Fixed Deposits (FDs) or term deposits are an important component in anyone's financial portfolio. Generally, when it comes to investing in a term deposit, most people are confused about what tenure to choose. FDs come in various tenure ranges including short-term, medium-term and long-term. Long-term fixed deposits are usually held for anywhere between more than 5 years to 10 years. Generally, the tenure range offered on a all types of deposits (short, medium & long) range from 7 days to 10 years. Some banks may offer a higher interest rate for a longer investment duration but this differs from bank to bank. The maximum duration for long-term deposits is 10 years but some banks may also offer a higher duration in India.
A long-term fixed deposit is a type of deposit account, for which, the period of investment ranges from more than 5 years to 10 years or more.
Given below is the updated list of interest rates offered by some of the top banks on long-term fixed deposits, for regular individuals and senior citizens:
Updated on - 26 Mar 2023
| Top bank FD interest rates for 10-year deposits | ||
|---|---|---|
| Bank | Regular FD Rate (per annum) | Senior Citizen FD Rate (per annum) |
| Axis Bank FD | 5.75% | 6.50% |
| SBI FD | 5.50% | 6.30% |
| HDFC Bank FD | 5.60% | 6.35% |
| Citibank FD | 3.50% | 4.00% |
| Punjab National Bank FD | 5.25% | 5.75% |
The process involved in applying for this type of time deposit is very similar to the regular method. One can either go to the bank website and apply online through net banking or fill out an online application. You can also apply on a number of third-party financial websites like BankBazaar, through which you can compare interest rates of a number of bank FDs and then apply for it online through the website.
In the case of long-term deposits, there is a chance of earning more interest simply because of the pile up that happens to the principal and interest over the course of the years. There may also be other factors that may help you increase the returns out of such a fixed deposit. Given below are some of the factors:
Generally, the minimum investment that is required for such a type of term deposit is Rs.1,000. However, this amount differs from bank to bank.
Generally, most banks in the country offer fixed deposits that fall under the tenure range of over 5 years to 10 years. On the other hand, some banks will offer deposits only for 6 years to 7 years. This will depend on from bank-to-bank.
Generally, there are no additional benefits offered, unless it is some kind of special FD scheme.
To choose the best long-term time deposit scheme, the following factors need to be taken into consideration:
Unless it is a special tax-saver term deposit, you will not be able to get any type of tax benefit under Section 80C of the Income Tax Act.
Generally, most banks require you to be KYC compliant. Apart from this, the documents required may include:
No. This is not the case. Though some banks may offer a higher rate of interest on a longer tenure, this may not be the case always. Each bank offers a different rate of interest and it may not always be higher for a longer tenure.
Apart from banks, there are also Non-Banking Financial Companies (NBFCs) or other financial companies that offer a wide range of fixed deposits, including long-term time deposits.
In most cases, NBFCs usually pay a much higher rate of interest when compared to banks.
Expanded as Non-Banking Financial Company, it is a type of firm that is involved in granting loans or advances, or any other type of non-banking transaction.
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