Fixed deposits (FDs) remain a popular investment choice for many, driven by the desire to earn competitive interest rates. Different banks offer varying interest rates, with longer tenures typically associated with higher returns.
Here’s a breakdown of the top banks offering the highest interest rates on their 5-year FDs, providing investors with an opportunity for substantial returns:
1. State Bank of India (SBI)
SBI offers an interest rate of 6.5% on its 5-year FDs, effective from May 15, 2024. For shorter tenures such as one year, the interest rate stands at 6.8%.
2. ICICI Bank
ICICI Bank, a leading private lender, provides a competitive interest rate of 7% on its 5-year FDs. For a one-year tenure, the interest rate is 6.7%. These rates became effective from February 17.
3. HDFC Bank
HDFC Bank, the largest private bank, offers a 7% interest rate on its 5-year fixed deposits, with the rates effective from February 9, 2024. For a one-year FD, the interest rate is 6.6%.
4. Bank of Baroda (BOB)
Bank of Baroda, a prominent state lender, provides a 6.50% interest rate on 5-year fixed deposits. For one-year FDs, the interest rate is 6.85%. These rates came into effect on January 15, 2024.
5. Kotak Mahindra Bank
Kotak Mahindra Bank offers a competitive interest rate of 6.20% on its 5-year fixed deposits. For one-year FDs, the interest rate stands at 7.10%. These rates became effective from February 27, 2024.
6. Punjab National Bank (PNB)
PNB offers a 6.55% interest rate on its 5-year fixed deposits, effective from April 12, 2024. For shorter tenures like one year, the interest rate is 6.8%.
These banks provide attractive interest rates on their 5-year FDs, offering investors the potential for significant returns over the investment period.
It’s essential for investors to consider these rates and tenure options carefully to make informed investment decisions aligned with their financial goals.
