Fixed deposits: Top 6 banks offer highest interest rates on their 5-year FDs
fixed deposits (FDs), one of the key motivations for investors is to earn as high an interest as possible. The rate of interest varies not only from bank to bank but from tenure to tenure.The unwritten rule is that shorter the tenure, lower the interest rate.
And longer the tenure, higher the interest rate. This is generally true.For instance, when you deposit an FD in State Bank of India (SBI), the rate of interest stands at 5.5 percent on a three-month FD, while it increases to 6.8 percent when the tenure is a 1-year long.ALSO READ | Fixed deposits: How long will it take to double your money? Even 10 years may not be enoughHere, we give a lowdown on the interest rate offered by top banks on 5-year FD, which is typically the highest rate that the banks offer:SBI: As one can see in the table above, State Bank of India offers 6.5 percent on its five-year FDs whereas for a shorter tenure i.e., one year — the interest rate is 6.8 percent.
These rates came into effect on May 15, 2024.ICICI Bank: The private lender offers 7 percent on its five-year FD while the short tenure term deposit i.e., for one year gives an interest of 6.7 percent. These rates came into effect on Feb 17.ALSO READ | Bank of India launches 666 days Fixed Deposit at 7.80% annual returns for senior citizens.
Check all details hereHDFC Bank: The largest private bank offers 7 percent interest on five-year fixed deposit whereas the short tenure FD i.e., for one year, the rate of interest is 6.6 percent. These rates came into effect on Feb 9, 2024.Bank of Baroda (BOB): The state lender offers 6.50 percent on 5-year fixed deposit while the one-year FD offers 6.85 percent per annum.
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