For medium-term investing, let’s say five years, fixed deposits remain a preferred choice for many Indians. Their biggest advantage is predictability — since the interest rate is locked in at the time of investment, investors know exactly how much they will receive at maturity.
When parking money in fixed deposits, most investors look for banks offering the highest interest rates. While many prefer the safety and trust of PSU banks, others go for private banks and small finance banks (SFBs), even though they are slightly riskier, they often provide higher FD returns than their larger peers.
Based on Paisabazaar data, we collated a list of highest-paying fixed deposit rates – PSU banks, private banks and small finance banks — and analysed how much yourRs five lakh investment can grow over five years.
Which fixed deposits pay highest interst rate by private banks?
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Which types of banks offer the highest interest rates on 5-year fixed deposits?⌵
Small Finance Banks (SFBs) currently offer the highest 5-year FD interest rates, with Suryoday Small Finance Bank leading at 7.90%. Private banks like DCB Bank offer up to 7.25%, while PSU banks like Bank of Baroda offer up to 6.30% for the same tenure.
How much can ₹5 lakh earn in 5 years with the highest FD rates from different bank types?⌵
While specific earnings over 5 years are not detailed, SFBs offer the highest rates (e.g., 7.90%), followed by private banks (e.g., 7.25%), and then PSU banks (e.g., 6.30%). Investing in SFBs would likely yield the highest returns over the 5-year period due to their higher interest rates.
What are the top 5-year FD rates offered by PSU banks?⌵
Among PSU banks, Bank of Baroda offers the highest 5-year FD rate at 6.30%. Canara Bank offers 6.25%, and State Bank of India (SBI) offers 6.05% for a 5-year fixed deposit.
What are the highest 5-year FD rates offered by private banks?⌵
DCB Bank currently offers the highest 5-year FD interest rate for general citizens among private banks at 7.25%. IDFC FIRST Bank follows with 7.15%, and YES BANK, RBL Bank, and Tamilnad Mercantile Bank offer rates between 6.70% and 6.75%.
Which Small Finance Banks (SFBs) offer the highest 5-year FD rates?⌵
Suryoday Small Finance Bank offers the highest 5-year FD interest rate at 7.90% among SFBs. Jana Small Finance Bank is next with 7.77%, followed by Ujjivan Small Finance Bank at 7.20%.
Among major private sector lenders, DCB Bank is currently offering the highest 5-year FD interest rate for general citizens at 7.25%. IDFC FIRST Bank follows with a 7.15% rate, while YES BANK , RBL Bank and Tamilnad Mercantile Bank are offering between 6.70% and 6.75% for similar tenures.
| Bank name | 5 year FD interest rate | Maturity on ₹5 lakh |
|---|---|---|
| DCB | 7.25% | ₹7.9 lakh |
| IDFC First | 7.15% | ₹7.06 lakh |
| SBM Bank | 7% | ₹7.01 lakh |
| Yes Bank | 6.75 | ₹6.93 lakh |
Which PSU banks offer highest FD rates?
Among PSU banks, Bank of Baroda is offering the highest5-year FD rate at 6.30%. Meanwhile, Canara Bank and State Bank of India (SBI) are offering 6.25% and 6.05% interest rates respectively, on its 5-year FD.
| Bank name | Rate of interst on 5-year FD | Amount on maturity |
|---|---|---|
| BoB | 6.30% | ₹6.78 lakh |
| Canara Bank | 6.25% | ₹6.77 lakh |
| SBI | 6.05% | ₹6.70 lakh |
Which SFB banks offer highest FD rates?
Suryoday Small Finance Bank is offering the highest 5-year FD interest rate at 7.90% among all the SFBs. Followed by, Jana Small Finance Bank at 7.77% and Ujjivan Small Finance Bank at 7.20%.
| Name of the bank | 5-yr FD interest rate | Amount at maturity |
|---|---|---|
| , Suryoday SFB | 7.90% | ₹7.31 lakh |
| Jana SFB | 7.77% | ₹7.26 lakh |
| Ujjivan SFB | 7.20% | ₹7.07 lakh |