Bank fixed deposits (FDs) are a preferred choice among investors seeking stability and security. These investments are deemed secure due to guaranteed returns.
Read More: What Is 7-5-3-1 Rule In Mutual Fund SIP Investment? Explained
If a bank fails to pay back the deposit, there is insurance coverage of up to Rs 5 lakh that the Deposit Insurance and Credit Guarantee Corporation Limited (DICGC) provides.
Several banks, such as Kotak Mahindra Bank, HDFC Bank, Axis Bank, ICICI Bank, State Bank of India, Punjab National Bank, IDFC First Bank, Yes Bank, Punjab & Sind Bank, RBL Bank and DCB Bank provide competitive FD rates.
Investors need to note that banks have the authority to alter FD interest rates at any given time. Hence, one must stay informed about current FD rates before making investments.
RBL Bank offers an interest rate of 8.10% for deposits ranging from 546 days to 24 months. Meanwhile, DCB Bank offers an interest rate of 8% for deposits lasting from 25 months to 26 months.
IndusInd Bank offers an interest rate of 7.75% for different periods: 1 Year to below 1 Year 6 Months, 1 Year 6 Months to below 1 Year 7 Months and 1 Year 7 Months up to 2 Years.
IDFC First Bank provides an interest rate of 7.75% for deposits lasting from 549 days to 2 years. Yes Bank offers an interest rate of 7.75% for deposits between 18 months and less than 24 months.
Read More: NPS Overhaul In Maharashtra: Game-Changing Scheme Announced For State Employees – Details
Punjab National Bank offers an interest rate of 7.25% for deposits lasting 400 days. Bank of Baroda provides an interest rate of 7.25% for deposits above 2 years and up to 3 years.
Punjab and Sindh Bank offer a 7.40 per cent interest rate for 444 days. Kotak Mahindra Bank offers interest rates ranging from 2.75% to 7.40% for the general category for 390 days and less than 23 months.
HDFC Bank offers an interest rate of 7.25 per cent for 18 months and up to 21 months. ICICI Bank offers a 7.20 per cent interest rate for 15 months and up to 18 months
ICICI Bank offers a 7.20 per cent interest rate for 18 months until 2 yearsAxis Bank provides 7.20 per cent for 17 months and < 18 months
SBI offers 7 per cent for 2 years to less than 3 years
Bank Deposits Insured up to Rs 5 Lakh
Bank customers should be aware that in case of a bank default or bankruptcy, their deposits are insured up to Rs 5 lakh.
Read More: LIC Index Plus Policy: Check Eligibility, Benefits And Other Details
This insurance coverage is facilitated by DICGC, a company wholly owned by the Reserve Bank of India (RBI), responsible for insuring banks nationwide.
