When it comes to money and investing, safety is super important. One good way to keep your money secure is to get a fixed deposit. A 5-year fixed deposit is a really reliable choice.
In India, people really like to be smart with their money. These 5 year FDs can be a reliable source. You can keep your money safe, even from yourself.
In this blog post, we will look into the banks that offer 5-year FDs and learn all about their interest rates and major aspects.
Table of contents
Top 15 Indian Banks for 5-year FD Rates
Here is a list of 15 Indian banks that offer the top 5-year FD rate:-
| Bank Name | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
| HDFC Bank | 7.00% | 7.50% |
| Axis Bank | 7.00% | 7.75% |
| ICICI Bank | 6.90% | 7.50% |
| SBM Bank | 7.75% | 8.25% |
| Yes Bank | 7.25% | 8.00% |
| Canara Bank | 6.70% | 7.20% |
| IndusInd Bank | 7.25% | 7.75% |
| Indian Overseas Bank | 6.50% | 7.25% |
| Federal Bank | 6.60% | 7.25% |
| State Bank of India | 6.50% | 7.50% |
| Indian Bank | 6.25% | 6.75% |
| Bank of Baroda | 6.50% | 7.50% |
| Kotak Mahindra Bank | 6.20% | 6.70% |
| Central Bank of India | 5.50% | 6.14% |
| Bandhan Bank | 5.85% | 6.60% |
5-year FD Rates by NBFC in India
Below are the top 5-year FD interest rates of NBFCs:-
| Bank Name | General Citizen | Senior Citizen |
| LIC Housing Finance | 7.25 % (up to a cumulative deposit of Rs. 20 crore) | Up to a deposit of Rs. 2 crore, 7.75% |
| PNB Housing Finance | 7.40% (overall) for general citizens | 7.65% (total cumulative up to INR 1 Crore) for senior citizen |
| Shriram City Union Finance | 8.18% for general citizen | 8.68% for senior citizen |
Key highlights on 5-year FD rates
The key aspects are mentioned below:-
- The interest rates given by HDFC Bank, Axis Bank, and Suryoday Small Finance Bank are the best FD rates for 5-year deposits, ranging from above 7.00% p.a. to 7.50% for average citizens.
- Interest rates for term deposits with a maturity of five years range from 7.00% to 8.50% each year.
- The interest rate paid for older persons ranges from 7.75% p.a. to 8.50% p.a.
State Bank of India:
- All standard term deposit holders get interest from SBI at a rate of 6.50% per year for a 5-year investment.
- For senior individuals, the interest rate is 7.50% per year for this duration.
Equitas Small Finance Bank:
- On 5-year fixed-rate deposits, Equitas Small Finance Bank provides an interest rate of 7.25% p.a.
- For the same term, a senior citizen interest rate of 7.45% p.a. is available.
Axis Bank:
- One of the well-known and reputable banks in India is Axis Bank, which provides an interest rate of 7.00% p.a. for 5-year FDs that are opened.
- For older folks, a 5-year investment term yields an annual return rate of 7.75%
Yes Bank:
- Yes Bank is offering a 7.00% annual interest rate on fixed deposits for a term of 5 years to the general population.
- Seniors will be compensated by YES Bank at a rate of 7.75% annually.
- Investors have a choice between the standard fixed deposits and the five-year tax-free FD. For both FDs, the interest rate is the same.
- Interest will be paid either monthly or quarterly.
HDFC Bank:
- The rate of return on fixed deposits made with HDFC Bank for a term of five years is 7.00% p.a.
- The bank offers older people an interest rate of 7.25% per annum.
5-year FD rates of Small Finance Banks
Below are the top 5-year FD interest rates of small finance banks in India:-
| Bank Name | For General Citizen | For Senior Citizen |
| Suryoday Small Finance Bank | 9.10% | 9.60% |
| Unity Small Finance Bank | 8.25% | 8.75% |
| Utkarsh Small Finance Bank | 7.50% | 8.10% |
| Jana Small Finance Bank | 6.00% | 6.50% |
| Ujjivan Small Finance Bank | 7.20% | 7.70% |
| Au Small Finance Bank | 7.00% | 7.50% |
| Capital Small Finance Bank | 7.10% | 7.75% |
| North East Small Finance Bank | 6.50% | 7.25% |
| Equitas Small Finance Bank | 7.25% | 7.45% |
| Fincare Small Finance Bank | 8.00% | 8.60% |
| Shivalik Small Finance Bank | 7.00% | 7.50% |
| ESAF Small Finance Bank | 6.25% | 6.75% |
Features & Advantages of 5-year FD Rates
The features of a 5-year fixed deposit are mentioned below:-
- Investment terms for FDs range from seven days to ten years. From bank to bank, it varies.
- The investment’s return is compounded on a regular basis; it might be quarterly, yearly, or monthly.
- Seniors receive returns that are 0.5% greater than those given to other investors.
- In most cases, fines are allowed for premature and partial withdrawals.
- One may reinvest the maturity money when the FD matures.
- We must examine the benefits and drawbacks of fixed deposit accounts in order to decide whether investing in one is the best course of action.
Advantages of Fixed Deposits:
No Taxes Apply
According to Section 80C of the Income Tax Act, the first cash sum that the depositor places in the FD is not subject to taxes. FDs are a popular tax-saving alternative for both salaried people and workers, as well as business people. The clause grants an exemption for an FD deposit of up to Rs 1.5 lakh.
Assurance of Returns
FDs pay higher interest than savings accounts do. The rate fluctuates from 7% to 8%. An FD’s interest gains fluctuate with tenure as well; thus, a long-term FD generates better interest gains. The online fixed deposit interest rate comparison charts will show you which bank is providing the best rewards.
Security
Investments in FDs are completely safe. Interest rates are unaffected by market fluctuations, unlike in the case of mutual funds and other market-related financial instruments. An FD scheme’s interest rate likewise stays constant for a certain amount of time, up to its maturity.
Available for NRI
NRIs can create an account for fixed deposits, or FDs, and deposit INR or any other foreign money to invest in them. For NRIs, Indian banks provide specialised FD programmes, some of which are tax-free. For instance, the Indian government does not levy taxes on NRE (NonResident external) accounts created by NRIs. These accounts have advantages like:-
- An FD in rupees for the foreign income
- Taxes are not withheld from any interest that is generated on the account.
- The interest earned at the FD’s maturity is entirely remittable.
- NRIs may also borrow money using their NRE FD accounts.
Loans Against Fixed Deposits
A fixed deposit (FD) is a solid asset to have on hand in case of a monetary emergency. It’s fairly simple to obtain a loan with a set deposit. Depending on the bank, you can borrow up to 95% of the fixed deposit’s value. It is therefore a reliable investment.
FAQ’s on 5-Year FD in India:-
Q1. Which bank is best for FD for 5 years?
Ans: Most of the Indian banks offer almost the same interest rate for 5 year FD. So it’s totally up-to-you which bank you choose.
Q2. Is 5-year FD tax free for 5 years?
Ans: No, a 5-year fixed deposit is not tax free in India.
Q3. Does fixed deposit double in 5 years?
Ans: No, it doesn’t get doubled. But you can expect a good amount with a higher interest rate.
Q4. Can we withdraw money from a 5-year FD?
Ans: No, you cannot withdraw money from your five year fixed deposit.
Q5. Is the nomination facility available for 5-year fixed deposits in India?
Ans: Yes, Most of the banks offer nomination facilities for 5-year fixed deposits in India.
