SBI FD vs PNB FD vs BOB FD: Which bank offers highest return on Rs 3 lakh, Rs 6 lakh, and Rs 9 lakh investments in 5 years?
A Fixed Deposit (FD) is a low-risk secure investment where you deposit a lump sum for a fixed tenure at a predetermined interest rate, earning higher returns than savings accounts.
SBI vs PNB vs BoB 5-year FD: A Fixed Deposit (FD) is a secure investment option that offers guaranteed returns, making it a popular choice across all age groups. You can invest in an FD for a tenure ranging from 7 days to 10 years. Public sector banks like State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BoB) provide a variety of FD schemes. With FDs, you invest a lump sum for a fixed period and earn interest, which is generally higher than savings accounts. Depending on your preference, you can receive interest payouts on a monthly, quarterly, or half-yearly basis.
In this article, we compare the returns offered by SBI, PNB, and BoB on Rs 3 lakh, Rs 6 lakh, and Rs 9 lakh investments for a five-year tenure to help you make an informed decision.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
Why to opt for FD?
A fixed deposit (FD) is a safe investment option that offers guaranteed returns, higher interest than savings accounts, and zero market risk, making it ideal for long-term savings.
Benefits of FD
- Guaranteed returns with fixed interest rates
- Higher interest than savings accounts
- Flexible tenure from 7 days to 10 years
- Loan facility available against FD
- Tax benefits under Section 80C for 5-year tax-saving FDs
- Additional interest benefits for senior citizens
When to start FD?
The best time to start an FD is when you have surplus funds that you don’t need immediately. It is ideal during high-interest rate periods for better returns.
SBI 5-year FD rate
SBI offers 6.50 per cent interest on a 5-year FD for general citizens, while senior citizens get 7.50 per cent.
BoB 5-year FD rate
Bank of Baroda provides 6.80 per cent interest on a 5-year FD for general citizens, with senior citizens earning 7.40 per cent.
PNB 5-year FD rate
Punjab National Bank gives 6.50 per cent interest on a 5-year FD for general citizens, with senior citizens getting 7.00 per cent.
SBI vs PNB vs BoB: Interest rate comparison
- For general citizens, Bank of Baroda offers the highest rate at 6.80 per cent, while SBI and PNB both offer 6.50 per cent.
- For senior citizens, SBI provides the highest rate at 7.50 per cent, followed by Bank of Baroda at 7.40 per cent and PNB at 7.00 per cent.
SBI 5-year FD: Maturity on Rs 3 lakh, Rs 6 lakh, and 9 Lakh investments
On an investment of Rs 3 lakh, the estimated maturity value is Rs 4,14,125.93, with interest earned at Rs 1,14,125.93.
On an investment of Rs 6 lakh, the estimated maturity value is Rs 8,28,251.86, generating interest of Rs 2,28,251.86.
On an investment of Rs 9 lakh, the estimated maturity value is Rs 12,42,377.80, with total interest earned at Rs 3,42,377.80.
BoB 5-year FD: Maturity on Rs 3 lakh, Rs 6 lakh, and Rs 9 lakh investments
On an investment of Rs 9 lakh, the estimated maturity value is Rs 12,60,844.61, with interest earned at Rs 3,60,844.61.
On an investment of Rs 6 lakh, the estimated maturity value is Rs 8,40,563.08, generating interest of Rs 2,40,563.08.
On an investment of Rs 3 lakh, the estimated maturity value is Rs 4,20,281.54, with total interest earned at Rs 1,20,281.54.
PNB 5-year FD: Maturity on Rs 3 lakh, Rs 6 lakh, and Rs 9 lakh investments
On an investment of Rs 3 lakh, the estimated maturity value is Rs 4,14,125.93, with interest earned at Rs 1,14,125.93.
On an investment of Rs 6 lakh, the estimated maturity value is Rs 8,28,251.86, generating interest of Rs 2,28,251.86.
On an investment of Rs 9 lakh, the estimated maturity value is Rs 12,42,377.80, with total interest earned at Rs 3,42,377.80.