Fixed Deposit for 5 Years: Earn 1.4 Lacs, Interest Rate of 30+ Banks

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Amongst the various types of investment options available in the flooded Indian market, fixed deposit (FD) is one of them. It’s another name is term deposit. FD is an investment option mostly preferred by low risk individuals who want to safely save their hard earned money and earn return after fixed interval.

You can invest in FD for a minimum 7 days to 5 years or even more depending on the tenure options available at the respective financial institution.

Here’s the list of top most banks in India offering fixed deposit for 5 years. We will assume an individual is planning to invest:

  • Rs. 100000 (1 Lac)
  • Tenure: 60 months (5 years)
  • Compounding Type: Quarterly (Used by most of the banks in India)
Financial Institution
Interest Range Offered
Interest Rate Used for Calculation
Maturity Value after 5 years in INR
Axis Bank
3.5 - 7.75%
7.75%
146784
Punjab & Sind Bank
3.5 - 7.9%
7.90%
147868
Karnataka Bank
3.5 - 8.1%
8.1%
149324
HDFC Bank, IndusInd
Bank
3.5 - 8.0%
8.0%
148594
Oriental Bank of Commerce
4.0 - 7.15%
7.15%
142524
Bank of India
4.0 - 7.5%
7.50%
144994
ICICI Bank
4.0 - 7.75%
7.75%
146784
Vijaya Bank, Kotak Mahindra Bank4.0 - 8.0%
8.0%
148594
South Indian Bank
4.0 - 8.1%
8.1%
149324
Allahabad Bank
4.5 - 7.25%
7.25%
143226
Dena Bank, IDBI, Bank of Baroda
4.5 - 7.8%
7.80%
147144
UCO Bank
4.5 - 8.0%
8.0%
148594
IDBI Bank
4.75 - 7.8%
7.80%
147144
Union Bank of India
5.0 - 7.9%
7.90%
147868
Canara Bank
5.25 - 8.0%
8.0%
148594
SBI, SBBJ, SBT, YES Bank, Indian Bank
5.5 - 7.75%
7.75%
146784
Karur Vysya Bank
5.5 - 7.85%
7.85%
147505
Syndicate Bank
5.5 - 8.0%
8.0%
148594
State Bank of Patiala
6.0 - 7.97%
7.97%
148376
State Bank of Hyderabad
6.0 - 8.0%
8.0%
148594
Andhra Bank, PNB
7.0 - 7.25%
7.25%
143226
State Bank of Mysore
7.5 - 7.6%
7.60%
145708

So as you can see above, most of the banks offer nearly similar range of FD interest. And longer the tenure and amount, higher would be the returns because of the higher interest offered. But remember that interest earned on FD is taxable although it offers complete security to your money. So the actual amount received at the maturity value will be lower. And this limitation forces individuals to either opt for other tax saving investment products categorized as high risk and low risk.

Note: FD rates are revised by the banks often depending on the interest rate movements. So please check with the concerned bank before investing. Tenure also plays a key role in your investment strategy. For longer tenure there are various high return investments products in India. So if you fall into the category of risk taking investor then consider choosing mutual funds and equities.

What happens when you make premature withdrawal from FD?

Since tenors for FDs are fixed, penalty is charged by the bank upon premature withdrawal. However charges vary for each bank and are in the range of 1-2% depending on the tenure.

To whom FD is best suited?

Fixed deposits are best suited for investors who want higher returns compared to the ones by savings account.

Other zero risk options?

Check out this article on zero risk, high return investments in India.

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