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. 

List of NBFC Fixed Deposit Interest Rates for 5 Year Fixed Deposit

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

Bajaj Finance FD

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

PNB Housing Finance FD

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

Mahindra Finance FD

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

Ujjivan Small Finance Bank

7.40% p.a.

₹25,000

₹ 35,724

₹1,00,000

₹ 1,42,896

₹5,00,000

₹ 7,14,482

₹10,00,000

₹ 14,28,964

₹50,00,000

₹ 71,44,822

₹1,00,00,000

₹ 1,42,89,644

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.

List of Bank Fixed Deposit Interest Rates for 5 Year Fixed Deposit

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

How to Calculate FD Interest on 5-year FD

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.

Conclusion

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. 

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs

Can I break my 5-year FD?

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.

Is the nomination facility available for 5-year fixed deposits?

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.

Can I put more than ₹1.5 lakh into a fixed deposit for five 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. 

Is the interest on a 5-year fixed deposit taxable?

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.

Which bank gives the highest interest rate on FD for 5 years?

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. 

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