These 7 banks offer highest interest on their five year fixed deposits. Check list here | Mint

Investing into a fixed deposit gives consistent and safe returns to investors. No wonder then they are extremely popular among conservative investors who do not wish to risk their investment in stocks.

Another point worth noting is that the tenure of fixed deposit (FD) makes a considerable difference to the returns it accrues. In other words, high returns are typically offered on long duration term deposits.

Investors generally opt for a bank which offers the highest interest rate since a small difference of even 50 basis points matters a lot. For instance when you invest ₹5 lakh in a fixed deposit, a higher return of 50 basis points leads to an extra income of ₹12,500 over a five year period. And if the amount is raised to ₹10 lakh – the higher income becomes ₹25,000 on account of an extra 50 basis points.

Here, we list out top 7 banks which offer highest returns on their fixed deposits on their five year deposits.

Top banks offering interest on five year FDs

HDFC Bank: The largest private bank offers 7 percent to regular citizens and 7.5 percent to senior citizens on five year term deposits.

ICICI Bank: This private lender also offers 7 percent to regular citizens as well as 7.5 percent to senior citizens on five year term deposits.

Federal Bank: It offers 7.1 percent and 7.6 percent to regular and senior citizens, respectively

State lenders

Bank of Baroda: This state lender offers 6.8 percent and 7.4 percent to its regular and senior citizens, respectively on five year deposits.

Union Bank of India: This bank offers 6.5 percent on five year deposits to regular citizens and an extra 50 basis points to senior citizens. See the table above for details.

State Bank of India (SBI): The largest bank in India offers 6.5 percent to regular citizens and 7.5 percent to senior citizens (which includes additional premium of 50 bps under ‘SBI We-care’ deposit scheme) on five year deposits. 

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