Check out FD rates of small finance banks

At a time when a few banks have reduced their fixed deposit (FD) interest rates, most small finance banks and a few private sector banks are still offering FD yields of 8% and above.

- SAIKAT NEOGI

Depositors having investible surpluses can book these high-yield FDs, preferably for longer tenures.

Splitting the FD portfolio across multiple banks and tenures can help balance safety and returns. Given the falling interest rate regime, individuals should lock into the highest available rates.

Santosh Agarwal, CEO, Paisabazaar, says opening FDs with multiple scheduled banks can help depositors ladder their deposits across various maturities, reducing their FD reinvestment risk. "The tenures of the highest FD slab rates usually vary across banks due to the variations in their Asset Liability Requirements," she says.