November 30, 2025 · 9 mins read
Santosh Kumar
There is no age to start investment. In India there are many types of investments, including mutual funds, stocks, real estate, and traditional investments like recurring deposits and fixed deposits. Conventional investments like fixed deposits (FDs) and recurring deposits (RDs) are backed by the government and provide greater transparency and greater returns compared to savings account.
Fixed deposits are the best and safest ways to maximize our financial growth. A fixed deposit is a key investment product where a lump sum is deposited at a fixed rate of interest and fixed tenure by various financial companies. Fixed deposits are unaffected by market fluctuations, hence they give guaranteed returns. Fixed deposits usually have higher rates of interest for senior citizens and women.
Recent data suggests that on average each Indian house has approximately Rs. 4.25 lakh in fixed deposits. Fixed deposits can be opened by visiting the bank branch or online by using the financial institution’s website or app. Digital FDs are preferred over traditional FDs, as they are paperless and instant and may offer higher interest rates with minimum investment compared to traditional FDs.
In India various FDs are offered by various banks and NBFCs (non-banking financial companies), post offices, etc. The main differences in these fixed deposit schemes are the FD interest rates that they offer, tenure, regulation, risk factors, etc. Different financial institutions may have different interest rates for women, senior citizens, etc.
In general, NBFCs like Shriram Finance, LIC Housing Finance, etc., offer FD rates more than banks like State Bank of India, IDFC First Bank, etc. With regard to risk tolerances, commercial bank FDs offer much less risks compared to NBFCs but investors can expect higher returns in NBFC FD compared to bank FDs.
With so many investment options and so many things to keep in mind, investors may have several questions regarding which is the best FD plan for 5 years investment.
As different people have different investment goals, when deciding the best FD plan for 5 years investment, several factors to consider are the FD tenure, FD rates, FD investment strategies, and FD returns. Some of these fixed deposit plans also come with tax saver plans. It is advised to consult various online bank websites or consult a qualified financial advisor before taking a decision.
Given below are some of the best FD plans for 5 years investment.
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SBM ZET credit cards offer the dual benefits of having a credit card as well as fixed deposits. ZET credit cards can be considered as one of the best fixed deposit credit cards in India. ZET credit cards, as they are backed by fixed deposits (FDs), do not require specific proof of income or credit history. The fixed deposits act as the collateral for the credit cards. The credit limit for ZET credit cards is automatically set at up to 90% of the fixed deposit amount. As the fixed deposit amount increases, the credit limit also increases. SBM ZET credit cards have 100% approval chances, and they are lifetime free, meaning no annual charges or joining charges.
ZET credit cards can be used both online and offline. SBM ZET credit cards can be used for all major online shopping sites, from groceries to medicines to fashion and lifestyle, food, and entertainment. Every time investors use ZET credit cards for their transactions, they get cashbacks and rewards, which they can in turn add to their ZET fixed deposit credit cards and earn more interest. Thus, investors can earn interest from their fixed deposits as well as increase their creditworthiness in no time.
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One of the leading banking networks in India, HDFC Bank, has the best FD Plan for 5 years Investment in popular banks. HDFC Bank gives the option of both standard 5-year FD as well as 5-year tax saver FD. The interest rates for both FDs are 6.40% p.a. for regular citizens and as high as 6.90% p.a. for senior citizens. The 5-year tax saver FD comes with a 5-year lock-in period. Fixed deposits are also accepted in dollars, euros, Japanese yen, etc.
Other leading Indian banks like Axis Bank also offer various fixed deposit schemes like Domestic Fixed Deposits, Domestic Fixed Deposits Plus, NRI Fixed Deposits, etc. Some other fixed deposit schemes that offer higher FD interest rates are Dhanlaxmi Bank FD and Jammu & Kashmir Bank FD which give higher FD interest rates of 6.60% for the general public and 7.10% p.a. for senior citizens. SBM Bank FD has the highest interest rate of 7% for general citizens, followed by Yes Bank FD at 6.75% p.a. and RBL Bank FD at 6.70% FD for regular citizens and 7.20% p.a. for senior citizens.
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PNB Housing Finance FD is clearly one of the winners in the Best FD Plan for 5 years investment in Non-Banking Financial Categories. PNB Housing Finance FD offers cumulative interest rates as high as 7.10% p.a. for general citizens and 7.35% p.a. for senior citizens.
One of the other leading NBFCs in India, Shriram Finance offers both cumulative and non-cumulative schemes for fixed deposits. The minimum deposit for Shriram Finance FD is Rs 5000 and interest rates are high at 8.15% p.a., including various benefits for women and senior citizens. Shriram Finance also is credited with the highest safety rating, which makes it a secure, reliable, as well as popular choice among people.
Other popular NBFCs, including Bajaj Finance, LIC Housing Finance, also provide the best FD plans for 5 years investment. It is recommended to go through all of the plans in detail, depending on the financial status and financial goals of the investors.
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When it comes to best FD plan for 5 years investment, small finance banks are not behind, as they give much higher interest rates compared to traditional and commercial banks.
Suryoday Small Finance Bank has FD interest rates for five years of 8.05% p.a. for regular citizens with additional interest rates of 0.05 to 0.20% p.a. for senior citizens. Jana Small Finance Bank also has 5 year FD rate as high as 8% p.a. for general citizens. Ujjivan Small Finance Bank, Bandhan Bank also offer competitive 5 year FD rates to their customers with other attractive benefits.
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Fixed deposits (FDs) are the best ways of growing our hard-earned money with the least risks and the least maintenance but assured returns. More and more people are opting to invest in fixed deposits, as they have flexible tenures, higher interest, and greater liquidity, meaning partial withdrawals of FDs are possible. However, many investors prefer to avail loans against FDs instead of breaking the FDs and thereby suffering losses.
Since many banks, non-banking financial companies, etc. have different FD plans, it may be confusing for investors to decide which is the best FD plan for 5 years investment.
The best FD plan for 5 years investment depends on the current financial status and short-term and long-term financial goals of the investor. It is advisable to invest in fixed deposits for longer terms like 5 years or 10 years, to get the maximum growth. Some fixed deposits do come with tax-saving benefits as well as insurance coverage. Some fixed deposits also have the options of cumulative FDs, where interest is compounded and paid at maturity, as well as non-cumulative FDs, where interest is paid out periodically.
There are many fixed deposit plans depending on the amount to be invested, tenure, rate of interest, etc. Various banks, both big and small, non-banking financial companies, etc., do provide various FD schemes with lucrative interest rates and various other benefits.
Yes, the rate of interest for a fixed deposit remains constant till its maturity, it does not change. Once the FD is opened, the rate of interest is fixed till the FD is mature.
The minimum amount required to open an FD in most banks varies from Rs 5000 to Rs 10000, though some small finance banks give the option of opening an FD with an amount as low as Rs 1000.
Fixed deposits are one of the safest investment plans with guaranteed returns. Investors can have more than one FD in the same or different banks or different financial institutions.
Yes, most FD schemes allow premature withdrawal of FDs with some penalty and lower interest rates on the remaining FD amount. A wise financial decision would be to avail a loan against the FD rather than breaking the FD prematurely.
The minimum duration for an FD is 7 days, and the maximum duration is 10 years. It is suggested to keep the FDs for longer tenure with longer lock in period, as longer tenure assures maximum returns.
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