PNB 5-Year FD vs. HDFC Bank 5-Year FD: Fixed Deposits (FDs) are a preferred investment option for those looking for secure and predictable returns. If you’re considering investing Rs 25 lakh for five years, Punjab National Bank (PNB) and HDFC Bank are two well-known choices. Here’s a detailed comparison of their 5-year FD returns.

Punjab National Bank 5-Year FD: Interest rates and returns

PNB offers fixed deposit interest rates ranging from 3.50 per cent  to 7.25 per cent per annum for the general public and 4.00 per cent to 7.75 per cent per annum for senior citizens. For Tax Saving FDs, the interest rate ranges from 6.35 per cent to 6.50 per cent per annum for the general public and 6.85% to 7.00% for senior citizens.

The bank also provides various fixed deposit options for NRIs, such as NRO, NRE, and FCNR (B) deposits. FCNR (B) deposits can be held in multiple currencies, including US Dollars (USD), British Pound Sterling (GBP), Euro (EUR), Canadian Dollar (CAD), Japanese Yen (JPY), and Australian Dollar (AUD).

For a five-year tenure, PNB offers an interest rate of 6.50 per cent per annum. If you invest Rs 25 lakh, the estimated returns after five years would be approximately Rs 9,51,050. This means the total value of your FD after maturity would be Rs 34,51,050.

HDFC Bank 5-Year FD: Interest rates and returns

HDFC Bank provides FD interest rates between 3.00 per cent and 7.40 per cent per annum for the general public, while senior citizens receive rates between 3.50 per cent and 7.90 per cent per annum. The bank’s Tax Saving FD offers 7.00 per cent per annum for the general public and 7.50 per cent per annum for senior citizens.

Like PNB, HDFC Bank also offers fixed deposit products for NRIs, including NRO, NRE, RFC, and FCNR deposits. FCNR deposits can be maintained in multiple currencies such as USD, GBP, EUR, CAD, JPY, and AUD. RFC deposits are available in USD, GBP, EUR, and JPY.

For a five-year tenure, HDFC Bank offers an interest rate of 7.00 per cent per annum. If you invest Rs 25 lakh, the estimated returns after five years would be around Rs 10,36,950. This means the total value of your FD after maturity would be Rs 35,36,950.

Which fixed deposit option offers better returns?

Between PNB and HDFC Bank, HDFC Bank provides a higher interest rate of 7.00 per cent per annum compared to PNB’s 6.50 per cent. This results in higher returns, with an additional Rs 85,900 in earnings over five years.

However, apart from interest rates, factors like customer service, banking convenience, and other investment preferences should also be considered before making a final decision. Both banks offer reliable and secure investment options for those looking to grow their savings with minimal risk.