Do you want to save your money but are unsure which investment tool to use? Well, the option to invest in fixed deposits is always available to investors looking for a safe option. One of the most popular FD investment tenures among depositors is 5 years, which usually comes with a tax-saving feature. It helps you get high returns on your investment and is tax-saving.
Let us dive deeper to know the best FD rates for 5 years offered by different banks.
About FD
FDs or fixed deposits are a secure investment choice in which you deposit a particular amount of money with the bank or Non-Banking Financial Company (NBFC), for a set duration of time and at an attractive interest rate. This is a safe investment option for cautious investors seeking a steady income stream.
The rate of interest applicable on your FDs is higher than what you get in savings accounts. This is mostly because your money remains fixed for a specific tenure, and you do not have the flexibility to withdraw or deposit money whenever you want.
Financial institutions offer you FDs with flexible tenure of 7 days to 10 years. Individuals wanting to invest money for 5 years mostly opt for tax-saving FD schemes. You can get the best 5-year fixed deposit rates from both small and large finance banks, helping you grow your money significantly.
Some key benefits of investing in FDs are:
- You can take a loan against your fixed deposits.
- Additional interest rate benefits for senior citizens.
- Guaranteed returns on your deposit.
- Simple investment process.
- Grow money for a fixed period to use in different financial requirements.
- Competitive and attractive interest rates are available.
Best FD Interest Rates for 5-Year Tenure – 2024
In this section, we will guide you through the best FD for 5 years with their interest rates for both general and senior citizens.
1. Bank FD Interest Rate for 5-Year
Here is a list of well-known banks in India offering the best FD interest rates for 5 years.
| Bank | General Citizen | Senior Citizen |
|---|---|---|
| State Bank of India | 6.50% p.a. | 7.50% p.a. |
| HDFC Bank | 7.00% p.a. | 7.75% p.a. |
| Axis Bank | 7.00% p.a. | 7.75% p.a. |
| ICICI Bank | 7.00% p.a. | 7.50% p.a. |
| Punjab National Bank | 6.50% p.a. | 7.00% p.a. |
| Bank of Baroda | 6.50% p.a. | 7.15% p.a. |
| Canara Bank | 6.70% p.a. | 7.20% p.a. |
| Central Bank of India | 6.25% p.a. | 6.75% p.a. |
| Indusind Bank | 7.25% p.a. | 8.00% p.a. |
| Union Bank of India | 6.50% p.a. | 7.00% p.a. |
| Bandhan Bank | 5.85% p.a. | 6.60% p.a. |
| Kotak Mahindra Bank Ltd. | 6.20% p.a. | 6.70% p.a. |
| DCB Bank | 7.40% p.a. | 7.90% p.a. |
| IDFC First Bank | 7.00% p.a. | 7.50% p.a. |
| IDBI Bank | 6.255 p.a. | 6.75% p.a. |
2. Small Finance Bank FD Interest Rate
Here is a list of small finance banks offering the best FD rates for 5 years for both general citizens and senior citizens.
| Bank | General Citizen | Senior Citizen |
|---|---|---|
| Ujjivan Small Finance Bank | 7.20% p.a. | 7.70% p.a. |
| Unity Small Finance Bank | 7.65% p.a. | 8.15% p.a. |
| Utkarsh Small Finance Bank | 7.50% p.a. | 8.10% p.a. |
| Suryoday Small Finance Bank | 8.25% p.a. | 8.75% p.a. |
| Shriram Finance Transport Bank | 8.50% p.a. | 9.00% p.a. |
| North East Small Finance Bank | 6.25% p.a. | 7.00% p.a. |
| Jana Small Finance Bank | 7.25% p.a. | 7.75% p.a. |
| AU Small Finance Bank | 7.25% p.a. | 7.75% p.a. |
| Capital Small Finance Bank Limited | 7.10% p.a. | 7.60% p.a. |
| ESAF Small Finance Bank | 6.25% p.a. | 6.75% p.a. |
Conclusion
Overall, FD investment is a secure option for people seeking to get assured returns on their money. Depositing money for 5 years can help you save money for a long tenure as well as save taxes. Always remember to compare the best FD rates for 5 years offered by different large and small banks to plan your finances and returns in a better way.
FAQs
You can calculate your fixed deposit returns, as well as the interest income, by using an online FD calculator. It helps you get and compare results quickly and accurately
DCB Bank, a well-known private sector bank in India, offers the highest rate of interest on 5-year FD. General citizens get 7.40%, and senior citizens get 7.90% as interest on FDs.
Shriram Finance Transport Bank offers a high interest rate on a 5-year FD. General and senior citizens get 8.50% and 9.00%, respectively, as the interest.
Canara Bank is the public sector bank offering the highest interest rate on a 5-year FD. General and senior citizens get 6.70% and 7.20% p.a. Respectively on their deposits.
You can prematurely withdraw your money from your FD account against a specific penalty charge. However, in the case of tax-saving FD, you cannot withdraw your FD before maturity.
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
