Here are banks offering the highest 5-year fixed deposit interest rates.
Keep in mind that not all FD tenures have the same interest rate when making an investment. Even if you select the option with the longest term, the interest rate may not be the highest. Select the tenure that offers you the highest interest rate using the compound interest calculation.
Leverage the Power of Compounding
According to the
, “An excellent hack to earn more using an FD is to earn interest on interest! How? By choosing the cumulative FD plan. While a non-cumulative fixed deposit pays you regular returns, the cumulative option allows you to accumulate the interest amount and re-invest it with your principal amount. Therefore, you earn even more on your deposits, which can grow into a substantial amount over the long term.”