Here is a look at 5 banks offering the highest interest rates on 5 year B FDs. Note that these are different from tax saving fixed deposits with a fixed tenure of 5 years.
5 Banks Offering Highest Interest Rates For FDs Of 5 Years
| Name of bank | 5 year | Qly Compound Return |
| indusind bank | 6.75 | 13974.99 |
| DCB Bank | 6.60 | 13872.27 |
| RBL Bank | 6.55 | 13838.20 |
| IDFC First Bank | 6.50 | 13804.20 |
| HDFC bank | 6.10 | 13535.05 |
Compiled by ETIG; Interest rates till September 15, 2022
Difference Between Cumulative and Non-Cumulative FD
There are two types of fixed deposits: cumulative and non-cumulative. According to the IDFCFirst Bank website, “In a cumulative fixed deposit scheme, no fixed interest is paid half-yearly or every year. Interest is compounded and paid after the period. For example, if you invest in a cumulative scheme of a financial firm at 10% interest, you will get the interest not regularly, but only after the duration of the scheme. Interest is compounded quarterly in a cumulative or reinvested fixed deposit. Later, the compounded income is reinvested along with the principal. The maturity period of cumulative fixed deposits ranges from six months to ten years.
interest on fixed deposit
According to SBI Bank’s website, “Interest on fixed deposits is payable to the depositor quarterly from the date of issue or along with the principal on maturity. But at the request of the depositor, for fixed deposits for a period of twelve months and above. In case interest can be paid at monthly, half-yearly or yearly intervals.