Best 5-Year Fixed Deposits in India (2018)

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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 IDFC Bank, which pays interest at the rate of 7.20% for 5 years.

Given below is an updated table of top banks in India that offer 5-year FDs:

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

Key highlights on 5-year FD rates

• Some of the best banks that offer term deposits in this slab include SBI, ICICI , Citibank, Axis Bank, Yes Bank, among others
• The interest rates paid vary anywhere between 6.00% p.a. to 7.20% p.a. when it comes to regular deposits
• As far as senior citizen deposits are concerned, the rate paid ranges from 6.50% p.a. to 7.40% p.a.
• Customers will have the option either to go for tax-saver FDs or normal deposits in this tenure range

SBI

• SBI pays an interest rate of 6.00% 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 by the bank is 0.50% higher per annum
• For 5-year deposits, those who are 60 years and above can expect a bank rate of 7.00% p.a. from SBI
• The same bank rate is paid for both tax saver and non tax saver deposits

ICICI Bank

• ICICI Bank pays interest at an attractive rate of 6.50% p.a. for this type of tenure range
• For senior citizens, the rate applicable is 7.00% p.a.
• These rates are paid for those deposits that are less than Rs.1 crore and come with premature withdrawal option
• The interest rate for the ICICI 5-year tax saver deposit and regular 5-year term deposit is the same

Axis Bank

• Axis Bank is one among the other popular and well-reputed banks in India that offers an interest rate of 6.90% p.a. for 5 year FDs
• In case of senior citizens, an investment period of 5 years will fetch a bank rate of 7.40% p.a.
• All those who fall under the 60 years and above age bracket will get an additional rate of interest
• The maximum amount of money that can be claimed for tax deduction for tax saver FDs that come under this tenure range is Rs.1.5 lakh

Yes Bank

• The annual percentage gain from Yes Bank deposits is 6.75% p.a.
• Senior citizens will get paid at the rate of 7.25% p.a. by Yes Bank
• Please note that investors can opt for both 5 year regular FDs and tax saver FDs. The interest rate for both are the same
• Interest will be paid quarterly or monthly

Citibank

• An FD rate of 5.00% 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 5.50% p.a.
• The bank rates are applicable for an investment amount of less than Rs.1 crore
• The bank offers tax savings term deposit schemes

HDFC Bank

• The yearly percentage gain from HDFC Bank fixed deposits will be 6.00% p.a.
• For senior citizens, the rate paid will be 6.50% p.a.
• The bank offers a number of facilities such as joint accounts, nomination, loan/overdraft among others
• Investors can choose the type of FD they want to invest in

IDFC Bank

• IDFC Bank pays an attractive interest rate of 7.20% p.a.
• For those who fall in the senior citizen slab, the gain percentage for 5 years will be 7.70% p.a.
• Customers can choose to put their money in the regular FD scheme or tax saver time deposit
• Yearly rate of return on tax saver and regular term deposit is the same

IndusInd Bank

• IndusInd Bank pays interest at the rate of 6.50% p.a.
• For senior citizens, the rate applicable is 7.00% p.a.
• Customers can choose a wide number of benefits
• Loan/overdraft facility can be taken