Fixed deposits are ideal investments for conservative, moderate and aggressive investors. They offer guaranteed returns on the deposit made. You can choose to invest in fixed deposits for any tenor ranging from 7 days to 10 years. In case you have a mid-term goal on the horizon, a 5-year FD may be a suitable option.
The FD interest rates for 5 years, however, vary from one bank or NBFC to the next. You can compare the various 5-year FD rates in the market and choose a deposit plan that aligns with your financial requirements.
That said, there is a special kind of 5-year fixed deposit that offers tax benefits. Also known as tax-saver FDs, this kind of deposit has a lock-in period of 5 years. This 5-year fixed deposit is tax-free too, because the amount that you invest in the plan is eligible for a tax deduction up to ₹1.5 Lakh during the financial year, u/s 80C of the Income Tax Act, 1961.
If you are looking for guaranteed returns that are higher than your savings account or bank FD interest, you can choose to invest in a fixed deposit plan offered by NBFCs. Here is a quick look at the FD interest rates for 5 years, as offered by some of the top NBFCs in the market. You can also check out how different deposit amounts grow via FDs for 5 years.
NBFC |
Interest Rate |
Investment Amount |
Maturity Amount |
8.05% p.a. |
₹25,000 |
₹37,246 |
|
₹1,00,000 |
₹1,48,985 |
||
₹5,00,000 |
₹7,44,925 |
||
₹10,00,000 |
₹14,89,849 |
||
₹50,00,000 |
₹74,49,246 |
||
₹1,00,00,000 |
₹1,48,98,491 |
||
7.95% p.a. |
₹25,000 |
₹36,310 |
|
₹1,00,000 |
₹1,45,240 |
||
₹5,00,000 |
₹7,26,200 |
||
₹10,00,000 |
₹14,52,401 |
||
₹50,00,000 |
₹72,62,002 |
||
₹1,00,00,000 |
₹1,45,24,005 |
||
7.75% p.a. |
₹25,000 |
₹36,733 |
|
₹1,00,000 |
₹1,46,933 |
||
₹5,00,000 |
₹7,34,664 |
||
₹10,00,000 |
₹14,69,328 |
||
₹50,00,000 |
₹73,46,640 |
||
₹1,00,00,000 |
₹1,46,93,281 |
||
AU Small Finance Bank |
7.75% p.a. |
₹25,000 |
₹36,696 |
₹1,00,000 |
₹1,46,784 |
||
₹5,00,000 |
₹7,33,921 |
||
₹10,00,000 |
₹14,67,842 |
||
₹50,00,000 |
₹73,39,214 |
||
₹1,00,00,000 |
₹1,46,78,428 |
||
YES Bank |
8.00% p.a. |
₹25,000 |
₹37,148 |
₹1,00,000 |
₹1,48,594 |
||
₹5,00,000 |
₹7,42,973 |
||
₹10,00,000 |
₹14,85,947 |
||
₹50,00,000 |
₹74,29,737 |
||
₹1,00,00,000 |
₹1,48,59,473 |
Note: The returns mentioned above are an estimate and and intended for informational purposes only. The effective rates are subject to change at the issuer's discretion. Please check the issuer's official website before you open an account.
If you are planning to invest in bank FDs, you need to compare the interest rates offered by different banks today. Here is a preview of the 5-year FD interest rates for SBI, PNB and Axis Bank to give you a fair idea of the rates prevailing in the market today. Check out how different investment amounts grow over a 5-year period.
Banks |
Interest Rate |
Investment Amount |
Maturity Amount |
State Bank of India |
5.85% per annum |
₹25,000 |
₹33,220 |
₹1,00,000 |
₹1,32,878 |
||
₹5,00,000 |
₹6,64,392 |
||
₹10,00,000 |
₹13,28,784 |
||
₹50,00,000 |
₹66,43,919 |
||
₹1,00,00,000 |
₹1,32,87,838 |
||
Punjab National Bank |
6.10% per annum |
₹25,000 |
₹33,614 |
₹1,00,000 |
₹1,34,455 |
||
₹5,00,000 |
₹6,72,275 |
||
₹10,00,000 |
₹13,44,550 |
||
₹50,00,000 |
₹67,22,749 |
||
₹1,00,00,000 |
₹1,34,45,499 |
||
Axis Bank |
6.10% per annum |
₹25,000 |
₹33,614 |
₹1,00,000 |
₹1,34,455 |
||
₹5,00,000 |
₹6,72,275 |
||
₹10,00,000 |
₹13,44,550 |
||
₹50,00,000 |
₹67,22,749 |
||
₹1,00,00,000 |
₹1,34,45,499 |
Now that you have a better idea of the FD interest rates for 5 years, you may be keen on seeing how to calculate the interest on a 5-year FD. For this, you can use a fixed deposit interest calculator online. Here is what you need to do to compute the interest on an FD with a tenor of 5 years.
Step 1: Select the customer category (senior or non-senior citizen).
Step 2: Enter the investment amount.
Step 3: Enter the investment tenor, which is 5 years.
Step 4: Fill in the 5 year FD interest rates. In some cases, the calculator auto-fills the rate of interest.
Step 5: Submit these details.
Once you do this, the FD calculator will display the total interest you will earn along with the total maturity amount at the end of the 5-year period.
TheFD calculator uses the following mathematical formula to compute the FD interest:
FD interest = P (1 + r/n)nt - P
In this formula, P is the principal amount invested, r is the interest rate, n is the number of times the interest is compounded during one year and t is the investment tenor in years.
This sums up the fundamental things you should know about FD interest rates for 5 years. Check the rates of interest offered by different banks and choose the entity that offers the best FD rates for 5-year deposits. And once you invest, keep in mind that you will continue to earn interest at the said rate throughout the investment tenor.
Check Monthly Interest Rate on your Fixed Deposits |
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Yes, you can break your 5-year standard fixed deposit. However, if it is a tax saver FD, you cannot prematurely withdraw your amount before the lock-in period of 5 years is complete. You need to remain invested in this kind of fixed deposit for 5 years.
This depends on the bank or the NBFC where you are going to make your fixed deposit investment. However, most of the banks and NBFCs offer a nomination facility for all fixed deposits of 5 years.
Yes, you can invest as much as you want to in a 5-year fixed deposit. However, if the 5-year fixed deposit is a tax-saver FD, you can only invest up to ₹1.5 lakhs in the FD account.
Yes, the interest on a 5-year fixed deposit is taxable under the head ‘Income from Other Sources.’ The rate of tax is the income tax slab rate that is applicable to you.
The FD interest rates for 5 years vary from one bank to another, and are subject to change at the banks’ discretion. You can compare the FD interest rates of different banks to identify the highest option in the current financial market.