FD
Banks have started reducing interest on FDs since the Reserve Bank of India (RBI) cut the repo rate for the second consecutive time. All private and government banks have reduced interest on FDs. After this, investors who want to return without any risk have suffered a setback. However, it is not that the chance to get great returns on FD is still over. If you are thinking of getting FD, then you can turn to small finance bank. Many small finance banks are still offering more than 8% interest on FDs.
Interest rates on FD in Small Finance Bank
Ujjivan Small Finance Bank- Interest Rates: 8.25% to 8.75% per year Small Finance Bank- Interest Rates: 7.55% to 8.65% per year Equitas Small Finance Bank- Interest Rates: 8.05% to 8.55% per year AU Small Finance Bank- Interest Rate: 7.95% to 8.95% per year sunrise small Finance Bank- Interest Rates: 8.75% to 9.10% per year Utkarsh Small Finance Bank-interest rates: 8.50% to 9.10% per year
Investment of up to 5 lakhs is absolutely safe
You can get more interest in small finance bank (SFB). In the environment of cuts cut in current interest rates, small finance banks have emerged as an attractive option. Currently, many SFBs are offering more than 8% to general investors and more than 9% interest rate to senior citizens. However, for FD Karan in SFB you need to open a savings account, especially if you are investing directly through the bank. If it is a matter of risk, then these banks are regulated by RBI and fall under the DICGC insurance limit of Rs 5 lakh. That is, insurance cover is available at Rs 5 lakh. Even if the bank sinks, your money will be safe. So avoid keeping a large amount in a bank and keep your total risk within the insured limit.
FD in NBFC
The interest rate on FD in non-banking financial companies (NBFC) is 1–2% higher than normal banks. But like banks, DICGC is not insured on NBFC deposits. If you are ready to take more risk, you can invest in corporate deposits. However, you must compare the risk and returns of high interest FDs offered by corporate FD and small finance banks.
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