When it comes to long-term investments, fixed deposits (FDs) remain a popular choice among risk-averse individuals. Here’s a comparison of 5-year FDs offered by SBI and HDFC Bank to help you decide where your money could grow better.
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SBI 5-year FD
SBI offers fixed deposit interest rates ranging between 3.50% and 7.25% per annum for the general public and 4.00% to 7.75% per annum for senior citizens, with tenures ranging from 7 days to 10 years. The SBI Tax Saving FD offers a 6.50% annual interest rate for general depositors and 7.50% for senior citizens.
Additionally, SBI provides specialized FD products for NRIs, such as NRO, NRE, RFC, and FCNR (B) fixed deposits. FCNR (B) fixed deposits are accepted in multiple foreign currencies, including USD, GBP, Euro, CAD, AUD, and JPY, while RFC deposits are accepted in USD, Euro, and GBP.
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Returns on Rs 20 lakh investment over 5 years
- Invested amount: Rs 20,00,000
- Estimated returns: Rs 7,60,840
- Total value after 5 years: Rs 27,60,840
HDFC Bank 5-year FD
HDFC Bank provides fixed deposit interest rates ranging from 3.00% to 7.40% per annum for the general public and 3.50% to 7.90% per annum for senior citizens, across tenures of 7 days to 10 years. HDFC Bank’s Tax Saving FD offers a 7.00% annual interest rate for the general public and 7.50% for senior citizens for a 5-year tenure.
HDFC Bank also caters to NRIs with products like NRO, NRE, RFC, and FCNR fixed deposits. FCNR deposits can be opened in currencies such as USD, GBP, Euro, JPY, CAD, and AUD, while RFC deposits are available in USD, GBP, Euro, and JPY.
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Returns on Rs 20 lakh investment over 5 years
- Invested amount: Rs 20,00,000
- Estimated returns: Rs 8,29,556
- Total value after 5 years: Rs 28,29,556
Which FD offers better returns?
HDFC Bank’s 5-year FD offers higher estimated returns compared to SBI’s, with an additional Rs 68,716 in earnings on an investment of Rs 20 lakh. However, the choice between the two depends on individual preferences, liquidity needs, and any additional benefits offered by the respective banks. Investors should assess all factors before making a final decision.
