Bank fixed deposits (FDs) contonue to be popular investment products not just for senior citizens, who are looking for guaranteed income, but also among investors who cant stomatch risk.
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 higher education that’s 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’s above the rate of inflation). But if you plan to take a holiday in two years, an FD can help.
Also Read : Life insurance gimmicks: How insurance companies trick policyholders with exit barriers?
Before choosing an 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.
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Updated: 18 Oct 2023, 09:49 AM IST