SBI vs HDFC Bank: If you’re seeking a straightforward and secure method to invest your funds, putting your money into a bank FD is the ideal choice. Bank FDs are quite favored by investors mainly due to their safety and assured returns. You can place your money in an FD with any private or public bank. Various banks provide different interest rates for their FDs across various tenures. Hence, it’s wise to choose an FD with a bank that offers higher interest rates.
Today, we will discuss the FDs provided by the largest public sector bank in the country, State Bank of India (SBI), and the largest private sector bank, HDFC Bank. Let’s find out which bank provides the best returns for an investment of Rs 5 lakh.
Return on investment of Rs 5 lakh in SBI FD
SBI’s 1-year FD has an interest rate of 6.25%. Therefore, if you invest Rs 5 lakh in this FD, you will get a total of Rs 5,31,990 at maturity.
SBI’s 2-year FD offers an interest rate of 6.45%. Thus, if you invest Rs 5 lakh in this FD, you will receive Rs 5,68,260 upon maturity.
SBI’s 3-year FD provides an interest rate of 6.30%. So, if you invest Rs 5 lakh in this FD, you will have a total of Rs 6,03,131 at maturity.
SBI’s 5-year FD has an interest rate of 6.05%. Therefore, if you invest Rs 5 lakh in this FD, you will receive Rs 6,75,088 upon maturity.
Return on investment of Rs 5 lakh in HDFC Bank FD
HDFC Bank’s 1-year FD offers an interest rate of 6.25%. So, if you invest Rs 5 lakh in this FD, you will receive a total of Rs 5,31,990 at maturity.
HDFC Bank’s 2-year FD has an interest rate of 6.45%. Thus, if you invest Rs 5 lakh in this FD, you will get Rs 5,68,260 upon maturity.
HDFC Bank’s 3-year FD offers an interest rate of 6.45%. Therefore, if you invest Rs 5 lakh in this FD, you will receive Rs 6,05,809 at maturity.
HDFC Bank’s 5-year FD has an interest rate of 6.40%. So, if you invest Rs 5 lakh in this FD, you will receive a total of Rs 6,86,822 upon maturity.
Other aspects regarding FD are also important
Both banks offer additional interest rate benefits for senior citizens, further improving their FD returns. However, before investing, consider not only the interest rate, but also the bank’s services, rules for premature FD termination, and tax implications. Banks often offer additional benefits under special schemes, so be sure to check the bank’s official website before investing.