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Top 4 Private Sector Banks Promising Interest Up To 7% On 5 Year Fixed Deposits

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When it comes to seeking tax benefits under Section 80C of the Income Tax Act, guaranteed returns, deposit safety provided by DICGC, long-term deposits of 5 years, and so on, investing in a tax-saving fixed deposit is a good choice of investment vehicle under the debt category. Apart from the assured returns and deposit safety, here we are talking about tax-saving fixed deposits which means that you will have to make a lock-in of your deposits for 5 years or up to 5 years and hence you can not make a premature withdrawal which is the only key consideration which investors especially senior citizens need to keep in mind.

 

Under a single PAN, a depositor can park a maximum amount of up to Rs 1.5 lakhs in tax-saving fixed deposits that can be Domestic/NRO but not NRE Fixed Deposits. Senior citizens aged 60 and above who are resident Indians are also entitled for an additional interest rate of 0.5 percent per annum on tax-saving fixed deposits. Concerning interest rates, we have selected the top four private sector banks in India based on our own analysis, that are presently offering the best and highest interest rates on tax-saving fixed deposits in the market.

Note: The interest rates on 5 Year fixed deposits are marked in bold.

Yes Bank
 

Yes Bank

Yes Bank has adjusted its interest rates on fixed deposits of less than Rs 2 crore, effective August 5, 2021. Following the most recent modification, Yes Bank now provides an interest rate of 3.25 percent on resident fixed deposits maturing in 7 to 14 days, 3.5 percent on deposits maturing in 15 to 45 days, and 4 percent on FDs maturing in 46 to 90 days respectively. Yes Bank offers 4.5 percent and 5% on term deposits maturing in 3 to less than 6 months and 6 to less than 9 months.

Yes Bank offers a 5.25 percent interest rate on FDs with a maturity period ranging from 9 months to less than one year. Resident term deposits maturing in one year to less than two years will earn a 6% interest rate in 2 to 3 years will return 6.25 percent, whereas deposits maturing in 3 to 10 years would return 6.50 percent to the general public. Below are the latest interest rates on fixed deposits of Yes Bank for both regular and senior citizens.

PeriodRegular Interest RatesAnnualised YieldSenior Citizen Interest RatesAnnualised Yield
7 to 14 days 3.25% 3.25% 3.75% 3.75%
15 to 45 days 3.50% 3.50% 4.00% 4.00%
46 to 90 days 4.00% 4.00% 4.50% 4.50%
3 months to < 6 months 4.50% 4.50% 5.00% 5.00%
6 months to < 9 months 5.00% 5.03% 5.50% 5.54%
9 months to < 1 Year 5.25% 5.32% 5.75% 5.83%
1 year < 18 Months 5.75% 5.88% 6.25% 6.40%
18 Months to < 3 years 6.00% 6.14% 6.50% 6.66%
3 Years to < 5 years 6.25% 6.40% 7.00% 7.19%
5 Years to <= 10 years 6.50% 6.66% 7.25% 7.45%
Source: Bank Website, Rates for < 2 Crore w.e.f 5th August 2021

RBL Bank

RBL Bank

RBL Bank has revised interest rates on Domestic, NRO, NRE, and Flexi Fixed Deposits of less than Rs 3 Cr, effective September 1, 2021. RBL Bank provides 3.25 percent on deposits maturing in seven to fourteen days, 3.75 percent on deposits maturing in fifteen to forty-five days, and 4.00 percent on domestic resident deposits maturing in forty-six to ninety days. Fixed deposits maturing in 91 to 180 days will offer 4.50 percent interest, while those maturing in 181 to 240 days would provide you 5.00 percent interest. FDs maturing in 241 and 364 days, the private sector bank will now provide a 5.25 percent interest rate. RBL bank provides a 6.00 percent interest rate on FDs maturing in 12 months to less than 36 months and a 6.30 percent interest rate on deposits maturing in 36 months to less than 60 months 1 day.

FDs maturing in 60 months 2 days to less than 240 months will offer you an interest rate of 5.75 percent. Following the bank's most recent interest rate modification, the general public will now get an interest rate of 6.30 percent on tax-saving fixed deposits of 60 months (lock-in period) on deposits up to Rs 3 Cr. Check out the latest rates on fixed deposits of RBL Bank below.

Period of DepositRegular Interest RatesSenior Citizen Interest Rates
7 days to 14 days 3.25% 3.75%
15 days to 45 days 3.75% 4.25%
46 days to 90 days 4.00% 4.50%
91 days to 180 days 4.50% 5.00%
181 days to 240 days 5.00% 5.50%
241 days to 364 days 5.25% 5.75%
12 months to less than 24 months 6.00% 6.50%
24 months to less than 36 months 6.00% 6.50%
36 months to less than 60 months 6.30% 6.80%
60 months to 60 months 1 day 6.30% 6.80%
60 months 2 days to less than 120 months 5.75% 6.25%
120 months to 240 months 5.75% 6.25%
Tax Savings Fixed Deposit (60 months) 6.30% 6.80%
Source: Bank Website: w.e.f. September 01, 2021

IndusInd Bank

IndusInd Bank

IndusInd Bank had adjusted interest rates on domestic/NRO/NRE deposits of less than Rs 2 Cr, commencing from July 23rd, 2021. After the latest revision, the bank is now promising an interest rate of 2.50% to 6.00% to the general public and 3.00% - 6.50% to senior citizens on deposits tenure ranging from 7 days to 61 months and above.

On tax-saving fixed deposits, the bank is now among the top 3 private sector banks of India promising the highest interest rates. On Indus Tax Saver Scheme (5 years), the bank is offering an interest rate of 6.00% to the general public and 6.50% to senior citizens. IndusInd Bank's latest interest rates on fixed deposits for both regular and senior citizens are framed below.

TenureRegular Interest Rates (in % p.a.)Annualised YieldSenior Citizen Interest Rates (in % p.a.)Annualised Yield
7 days to 14 days 2.5 2.5 3 3
15 days to 30 days 2.75 2.75 3.25 3.25
31 days to 45 days 3 3 3.5 3.5
46 days to 60 days 3.25 3.25 3.75 3.75
61 days to 90 days 3.4 3.4 3.9 3.9
91 days to 120 days 3.75 3.75 4.25 4.25
121 days to 180 days 4.25 4.25 4.75 4.75
181 days to 210 days 4.6 4.63 5.1 5.13
211 days to 269 days 4.75 4.81 5.25 5.32
270 days to 354 days 5.5 5.58 6 6.09
355 days to 364 days 5.5 5.58 6 6.09
1 Year to below 1 Year 6 Months 6 6.18 6.5 6.71
1 Year 6 Months to below 1 Year 7 Months 6 6.23 6.5 6.77
1 Year 7 Months to below 2 Years 6 6.23 6.5 6.77
2 years to below 2 years 6 Months 6 6.32 6.5 6.88
2 years 6 Months to below 2 years 9 Months 6 6.47 6.5 7.05
2 years 9 months upto 3 years 6 6.52 6.5 7.11
Above 3 years upto 61 months 6 6.72 6.5 7.36
61 months and above 5.5 6.28 6 6.94
Indus Tax Saver Scheme (5 years) 6 6.94 6.5 7.61
Source: Bank Website, w.e.f. July 23rd, 2021

DCB Bank

DCB Bank

DCB Bank has updated the interest rates on its fixed deposit scheme, which will enter into force on August 17, 2021. Following the latest FD interest rate modification, the bank now provides a 4.35 percent interest rate on resident Indian fixed deposits maturing in 7 to 90 days.

The bank provides 5.05 percent and 5.45 percent interest rates on deposits maturing in 91 days to less than 6 months and 6 months to less than 12 months. The bank is currently providing an interest rate of 5.55 percent on deposits maturing in one year. On FDs with a maturity period of more than 12 months to less than 15 months, the bank offers a 5.30 percent interest rate. DCB Bank is giving a 5.50 percent interest rate on fixed deposits maturing in 15 to 18 18 months and 18 months to 700 days.

The bank is currently offering a 5.95 percent interest rate on fixed deposits maturing in 700 days. The private sector bank is offering a 5.50 percent interest rate on term deposits maturing in more than 700 days to less than 36 months and a 5.95 percent interest rate on resident term deposits maturing in 36 to 120 months to the general public. The bank offers the following interest rates to both regular and senior citizens for single deposits of less than Rs.2 Cr.

TenureDeposit Interest Rate (in % p.a.)Annualised Yield (in % p.a.)Rate for Senior Citizens (in % p.a.)Annualised Yield (in % p.a.)
7 days to 14 days 4.35% 4.35% 4.85% 4.85%
15 days to 45 days 4.35% 4.35% 4.85% 4.85%
46 days to 90 days 4.35% 4.35% 4.85% 4.85%
91 days to less than 6 months 5.05% 5.05% 5.55% 5.55%
6 months to less than 12 months 5.45% 5.56% 5.95% 6.08%
12 months 5.55% 5.67% 6.05% 6.19%
More than 12 months to less than 15 months 5.30% 5.41% 5.80% 5.93%
15 months to less than 18 months 5.50% 5.65% 6.00% 6.18%
18 months to less than 700 days 5.50% 5.73% 6.00% 6.28%
700 days 5.95% 6.22% 6.45% 6.77%
More than 700 days to less than 36 months 5.50% 5.89% 6.00% 6.47%
36 months 5.95% 6.46% 6.45% 7.05%
More than 36 months to 60 months 5.95% 6.87% 6.45% 7.54%
More than 60 months to 120 months 5.95% 8.05% 6.45% 8.96%
Source: Bank Website, (with effect from 17th August, 2021)

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