Fixed deposits have emerged as one of the safest investment options for investors looking for guaranteed consistent interest rates. Many leading private and public lenders have hiked interest rates on fixed deposits after Reserve Bank of India's move to hike repo rate by 50 basis points to 4.9 % on June 8.
Among the various banks a leading foreign lender Deutsche Bank is offering the highest interest rate of 7% on 5-year fixed deposit.
The bank offers various tenors beginning from a minimum of 1 year 1 day to maximum 5 years. Under 1 year 1 day tenor, investors can get an interest rate of 6%. Therefore, if an investor deposits an amount of RS 10 lakh in this tenor, the return will be 61,537 after 1 year 1 day taking the total investment of Rs 10 lakh to Rs. 1,061,537.
The next tenor is 2 years 1 day wherein the interest rate is 6.25% and the investment amount of Rs 10 lakh will offer a return of 1,26,493.
Investors can opt for 3 years 1 day, 4 years 1 day, and 5 years tenors where the interest rate is 7%. So if you invest a sum of Rs 10 lakh for the tenure of 5 years, the investment will become Rs Rs. 1,414,778 after maturity.
Check the table below for more detail:
|Tenure||Interest rate per||Cumulative amount||Annualised yield*|
|annum (in %)||on maturity (in Rs.)||(in %)|
|1 year 1 day||6.00%||Rs. 1,061,537||6.14%|
|2 years 1 day||6.25%||Rs. 1,126,493||6.32%|
|3 years 1 day||7.00%||Rs. 1,231,673||7.72%|
|4 years 1 day||7.00%||Rs. 1,320,182||8.00%|
|5 Years||7.00%||Rs. 1,414,778||8.30%|