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

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.

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

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

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

3. IDFC First Bank

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