Best Fd Interest Rates With 5 Year Tenure

The FDs can be of tenure ranging from 7 Days to 20 Yr . The ROI for different schemes starts from 7.50% for the general public and 8.00% for senior citizens. The min amount required to open a Fixed Deposit in such scheme is Rs.1,000

5-Year Fixed Deposit Rate

Investors in India can choose from the diverse assortment of 5-year Fixed Deposits options offered by banks and financial institutions at attractive interest rates. There are many tax-saver Fixed deposit plans available to an investor. However, they can choose to park their savings in the other 5-Year Fixed deposit options. The YES Bank offers its depositors the most lucrative interest rates as they can take home interest up to 6.50% per annum on their 5-year fixed deposit.

5-year Fixed Deposit Scheme Highlights

The investors inclined to invest in the 5-year fixed deposit must refer to the following highlights:

  • IndusInd Bank offers the highest interest rate to its depositors, i.e. above 6.5% per annum.
  • Interest rate up to 8% per annum is offered by institutions such as KTDFC and Fincare Small Finance Bank.
  • Generally, the interest rate offered to the investors in a 5-year Fixed Deposit ranges from 7% per annum to 9.50% per annum.
  • The senior citizens stand to gain more from the scheme as an additional interest rate generally ranges from 7.5% per annum to 10% per annum.

Benefits of the 5-year Fixed Deposit

The investors who have parked their investments in the 5-year fixed deposit are eligible to avail of the following benefits:

  • The investor is eligible to make a withdrawal after concluding the 5-year lock-in period.
  • Under Section 80C of the Income Tax Act, 1961, the investor can avail of tax exemptions.
  • An additional interest of 0.5% is offered to the senior citizens who have invested in 5-year fixed deposits.
  • The 5-year fixed deposit scheme allows the investors to establish a joint account. However, it is to be noted that only the primary account holders can avail of the tax benefits.

How Calculate your 5-Year Fixed Deposit Interest?

The concerned investor can take the assistance of the various Fixed deposit calculators available online. Which are self-help tools designed to help the user to compute the value of interest and principal amount at the time of maturity. The user is required to mention the following:

Amount: Refers to the amount an investor is willing to deposit in the scheme

Interest rate: The interest rate offered by the institution for the deposits

Tenure: Refers to the tenure of the investment. In this case, the tenure would automatically be 5 years.

After mentioning the values above, the calculator will derive the principal and the interest amount almost instantaneously.

The investor can also derive the interest amount manually with the help of the following formula:

Principal * {(1 + Rate of Interest /100)^ Tenure}] - Principal

How to Select the Best 5-Year Fixed Deposit for You?

The investor shall assess the following factors while selecting the 5-Year Fixed deposit option that meets their investment objectives:

  • The first parameter to be assessed is the interest rate offered by the bank or financial institution. The higher the interest rate, the higher would be the maturity amount.
  • Investors should also determine whether they want to invest in a cumulative or non-cumulative FD. A Cumulative Fixed deposit enables an investor to generate a significant corpus until maturity. The non-cumulative option can be utilised as a source of income available to the depositor.
  • The investor shall also refer to the penalty levied by the institution on premature withdrawals as they might need funds invested in the scheme in case of emergencies. The investor should choose a scheme that levies nominal interest rates.

Why is Urban Money Ideal for Fixed Deposit Investment?

Urban money provides hassle-free financial and banking services to its customers with the assistance of sophisticated software solutions. Urban Money aims to provide a customer-friendly experience to its investors as they embark on their investment journey. Our services ensure that the investors get the best interest rates on their Fixed deposit investments so they can conveniently attain their financial goals.

FAQs

Which bank is best for FD for 5 years?

The IndusInd Bank offers the best interest rates on the 5-Year Fixed Deposits. The investor can avail of interest above 6.50% per annum. Additional interest is also granted to senior citizens.

How to choose the best FD scheme for 5 years?

The applicant should assess the interest rates offered by various banks and financial institutions. Along with their penalty charges on premature withdrawal.

What are the factors that affect FD interest rates?

The demand and supply of credit determine the interest rate offered on fixed deposits. If the demand for credit is high from the banks,, the bank increases its interest rate. On the other hand, if the need for credit is low, the banks reduce the interest rates.

What types of Fixed deposits are available for 5 Years?

Banks and financial institutions offer the following types of fixed deposits to cater to the diverse needs of customers.

 

  • Standard FDs
  • Cumulative
  • Non-cumulative deposits
  • Senior Citizens FD
  • Special Deposits for Children

Flexi-Fixed deposits

Urban Money