Fixed deposits (FD) remain a popular choice for conservative investors. They come with assured returns and give flexibility over the lock-in period. This allows investors to diversify their portfolio while safeguarding their wealth from market volatility.
While FDs returns may not seem very attractive, they are a reliable investment option. Many private banks tend to offer competitive rates with better service features. Small finance banks usually offer the highest FD interest rates to attract deposits. Public sector lenders may not offer higher returns, but they are considered safest due to reputation.
Overall, FDs suit those seeking predictable income and capital protection. But before investing, it is recommended to always check tenures, terms and return expectations. Comparing FD features of different lenders can help with a broader perspective, allowing investors to maximise their returns.
With the Reserve Bank of India keeping its repo rate unchanged at 5.25% in the April policy review, banks are unlikely to make any immediate changes to their FD rates. With no immediate prospect of increased returns, investors can compare the ongoing April rates if they wish to open new deposits.
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Here's what private, public and small finance banks are offering as FD rates for deposits under Rs 3 crore for tenures up to two years:
FD rates at private banks:
HDFC Bank - 6.25% for 1 Year to < 15 months
Axis Bank - 6.25% for 1 Year to 1 year and 10 days
ICICI Bank- 6.25% for 1 Year to < 18 Months
Kotak Mahindra Bank - 6.5% for 365 Days to less than 15 Months
IndusInd Bank - 6.75% for 1 Year to below 1 Year 6 Months
PSU Banks:
SBI - 6.25% for 1 Year to less than 2 years
Bank of Maharashtra - 6.15% for 1 year to 2 year
Bank of Baroda - 6.25% for above 1 year to 400 days
Punjab National Bank - 6.30% for above 1 year to 443 Days
Bank of India - 6.30% for above 1 year to less than 2 years (except 450 Days)
Small Finance Banks:
Suryoday Small Finance Bank - 7.25% for 1 year to less than 18 months
Jana Small Finance Bank - 7% for 271 Days - 365 Days
Utkarsh Small Finance Bank - 7.25% for 371 days to less than 2 years (729 Days)
Ujjivan Small Finance Bank - 7.25% for 12 months to < 24 months
Note: All interest rates have been taken from respective bank websites and are tentative in nature.
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