Best FD Rates for 5 years in 2018

• Team Antworks

There are many Fixed Deposit (FD) schemes available for 5 years and this tenure is especially popular because 5-year FDs can also offer tax benefits. A tax saver fixed deposit comes with a lock-in period of 5 years and offers tax exemption of up to Rs.1.5 lakh under Section 80C of the Income Tax Act in India.

Top 10 5-year Fixed Deposit rates in India for 2018

*Interest rates may be revised from time to time without prior notice

Key highlights

• The best FD rate of 5-year deposits is offered by Mahaveer Bank, where the rate of return is above 9.00% for regular depositors and 10.00% p.a for senior citizens
• KTDFC and Fincare Small Finance Bank offers interest rates of up to 8.00% p.a.
• The interest rate for 5-year term deposits range from 7.00% p.a. to 9.50% p.a.
• For senior citizens, the rate of interest paid ranges from 7.50% p.a. to 10.00% p.a.

Top 10 Fixed Deposit rates for 5 years

1. Mahaveer Bank

• Mahaveer Bank offers an interest rate of more than 9.00% p.a. on all regular and senior citizen deposits
• All those who fall in the 60 years and 60 plus age bracket, will become eligible for an additional interest rate of 0.50% p.a.
• Auto renewal facility available
• Monthly and quarterly interest payments are made

2. KTDFC

• KTDFC offers one of the most highest paying company deposit schemes in India
• For 5-year deposits, the annual percentage gain for regular deposit holders will be 8.00% p.a
• The senior citizen deposit rate for 5 years is 8.25% p.a.
• They offer a wide range of interest payment options

3. Fincare Small Finance Bank

• An interest rate of 8.00% p.a can be obtained from Fincare Small Finance Bank FDs that come with an investment period of 5 years
• For senior citizens, the bank rate paid is 8.50% p.a.
• Joint account and nomination facility available
• The rates are applicable for deposits less than Rs.1 crore

4.Suryoday Small Finance Bank

• The FD rate offered on Suryoday Small Finance Bank term deposits is 7.75% p.a.
• For those who are 60 years of age or more an interest rate of 8.00% p.a. is paid
• Those who want to invest more than Rs.1 crore, will have to contact the bank directly
• Interest is computed on a quarterly basis

5. LIC Housing Finance Ltd

• Offers competitive rates of interest of 7.45% p.a.
• For those who are 60 years and above, the annual percentage rate is 8.00% p.a.
• They offer cumulative and non-cumulative deposits
• Interest is compounded on an annual basis

6. ICICI Home Finance

• More than 7% p.a. is paid on ICICI Home Finance deposits for both senior citizens and regular FD holders
• The scheme has good credit ratings: MAAA by ICRA and AAA (FD) by CARE
• The maximum tenure is 5 years and the interest is compounded each year
• Interest payout frequencies are monthly, quarterly and annual

7. IDFC Bank

• The bank offers senior citizens a high interest rate of 7.70% p.a.
• Regular depositors get an interest rate of 7.20% p.a.
• There are no penalty charges in case of withdrawal before the maturity date
• Complimentary savings account offered

8. LVB

• Pays above 7% for a tenure of 5 years
• Senior citizens get additional rate of interest
• Penalty applicable for pre-closure
• Flexible FD schemes

9. Repo Bank

• Repco Bank offer cumulative and non-cumulative fixed deposit schemes
• The different interest payout options include monthly, quarterly, half-yearly and yearly
• Pre-closure charges applicable
• An interest rate of 7.00% p.a and 7.50% p.a for senior citizens

10. Utkarsh Small Finance Bank

• Penalty charges are applicable in case of premature closure
• The minimum investment amount is Rs.1,000
• There is no upper limit on the amount of investment one can make