A sort of investment scheme that banks and non-banking financial organisations offer is a fixed deposit, or FD for short (NBFCs). With FDs, you make investments for a predetermined amount of time and earn a set interest rate. Additionally, you will receive set returns irrespective of how rates of interest change or how the economy is doing at the time of the investment. After reading this article, you will be able to pick out the best FD interest rates for a 5-year term. In addition, you will get some suggestions for the best 5-year fixed deposit tax-free and Flexi fixed deposit interest rates.
Fixed Deposit Types
Here are some of the types of Fixed Deposits that exist:
- Normal Fixed Deposits
- Tax-Saving Fixed Deposits
- Cumulative/Non-Cumulative Fixed Deposits
- Flexi Fixed Deposits
- Senior Citizen Fixed Deposits
- NRI Fixed Deposits
A Fixed Deposit Account’s Features
Here are some of the perks of placing a fixed deposit:
- This is safer than other forms of investing.
- It allows you to earn interest over a predetermined period.
- You may get up to 10 years of flexible terms.
- There is no maximum deposit limit.
- Senior citizen rates are higher.
Best 5-Year Fixed Deposits in India
Investors can opt from a wide range of fixed deposits (FD) that offer a high-interest rate for 5 years. Generally, most 5-year fixed deposit schemes come as tax-saver plans but one can also opt for other types of FDs in this tenure range
Best Interest Rates for 5-Year Fixed Deposits Below Rs.2 Crore in India
|Bank/Company||Regular Interest Rates (per annum)||Senior Citizen Interest Rates (per annum)|
|RBL Bank FD||7.25%||7.75%|
|SBI Bank FD||5.50%||6.30%|
|Equitas Small Finance Bank||6.00%||6.50%|
|Axis Bank FD||5.75%||6.50%|
|YES Bank FD||6.50%||7.25%|
|HDFC Bank FD||5.70%||6.20%|
|IDFC First Bank FD||6.00%||6.50%|
|IndusInd Bank FD||6.50%||7.00%|
|Punjab and Sind Bank FD||5.60%||6.10%|
*Deposit rates are flexible & subject to sudden bank updates.
Key highlights on 5-year FD rates
● Some of the banks offer the best ROI, in which the return on investment is around 6.50%, and offer the best FD rate for 5-year deposits.
● Interest rates of up to 8.00% p.a. are available from various Small Finance Banks.
● Interest rates for term deposits with a maturity of five years range from 7.00% to 9.50% per year.
● The interest rate for older persons ranges from 7.50% p.a. to 10.00% p.a.
Top 10 Tax Saver FD Interest Rates (5-year fixed deposit tax-free)
With a maximum deposit of Rs. 1.5 lakh, tax-saver FDs are eligible for a maximum tax savings of Rs. 1.5 lakh mentioned under Section 80C of the IT (Income Tax) Act. There is a five-year lock-in period. Those that are older are given a higher interest rate. The below FDs are some of the best, and high return 5-year fixed deposit tax-free
|Name of the Tax Saving FD||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|RBL Bank Tax Saving FD||6.55%||7.05%|
|HDFC Bank Tax Saving FD||6.10%||6.60%|
|Canara Bank Tax Saving FD||5.75%||6.25%|
|Axis Bank Tax Saving FD||5.75%||6.50%|
|Bank of Baroda Tax Saving FD||5.50%||6.50%|
|IDFC First Bank Tax Saving FD||6.50%||Contact the bank|
|Union Bank of India Tax Saving FD||5.75%||Contact the bank|
|PNB Tax Saving FD||5.65% onwards||6.15% onwards|
|Punjab and Sind Bank Tax Saving FD||5.75%||6.25%|
|IDBI Bank Tax Saving FD||5.80% onwards||6.55%|
*Deposit rates are flexible and subject to sudden bank updates.
Banks offering Flexi fixed deposit interest rates
Indian banks provide several Flexi fixed deposit interest rate programmes to customers, some of which are given below.
- RBL Bank
- Indian Union Bank
- Almighty Bank
- Baroda Bank
- Bank of India State
- ICICI Bank’s Flexi Deposit Program
One of the safest financial alternatives is to invest in fixed deposits. Banks make FDs a viable choice by paying interest on them. An account for a fixed deposit can be created for a minimum of seven days. Each bank has a different minimum amount. You may choose the FD account and invest in it based on your rate of interest.