![]() ![]() How safe are FDs in small finance banks and private banks ![]() Hence, those wishing to earn higher interest rates on their bank fixed deposits can consider opening FDs with such small finance and private sector banks,” says Sahil Arora, Director & Group Head-Investments,. “The highest FD rates offered by some of the small finance banks and a few private sector banks are about 200-300 bps higher than those offered by PSU banks and most private sector banks. In fact, some of them are still offering interest rates as high as 9 per cent. However, that is not the case with all the banks. It is true that a majority of banks are currently offering lower interest rates on their FDs. How and where to get higher returns on FDs In the history of modern India, no customer has lost his deposit with an Indian bank,” says Adhil Shetty, CEO,. If your bank were to undergo a moratorium or corrective action, you may not be able to withdraw your deposits for a period of time determined by the RBI. Therefore, due to lower risks, those banks provide lower returns. Risks are lower at the bigger and more established banks for a variety of reasons such as low NPAs. To get higher rewards, you must take higher risks. “It needs to be understood that all forms of savings and investments carry risks. Your Money: Rate cuts coming, but how soon? ![]()
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