At the time of opening a fixed deposit, it is recommended to compare the interest rates offered by different banks. Although most banks offer somewhat similar rates, a marginal difference of 40-50 basis points can raise your wealth considerably. Another factor that helps accumulate wealth is the tenure for which the deposit is locked.
For instance, an extra 50 basis points on a two-year FD of ₹5 lakh can enable you to save an extra ₹5,000. And if the term deposit is locked for a total of five years, the extra savings could be ₹12,500.
Here, we compare the interest rates offered by different private and public sector banks on their five-year fixed deposits.
As we can see in the table above, HDFC Bank offers 7 per cent and 7.5 per cent on five-year fixed deposits to residents and senior citizens with effect from July 24.
ICICI Bank also offers the same interest rates on five-year deposits. Axis Bank offers 7 per cent and 7.75 per cent to regular and senior citizens on its five-year term deposits.
Yes Bank, another private lender, offers 7.25 per cent to regular citizens and 8 per cent to senior citizens on its five-year fixed deposits.
State lenders
State Bank of India offers 6.5 per cent to regular citizens and 7.5 per cent to senior citizens on five-year FDs.
PNB offers 6.5 per cent to regular citizens and 7 per cent to senior citizens as per the rates which came into force on January 1, 2025.
Bank of Baroda, meanwhile, offer slightly higher (6.8 per cent) to general citizens and 7.4 per cent to senior citizens. These rates came into force on October 14, 2024.
