Home >Money >Personal Finance >Check out banks offering highest rates on fixed deposits

Bank fixed deposits continue to remain popular among investors, especially senior citizens, who are looking for guaranteed returns. According to experts, fixed deposits may work better than debt funds in the short term.

Successive rate cuts by the Reserve Bank of India (RBI) and various liquidity easing measures have depressed yields in the short-term bond markets. Rate cuts get quickly incorporated in bond markets while banks are slower in cutting rates for their retail customers. This creates a slight advantage for investors in bank FDs. The yield minus the fund’s expense ratio is roughly the return that an investor will get

But overexposure to FDs is not good and you need to assess your asset allocation and goals to decide how much money you should park in them.

For Instance, saving for your child’s education that is 15 years away through FDs may not be effective as the post-tax interest rate of an FD may not give you a real return (return that is above inflation). But if you plan to take a holiday in two years, an FD can help.

Before choosing FD you should compare the interest rates on offer. Here is a list of banks that offer the highest FD rates for deposits up to 1 crore over various tenures.

Fixed deposit rates at various banks
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Fixed deposit rates at various banks
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