Which Bank Is Best For Fixed Deposit For 5 Years?

According to bankbazaar.com

State Bank of I


Axis Bank

Yes Bank

Which bank is best for fixed deposit?

Best Fixed Deposit Interest Rates for Top Banks

BankBest Fixed Deposit Interest Rates* (p.a.) – 1 year3 years
IDFC First Bank8.00%7.50%
Bandhan Bank7.25%7.35%
Canara Bank6.50%6.25%

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Are 5 years FD tax free?

The amount invested in a tax-saving fixed deposit is eligible for tax exemption under Section 80C. This amount can be a maximum of Rs 1.5 lakh a year. Tax-saving fixed deposits have a lock-in period of 5 years. No premature withdrawals, loans or overdraft facilities are available against tax-saving FDs.

Which bank gives highest interest rate on FD in India?

The interest rate offered on the FD will depend on the period for which you are investing in the FD and also vary from bank to bank for FDs for the same tenure.

Bank NameInterest rate (%) compounded qtrlyWhat Rs 10,000 will grow into
IDFC First Bank8.0010824
RBL Bank7.6010782
Indusind Bank7.5010771

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How can I get maximum return from fixed deposit?

6 Steps To Earn More Money From Fixed Deposits

  • Open fixed deposits account online. You do get extra interest by opening an account online.
  • Look for company deposits.
  • Submit form 15g and 15h.
  • Apply for cumulative deposits.
  • Do not withdraw your deposits early.
  • Place deposit in the name of parents.

Which is better FD or RD?

As you can see, after a year you will receive Rs 26324 in a fixed deposit while in RD you will receive Rs 25195. So the recurring deposit earns you Rs 1039 less than a fixed deposit.. The primary reason for this difference is that in FD you invest a lumpsum amount and so the entire money earns interest for one year.

How much amount of FD is tax free?

2) The interest income from bank fixed deposit is fully taxable, unlike savings bank account where one gets income tax exemption on the interest earned up to Rs 10,000 in a year. In case of FDs, banks deduct tax at source (TDS) at the rate of 10 per cent if the interest income for the year is more than Rs 10,000.

How can I save TDS on FD interest?

If your interest income exceeds Rs 10,000 in a year, the bank will deduct 10 percent as TDS on the entire interest amount. If you have held the deposit for more than a year, you need to submit a fresh form 15 G/H each financial year.

How much amount of FD interest is tax free?

Senior citizens receiving interest income from FDs, savings account and recurring deposits can avail income tax exemption of up to Rs 50,000 annually. This is by way of an amendment vide Finance Act 2018.

Why fixed deposits are not good?

Lower return than inflation: FDs are not inflation protected and whenever the rate of inflation is above the FD interest rate, the deposits earn no real returns. Regular investments: As you need to put lump sum money in FDs, it is not suitable for people who want to make regular investments in small amounts.

How can I get high interest?

Join a credit union.

  1. Switch to a high-interest online savings account. Online banks have no branches, but they generally have lower fees and higher interest rates.
  2. Sign up for a high-yield checking account.
  3. Build a CD ladder.
  4. Join a credit union.

Can I get monthly interest on fixed deposit?

Interest paid on a fixed deposit is paid either monthly or quarterly according to the investor’s choice. So if you invest Rs 3 lakhs in a one year fixed deposit which pays 8 per cent you can earn Rs 2,000 of interest every month or Rs 6,000 of interest every quarter.