Best FD rates 2022: Amidst rising inflation, interest rates on loans and deposits are seen increasing. In recent times, along with increasing their lending rates, many banks have also increased the interest rates of fixed deposits i.e. FDs.
After this FD has become a bit more attractive for investors. If you want fixed returns in the next 5 years without taking any risk, then FDs of banks can be a better option. Investors also get the benefit of tax deduction on FDs of 5 years. Let us know how much interest the big commercial banks SBI, HDFC Bank and ICICI Bank are offering to regular and senior citizens on 5-year FDs.
SBI
SBI is offering 5.50 per cent interest annually on FDs of 5 years. For senior citizens, these rates are 6.30 percent. These interest rates are applicable on deposits of less than Rs 2 crore with effect from February 15, 2022.
BoB
Bank of Baroda is offering 5.35 percent interest annually on FDs of 5 years. For senior citizens, these rates are 6.00 percent. These interest rates are applicable on deposits of less than Rs 2 crore with effect from March 22, 2022.
HDFC Bank
HDFC Bank is giving 5.60 percent annual interest on FDs of 5 years. The interest rates for senior citizens are 6.10 percent. These interest rates are applicable from 18 May 2022 on deposits of less than Rs 2 crore.
ICICI Bank
ICICI Bank is offering 5.60 percent annual interest on FDs of 5 years. For senior citizens, this interest rate is 6.1 percent. Deposits of less than Rs 2 crore, these rates are applicable from 21 May 2022 2020.
Tax saving on 5 year FD
If you make FD for 5 years in any bank, then you get the benefit of tax exemption in section 80C. However, the interest earned from FD is taxable. In this, tax can be saved on investment up to a maximum of Rs 1.5 lakh in a financial year. It has a lock in period of 5 years. This period can extend up to 10 years. (Note: FD interest rates are taken from the official websites of banks.)
