Investors can choose from a wide range 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.
Given below is an updated table of top banks in India that offer 5-year FDs: - Last Updated on 23 Oct 2021
| Best FD Rates for 5 years | ||
|---|---|---|
| Bank/Company | Regular Interest Rates (per annum) | Senior Citizen Interest Rates (per annum) |
| SBI Bank FD | 5.30% | 5.80% |
| ICICI Bank FD | 5.35% | 5.85% |
| Axis Bank FD | 5.40% | 5.90% |
| YES Bank FD | 6.75% | 7.50% |
| Citibank FD | 3.50% | 4.00% |
| HDFC Bank FD | 5.30% | 5.80% |
| IDFC First Bank FD | 4.50% | 5.00% |
| IndusInd Bank FD | 6.50% | 7.00% |
| Punjab and Sind Bank FD | 5.30% | 5.80% |
*Deposit rates are dynamic and can be updated by banks without prior notice
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.
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.
While this depends on the bank, most do offer nomination facility for all 5-year tenure fixed deposit accounts.
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