Due to the ongoing tensions in the Middle East, the stock market is not performing well today.
This has made many investors nervous.
In such uncertain times, safe investment options become more important.
Experts often suggest maintaining a balanced portfolio with both risky and safe investments.
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Why Fixed Deposits Are Still Popular
Safe options like fixed deposits (FDs) are trusted because they offer guaranteed returns and carry very low risk.
Banks provide fixed interest rates, so your money grows steadily without market fluctuations.
Let’s look at which banks are currently offering the best returns on 5-year FDs.
Top Banks Offering Best 5-Year FD Returns
Here are the interest rates offered by major banks:
ICICI Bank – 6.50%
Axis Bank – 6.45%
HDFC Bank – 6.40%
Punjab National Bank – 6.10%
State Bank of India – 6.05%
Union Bank of India – 6.00%
Among these, ICICI Bank is offering the highest return of 6.50% on a 5-year FD.
Small Finance Banks Offer Higher Returns
Small finance banks are known to offer higher interest rates compared to big banks.
Here are some of the top rates:
AU Small Finance Bank – 6.75%
Equitas Small Finance Bank – 7.00%
ESAF Small Finance Bank – 5.75%
Jana Small Finance Bank – 7.77%
Shivalik Small Finance Bank – 6.25%
Slice Small Finance Bank – 7.00%
Suryoday Small Finance Bank – 7.90%
Ujjivan Small Finance Bank – 7.20%
Utkarsh Small Finance Bank – 7.00%
Among these, Suryoday Small Finance Bank is offering the highest interest rate of 7.90% on a 5-year FD.
How Much Can You Earn?
If you invest in a 5-year FD with ICICI Bank twice, your total return can go up to around 13%.
On the other hand, if you invest in Suryoday Small Finance Bank twice for 5 years, your return can reach up to 15.8%.
Final Takeaway
In times of market uncertainty, fixed deposits remain a safe and stable investment option.
While big banks offer reliability, small finance banks provide higher returns.
Investors should choose based on their risk comfort and financial goals.