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
| Best Fixed Deposit Rates for 5 years | ||
|---|---|---|
| Bank/Company | Regular Interest Rates (per annum) | Senior Citizen Interest Rates (per annum) |
| Mahaveer Bank | 9.50% | 10.00% |
| KTDFC | 8.00% | 8.25% |
| Fincare Small Finance Bank | 8.00% | 8.50% |
| Suryoday Small Finance Bank | 7.75% | 8.00% |
| LIC Housing Finance Ltd | 7.45% | 7.70% |
| ICICI Home Finance | 7.30% | 7.55% |
| IDFC Bank | 7.20% | 7.70% |
| Lakshmi Vilas Bank (LVB) | 7.15% | 7.75% |
| Repco Bank | 7.00% | 7.50% |
| Utkarsh Small Finance Bank | 7.00% | 7.50% |
*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