5-Year FD Rates: Last year, the Reserve Bank of India (RBI) cut the repo rate by 125 basis points to 5.25%. This has made home loans, personal loans and other loans cheaper, but has led to lower returns for FD investors. Earlier, major banks used to offer FD interest rates of over 8%, but by early 2026, these rates have fallen to multi-year lows.
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Most major banks are offering interest rates of more than 7% to senior citizens. Here are the 5-year FD rates of top 5 banks (data as on December 5, 2025):
- SBI: General customers – 6.05%, Senior citizens – 7.05%
- PNB: General customers – 6.00%, Senior citizens – 6.80%
- Bank of Baroda: General customers – 6.00%, Senior citizens – 7.00%
- HDFC Bank: General customers – 6.15%, Senior citizens – 6.65%
- ICICI Bank: General customers – 6.60%, Senior citizens – 7.10%
In this comparison, ICICI Bank is offering the highest rates for both general customers and senior citizens.
Small Finance Banks (SFBs) offer higher FD interest rates. Some SFBs are offering interest rates of more than 8% to senior citizens. However, one should pay attention to safety and security.
- Safety in FD investment: Big banks are more secure
- RBI’s strict regulation
- FD insurance up to Rs. 5 lakh from DICGC
- Strong balance sheet and reliability
Government Support (D-SIBs):
Experts say that if the investment amount is large, it is better to make an FD within the limit of Rs 5 lakh in different banks.
Even though FD rates are likely to come down in 2026, 5-year FDs can yield returns of 6%-7.1%. ICICI Bank is offering the highest interest rate, but SBI and Bank of Baroda are safe options for senior citizens. If you want a higher interest rate on an FD, don’t forget to check the safety and DICGC limit.
Disclaimer: (The information provided here is for informational purposes only. Always seek expert advice before investing as an investor. Informalnewz.com never recommends investing here.)
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