Which Bank Gives the Highest Interest on 5-Year Fixed Deposits?

Fixed deposits (FDs) continue to be one of the safest and most trusted investment options for Indian savers. They offer guaranteed returns, protect your capital, and are especially attractive to senior citizens, who usually earn higher interest rates than regular investors.

If you are planning to lock your money for five years, choosing a bank that offers a better interest rate can significantly boost your returns. Here's a look at some of the top 5-year FD rates currently offered by public sector banks, private banks, and small finance banks.

Top 5-Year FD Rates in Public Sector Banks

Government-owned banks are preferred by many investors for their stability and trust factor. Here are some of the best rates currently available:

Bank of Baroda - 6.30%
Canara Bank - 6.25%
Punjab National Bank (PNB) - 6.10%
State Bank of India (SBI) - 6.05%
Bank of India - 6.00%

Among public sector lenders, Bank of Baroda is offering the highest interest rate on a 5-year fixed deposit.

Best 5-Year FD Rates in Private Banks

Private banks generally offer slightly higher returns compared to PSU banks. Some attractive options include:

DCB Bank - 7.25%
IDFC FIRST Bank - 7.15%
SBM Bank India - 7.00%
Yes Bank - 6.75%
Axis Bank - 6.45%

DCB Bank currently leads the private banking segment with a 7.25% interest rate for a five-year FD.

Highest 5-Year FD Rates in Small Finance Banks

Small finance banks are known for offering some of the highest FD rates in the market. Here are the top contenders:

Suryoday Small Finance Bank - 7.90%
Jana Small Finance Bank - 7.77%
Ujjivan Small Finance Bank - 7.20%
AU Small Finance Bank - 6.75%

Suryoday Small Finance Bank is offering the highest rate in this list at 7.90% for a 5-year deposit.

Which Bank Offers the Highest 5-Year FD Rate?

Among all the banks listed above, Suryoday Small Finance Bank offers the best 5-year FD return at 7.90%. This is significantly higher than most public and private sector banks.

Should You Invest in a 5-Year FD?

A 5-year FD can be a smart choice if you want:

Guaranteed returns
Low risk
Stable income
Tax-saving benefits under Section 80C (for tax-saving FDs)

Before investing, compare rates, check the bank's credibility, and ensure the tenure matches your financial goals.

If safety is your top priority, public sector banks remain a solid choice. If you want higher returns, private and small finance banks offer better rates. For investors willing to explore beyond traditional banks, small finance banks currently provide the most attractive 5-year FD interest rates.