For instance when you earn 5 percent on your fixed deposit in the first year, the income gets added in the second year on which you stand to earn the interest. Here we compare the interest rates offered by different banks on their five-year fixed deposits.
Latest FD rates on five-year fixed deposits
HDFC Bank: This largest private sector bank offers 6.65 percent on a five year fixed deposit to regular citizens and 7.15 percent to senior citizens.
ICICI Bank: This private sector bank offers 6.75 percent on five-year term deposits to regular citizens and 7.25 percent to senior citizens thanks to an extra 50 basis points given to them.
Kotak Mahindra Bank: This private bank offers 6.2 percent to regular citizens and 6.7 percent to senior citizens on five-year fixed deposits.
State Bank of India (SBI): The largest public sector bank offers 6.3 percent on a five year fixed deposit to general citizens and 7.30 percent to senior citizens which includes an additional premium of 50 bps under SBI We-care deposit scheme.
Bank of Baroda: This large public sector bank offers 6.55 percent on five-year deposits to regular citizens and 7.15 percent to senior citizens.
Union Bank of India: This public sector bank offers 6.5 percent on five-year deposits to regular citizens and 7 percent to senior citizens.
Meanwhile, it is worth mentioning that the income that depositors stand to earn is post tax. Income earned on fixed deposits are subject to income tax. Therefore, it is recommended that the taxpayers who fall in the highest tax bracket do not invest a large sum in fixed deposits.
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