Looking To Set Up A 5-Year Fixed Deposit? Find Out Latest Interest Rates Paid By Banks

Major banks today pay an interest rate ranging from 3.5 per cent to 7.75 per cent on fixed deposits for a period of up to five years.

Looking To Set Up A 5-Year Fixed Deposit? Find Out Latest Interest Rates Paid By Banks

Bank fixed deposit: SBI recently revised its interest rates on fixed deposits across select maturities

A fixed deposit (FD) is a financial instrument that offers a fixed income on deposit of money. This cash deposit is for a specific maturity period - ranging from few days to few years - also known as term of the fixed deposit. Major banks today, from the country's largest lender State Bank of India to its private sector peers ICICI Bank and HDFC Bank, pay an interest rate ranging from 3.5 per cent to 7.75 per cent on fixed deposits under Rs 1 crore for a period of up to five years. State-run SBI recently announced a hike in its fixed deposit interest rates in select maturities.

Here's a comparison of interest rates offered by SBI, HDFC Bank, ICICI Bank and Axis Bank on a fixed deposit below Rs 1 crore for a term of up to 5 years:

SBI

TermInterest rate for general public (% per annum)Interest rate for senior citizens (% per annum)
7 days to 45 days5.756.25
46 days to 179 days6.256.75
180 days to 210 days6.356.85
211 days to less than 1 year6.46.9
1 year to less than 2 year6.77.2
2 years to less than 3 years6.757.25
3 years to less than 5 years6.87.3
(Source: sbi.co.in)

(Also read: SBI offers auto debit facility for making NPS contributions)

HDFC Bank

 Interest rate (%)
TermFor general publicFor senior citizens
7 - 14 days3.50%4.00%
15 - 29 days4.25%4.75%
30 - 45 days5.75%6.25%
46 - 60 days6.25%6.75%
61 - 90 days6.25%6.75%
91 days - 6 months6.25%6.75%
6 months 1 day- 6 months 3 days6.35%6.85%
6 months 4 days6.35%6.85%
6 months 5 days- 9 months6.40%6.90%
9 months 1 day- 9 months 3 days6.40%6.90%
9 months 4 days6.40%6.90%
9 months 5 days - 9 months 15 days6.40%6.90%
9 months 16 days6.40%6.90%
9 months 17 days < 1 Year6.40%6.90%
1 Year6.85%7.35%
1 year 1 day - 1 year 3 days6.65%7.15%
1 year 4 days6.65%7.15%
1 year 5 days - 1 Year 15 Days6.65%7.15%
1 Year 16 days6.65%7.15%
1 year 17 days - 2 Years7.00%7.50%
2 years 1day - 2 Years 15 days7.00%7.50%
2 Years 16 days7.00%7.50%
2 years 17 days - 3 Years7.00%7.50%
3 years 1 day - 5 years7.00%7.50%
(Source: hdfcbank.com)

ICICI Bank

 Interest rate (%)
TermFor general publicFor senior citizens
7 days to 14 days44.5
15 days to 29 days4.254.75
30 days to 45 days5.56
46 days to 60 days5.756.25
61 days to 90 days66.5
91 days to 120 days66.5
121 days to 184 days66.5
185 days to 289 days6.256.75
290 days to less than 1 year6.57
1 year to 389 days6.67.1
390 days to 2 years6.757.25
2 years 1 day upto 5 years77.5
(Source: icicibank.com)

Axis Bank

TermInterest rate for general public (% per annum)Interest rate for senior citizens (% per annum)
7 days to 14 days3.53.5
15 days to 29 days3.53.5
30 days to 45 days5.55.5
46 days to 60 days66
61 days < 3 months66
3 months < 4 months66
4 months < 5 months66
5 months < 6 months66
6 months < 7 months6.256.5
7 months < 8 months6.256.5
8 months < 9 months6.256.5
9 months < 10 months6.56.75
10 months < 11 months6.56.75
11 months < 1 year6.56.75
1 year < 13 months7.17.75
13 months < 14 months7.17.75
14 months < 15 months77.65
15 months < 16 months77.65
16 months < 17 months77.65
17 months < 18 months77.65
18 Months < 2 years77.65
2 years < 30 months77.65
30 months < 3 years77.5
3 years < 5 years77.5
(Source: axisbank.com)

Unlike market-linked instruments such as mutual funds, investment in bank FDs does not involve any equity-related risks and thus FDs are more suitable for investors with low-risk appetite, say financial planners.

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