Many investors prefer putting their money in fixed deposits (FDs) offered by leading public and private banks, accounting for 76 percent of total bank deposits, as per Reserve Bank of India data.
Despite smaller banks providing higher rates, major public and private banks remain popular due to their security. Bank of Baroda is currently leading the race with highest ever FD returns at 7.25% p.a.
Other contenders include Punjab National Bank (7 percent), Canara Bank (6.8 percent), SBI, Union Bank of India, Bank of India, and Indian Overseas Bank (6.5 percent), UCO Bank (6.3 percent), Indian Bank (6.25 percent), and Bank of Maharashtra and Punjab & Sind Bank (6 percent). Remember, the Deposit Insurance and Credit Guarantee Corporation (DICGC) secures FD investments up to Rs 5 lakh.