When people invest in a term deposit, they generally look for a bank that offers the highest rate of interest. The rule of thumb is that the longer the tenure of the deposit, the higher the interest rate.
For instance, short-term bank FDs (up to six months) generally offer an interest rate between 3 and 4.5 per cent per annum. When the tenure stretches longer to one year, the interest rate rises to 6 per cent. So, as the tenure grows, the rate of interest inches upward.
Here, we list out the rate of interest offered by major banks on five-year FDs.
ICICI Bank: ICICI Bank offers an interest of 7 per cent on five-year tenure to general citizens. Senior citizens are entitled to receive 7.5 per cent on their five-year FD. These rates came into effect from July 12, 2024.
HDFC Bank: This private bank offers an interest of 7 per cent on five-year fixed deposits. The senior citizens are entitled to receive an extra 50 basis points. These rates came into effect on June 12, 2024.
Kotak Mahindra Bank: Kotak Mahindra Bank offers 6.2 per cent on its five-year fixed deposit to general citizens and 6.7 per cent to senior citizens. These rates came into force on June 14, 2024.
| Bank | General | Senior citizens |
| ICICI bank | 7 | 7.5 |
| HDFC Bank | 7 | 7.5 |
| Kotak Mahindra Bank | 6.2 | 6.7 |
| SBI | 6.5 | 7.5* |
| PNB | 6.50 | 7.00 |
| BOB | 6.5 | 7.15 |
(*Including additional premium of 50 bps under ”SBI We-care” deposit scheme.)
State Bank of India (SBI): The largest public lender offers 6.5 per cent on fixed deposits to general citizens on its five-year tenure, while senior citizens are offered 7.5 per cent for the same tenure. These interest rates came into force on June 15, 2024.
Punjab National Bank (PNB): The public sector lender offers 6.5 per cent to general citizens on five-year tenure while senior citizens are entitled to receive 7 per cent, as per the interest rates that came into force on June 10, 2024.
Bank of Baroda (BOB): One of the largest public sector banks, BoB offers 6.5 per cent on five-year deposits while senior citizens are offered 7.15 per cent, the bank website shows. The rates came into force on June 12, 2024.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.
