When considering a five-year fixed deposit (FD) for investment, Punjab National Bank (PNB) and HDFC Bank are two popular options. Here’s a comparison of their 5-year FD returns for an investment of Rs 25 lakh.
PNB offers FD interest rates ranging from 3.50% to 7.25% per annum for the general public and 4.00% to 7.75% for senior citizens. For a 5-year tenure, PNB offers an interest rate of 6.50% per annum, resulting in an estimated return of approximately Rs 9,51,050. The total value of the FD after maturity would be Rs 34,51,050.
HDFC Bank, on the other hand, provides FD interest rates between 3.00% and 7.40% per annum for the general public, and 3.50% to 7.90% for senior citizens. For a 5-year tenure, HDFC Bank offers an interest rate of 7.00% per annum, resulting in an estimated return of approximately Rs 10,36,950. The total value of the FD after maturity would be Rs 35,36,950.
Based on interest rates, HDFC Bank offers a higher return, with an additional Rs 85,900 in earnings over five years. However, other factors such as customer service, banking convenience, and investment preferences should also be considered when making a final decision. Both PNB and HDFC Bank offer reliable and secure investment options for those looking to grow their savings with minimal risk. Ultimately, the choice between the two banks depends on individual priorities and needs.