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Bank Fixed Deposits That Still Offer Up To 8% p.a. Return

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With no liquidity crunch and extreme caution when it comes to lending despite RBI's lure, banks have been on a rate cut spree in line with back to back RBI's policy rate cut to its lowest ever repo rate of 4% now. The move comes to spur the economy and also to give a gear to credit growth.

 

Bank Fixed Deposits That Still Offer Up To 8% p.a. Return

FDs or fixed deposits also referred as term deposits as the sum remains locked with the bank for the pre-determined term as well as interest rate which is not the case in equity investment.

Rates on FDs have seen a serious collapse over time and the country's most trusted upon PSU bank SBI now offers 5.1% per annum return on FDs of up to Rs. 2 crore for 1 to less than 3 year tenure.

And in such times, when interest rate has been trending lower every other 15 days on deposits of different banks and it is being said some of the banks on their Fixed deposits are offering lower interest rate than bank savings account. Here are some of the FDs which still offer up to 8% return p.a. fromprivate and small finance bank space. And the matter argued in favour of investing in small finance bank is that they offer the same protection or deposit cover as that provided by PSU or other small sized private entities.

Depositors in these banks are also insured up to a maximum of Rs 5 lakh for both principal and interest amount held by them. So, even if banks get liquidated, investors' deposits up to Rs 5 lakh are safe.

Also another rationale being made for considering FDs with some allocation in SFBs is that they have a good non-performing assets portfolio.

1. DCB Bank FD rates

TenureDeposit rate per annum for deposits less than Rs. 2 croreRate for senior citizens
6 months to less than 12 months6.6%7.1%
1-2 years6.75%-7.2%7.25%-7.7%
2-3 years7.2%7.7%
3-5 years7.35%7.85%
More than 5 years to 10 years7.35%7.85%

These rates are applicable with effect from May 7 and the annualized yield goes as high as 10.72% for regular depositors.

 

2. Fincare Small Finance Bank

TenureDeposit rate per annum for deposits less than Rs. 2 crore with effect from June 5, 2020Rate for senior citizens
6 months to less than 12 months6.5%7.0%
1-2 years7.15-7.4%7.65-7.9%
2-3 years7.5%8%
36 months 1 day to 42 months7.6%8.1%
42 months to 48 months7.6%8.1%
48 months to 59 months7.75%8.25%
59 months 1 day to 66 months7%7.5%
66 months 1 day to 84 months7%7.5%

Also Read: Should you or not consider FD with Small Finance Bank

3. IDFC First Bank

TenureDeposit rate per annum for deposits less than Rs. 2 crore with effect from May 1, 2020Rate for senior citizens
6 months to less than 12 months7%7.5%
1 year to 499 days7.25%7.75%
500 days7.25%7.75%
501 days -2 years7.25%7.75%
2 years 1 day to 5 years7.25%7.75%
5 year 1 day to 10 years7.25%7.75%

GoodReturns.in

Read more about: fixed deposits
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