The Post Office offers the highest interest rate of 7.5% on a 5-year FD, while major banks like SBI, HDFC, and PNB offer lower returns. For a safe investment, guaranteed returns, and long term, Post Office FDs are emerging as the most profitable option.
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Highest interest rate: If you’re looking for an investment option with safe and guaranteed returns, fixed deposits (FDs) remain the top choice for Indian investors. However, the Reserve Bank of India (RBI) has already cut the repo rate by a significant 1.00% this year, which is directly impacting bank FD interest rates. Yes, there are some options available in the market that still offer attractive returns—and the Post Office is leading the race.
A 5-Year FD is a Rain of Money!
Yes! While renowned banks like SBI, HDFC, and PNB are offering limited interest rates on their 5-year FDs, the Post Office is offering the highest interest rate of 7.5% on a 5-year term. Let’s understand in detail what interest rates are available and which option will be the best for your money.
Post Office – Highest 7.5% interest on 5-year FDs
The Post Office has always been a trusted place for safe investments.
Currently, the Post Office offers its customers a hefty 7.5% interest rate on 5-year FDs.
The most important thing is that customers of all age groups—general citizens, senior citizens, women, and youth—all receive the same interest rate.
State Bank of India (SBI) – Interest Rates 6.05% to 7.05%
SBI, the country’s largest public sector bank, offers 6.05% interest to general customers and 7.05% to senior citizens on its 5-year FDs.
-General customers: 6.05%
-Senior citizens: 7.05%
These rates are significantly lower than the Post Office. While SBI’s interest rates for senior citizens are relatively reasonable, they still don’t beat the Post Office’s 7.5% interest rate.
HDFC Bank – Interest Rates 6.40% to 6.90%
HDFC Bank, the country’s largest private bank by market cap, offers 5-year FDs:
6.40% for general customers
6.90% for senior citizens
While these rates are considered better in the private sector, they are still significantly lower than the Post Office’s 7.5% interest rate. If you’re looking for higher returns on your 5-year FD, the Post Office is a strong option here as well.
Punjab National Bank (PNB) – Interest rates ranging from 6.25% to 7.05%
PNB offers the following interest rates on its 5-year FDs:
General customers: 6.25%
Senior citizens: 6.75%
Super senior citizens (80+): 7.05%
This means that the bank is offering 7.05% interest to customers above 80 years of age. Despite this, the Post Office is ahead in this regard as the interest rate is the same at 7.5%, regardless of age.
Post Office still ranks No. 1—Why?
Highest interest rate – 7.5%
Consistent returns for all age groups
Government guarantee and 100% security
Steady interest rate for a long period
Post Office FDs are completely safe, as they are directly guaranteed by the Government of India. While only up to ₹5 lakh is covered under DICGC insurance in banks, the entire amount is considered completely safe in post offices.
Conclusion – Which is the best option for a 5-year FD?
If you are considering a 5-year FD and want to earn the maximum interest,
The Post Office is the top choice with a 7.5% interest rate.
Even major banks like SBI, PNB, and HDFC are offering lower interest rates.
