) remain a top choice in 2025. Here’s what you need to know to make the most of them.
1️⃣ Top Interest Rates for 1-Year FDs
· Several banks are offering interest rates up to 7.4% for a 1-year FD.
· Rates are generally higher for senior citizens, often exceeding 7.4%.
· Short-term FDs are ideal for those seeking quick returns without market risks.
2️⃣ Best Banks to Consider
· Public sector banks, private banks, and small finance banks all offer competitive FD rates.
· Investors should compare rates, TDS rules, and compounding frequency before investing.
3️⃣ TDS (Tax Deducted at Source) Rules
· Interest earned on FDs is taxable under the Income Tax Act.
· TDS of 10% applies if the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
· Form 15G/15H can be submitted to avoid TDS if your total income is below taxable limits.
4️⃣ Benefits of 1-Year FDs
· Safe and stable investment, ideal for risk-averse investors
· Short-term liquidity, with easy renewal options
· Predictable interest income, useful for planning finances
5️⃣ Tips Before Investing
· Check interest payout frequency (monthly, quarterly, annually, or on maturity).
· Compare rates across banks to maximize returns.
· Keep in mind premature withdrawal penalties.
✅ Takeaway
A 1-year FD offering up to 7.4% interest is a low-risk way to grow your savings while maintaining liquidity. Always consider TDS implications and choose the bank that suits your financial goals.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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