Want to deposit money for 5 years? These 6 banks offer highest interest rate on long term fixed deposits

 

Most banks tend to offer higher rates of interest on long duration fixed deposits. The top banks listed here give interest in the range of 6.5 to 7.5 percent per annum.

SBI offers 6.5 percent on five-year deposits to regular citizens and 7.5 percent to senior citizens.

Since the Reserve Bank of India (RBI) is expected to cut repo rate towards the year-end, as per a Reuters report, thus triggering the low interest rate cycle — it is recommended to lock your fixed deposits at higher rates for the long term.

And in case you want to make the most of the prevailing interest rates, you can explore the banks which offer the highest interest rates.

Here we give a lowdown on banks offering highest rates of interest on their five-year-fixed deposits.

Fixed deposit interest rates on five-year deposits

Bank of Baroda: This state lender offers interest up to 6.5 percent per annum on five-year fixed deposits (FDs). Senior citizens are entitled to receive 7.5 percent on their deposits.

Those who want to deposit their money for a shorter duration (3 years) can also earn 6.5 percent on their fixed deposits while senior citizens are offered 7.15 percent on their fixed deposits. These rates came into effect on Jan 15, 2024.

State Bank of India (SBI): SBI offers 6.5 percent on five-year deposits to regular citizens and 7.5 percent to senior citizens. At the same time, specific tenor scheme Amrit Kalash which is an FD scheme for 400 days offers 7.10 percent annual interest to regular citizens, and 7.60 percent to senior citizens.

HDFC Bank: This private lender offers interest at the rate of 7 percent per annum on its five-year deposits to regular citizens, and 7.5 percent to senior citizens. These rates came into effect on Feb 9, 2024.

Kotak Mahindra Bank: The private lender offers interest at the rate of 6.25 percent per annum on its five-year fixed deposits to regular and senior citizens. These rates came into effect on April 19, 2024.

Also Read: Higher interest rates than Sukanya Samriddhi Yojana? These six banks offer best interest rates. What should you do?

Punjab National Bank: This state lender offers 6.5 percent to regular citizens on five-year fixed deposits and 7 percent to senior citizens and 7.3 percent to super senior citizens i.e., above 80 years of age. These rates came into effect on April 12, 2024.

ICICI Bank: The private lender offers 7 percent on its five-year fixed deposits to regular citizens and 7.5 percent to senior citizens. These rates came into effect on Feb 17.