Best 5-Year Fixed Deposits in India

Investors can choose from a wide range of fixed deposits (FD) that offer a high rate of interest 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. The highest yielding fixed deposit scheme is offered by YES Bank, which pays interest at the rate of 6.75% p.a. for 5 years.

Best Interest Rates for 5-Year Fixed Deposits Below Rs.2 Crore in India

Updated on - 24 May 2022

*Deposit rates are dynamic and can be updated by banks without prior notice

Key highlights on 5-year FD rates

• The best FD rate of 5-year deposits is offered by IndusInd Bank, where the rate of return is above 6.50%.
• KTDFC and Fincare Small Finance Bank offers interest rates of up to 8.00% p.a.
• The interest rate for 5-year term deposits range from 7.00% p.a. to 9.50% p.a.
• For senior citizens, the rate of interest paid ranges from 7.50% p.a. to 10.00% p.a.

SBI

• SBI pays an interest rate of 5.50% p.a. for an investment period of 5 years for all regular term deposit holders
• When it comes to senior citizens, the rate of interest paid is 6.30% p.a. for this tenure

Equitas Small Finance Bank

• Equitas Small Finance Bank offers an interest rate of 5.25% p.a. on FDs with a tenure of 5 years.
• For senior citizens, an interest rate of 5.75% p.a. is offered for the same tenure

Axis Bank

• Axis Bank is one among the other popular and well-reputed banks in India that offers an interest rate of 5.75% p.a. for the FDs opened for a period of 5 years
• In case of senior citizens, an investment period of 5 years fetches an interest rate of 6.50% per annum

YES Bank

• The interest rate for the general public offered by Yes Bank for fixed deposits for a period of 5 years is 6.25% per annum.
• Senior citizens will get paid at the rate of 7.00% per annum by YES Bank.
• Investors can opt for the 5 years tax free FD or the regular fixed deposits. The interest rate is the same for both the FDs
• Interest will be paid quarterly or monthly

Citibank

• An FD rate of 3.50% p.a. can be earned from Citibank term deposits for investing for a time period of 5 years
• For senior citizens, the interest rate paid by Citibank will be 4.00% p.a.
• The bank rates are applicable for an investment amount that is equal to less than Rs.2 crore
• The bank offers tax savings term deposit schemes as well

HDFC Bank

• The yearly percentage gain from HDFC Bank fixed deposits opened for a period of 5 years is 5.30% p.a.
• For senior citizens, the interest rate paid by the bank is 5.80% p.a.

IDFC First Bank

• IDFC Bank pays an attractive interest rate of 6.00% p.a. for fixed deposits opened for a period of 5 years
• For those who fall in the senior citizen slab, the gain percentage for the 5-year tax saver FD is 6.50% p.a.
• Customers can choose to put their money in the regular FD scheme or tax saver time deposit

IndusInd Bank

• The bank offers the general public an interest rate of 6.50% p.a. for regular term deposits opened for a period of 5 years
• For senior citizens, the rate applicable is 7.00% p.a.

Punjab and Sind Bank

• The rate of interest paid on Punjab and Sind Bank FDs for a 5-year tenure is 5.30% p.a.
• Individuals who fall in the senior citizen bracket can earn an interest rate of 5.80% p.a.

Frequently Asked Questions (FAQs)

1. Are all 5-year tenure FDs also tax-saver FDs?

   No, banks offer a separate type of FD called tax-saver FDs which have benefits of tax exemption under Section 80C of the Income Tax Act. However, these tax-saver FDs also come with a lock-in period and a maximum tenure of 5 years, which means there is no facility for premature withdrawal. However, if you book a normal fixed deposit for up to 5 years, and not under the tax-saver FD scheme, premature withdrawal is allowed subject to a penalty which varies from bank to bank.

2. Can I invest more than Rs.1.5 lakh in 5-year fixed deposits?

   Yes, you can invest more than Rs.1.5 lakh in normal 5-year fixed deposits. The maximum limit of Rs.1.5 lakh is only for tax-saver FDs which also have a 5-year tenure which is also a lock-in period.

3. Is nomination facility available for 5-year fixed deposits?

   While this depends on the bank, most do offer nomination facility for all 5-year tenure fixed deposit accounts.