SBI vs Axis vs ICICI vs HDFC bank: Government and private sector banks have recently increased interest rates on loans as well as deposits especially on FDs. In banks FDs, the risk on the money of the investors is negligible.
If you want the option of fixed returns for the next 5 years in 2023, then FD of banks is a better option. Talking about the annual interest received on 5-year FDs of government and private sector big commercial banks SBI, Axis, HDFC Bank and ICICI Bank, it is up to 7% for regular customers and 7.75% for senior citizens.
This is a safe option for salaried employees. However, it is important to know that the return on maturity is taxable. Let us know how much interest SBI, Axis, HDFC Bank and ICICI Bank are offering on 5 year FD.
SBI: Interest on 5 year FD
SBI is offering 6.25 percent interest to regular customers on five-year fixed deposits (FD). For senior citizens, these rates are 7.25 percent. These interest rates are applicable from December 13, 2022 on deposits of less than Rs 2 crore.
Axis Bank: Interest on 5 year FD
Axis Bank is offering 7 percent interest to regular customers on five-year fixed deposits (FD). For senior citizens, these rates are 7.75 percent. These interest rates are applicable from 11 February 2023 on deposits of less than Rs 2 crore.
HDFC Bank: Interest on 5 year FD
HDFC Bank is offering 7 percent interest to regular customers on five-year fixed deposits (FD). For senior citizens, these rates are 7.50 percent. These interest rates are applicable from January 24, 2023 on deposits of less than Rs 2 crore.
ICICI Bank: Interest on 5 year FD
ICICI Bank is offering 7 percent interest to regular customers on five-year fixed deposits (FD). For senior citizens, these rates are 7.50 percent. These interest rates are applicable from December 16, 2022 on deposits of less than Rs 2 crore.
Tax exemption will be available on FD of 5 years
If you make FD of 5 years in any bank, then you get the benefit of tax exemption in section 80C. However, the interest earned on FD is taxable. In this, tax can be saved on investment up to a maximum of Rs 1.5 lakh in a financial year. It has a lock in period of 5 years. This period can extend up to 10 years.
(Note: FD interest rates have been taken from the official websites of banks.)
