Who is offering best fixed deposit rates?

While it is okay to hunt for banks that offer higher rates, the safety aspect is equally important.

After a long time, fixed deposit Investors received happy tidings when the State Bank of India raised its rates last month. Small finance banks, however, are offering better rates.

Before investing, keep these in mind:

• While it is okay to hunt for banks that offer higher rates, the safety aspect is equally important.
• FDs from co-operative banks, for instance, may offer higher returns, but they are not as safe as commercial banks.
• Spreading your FDs across banks -- some riskier, some less so -- can help to mitigate risk.
• Investors in the 20 and 30 per cent tax bracket should calculate the post-tax return.
• For them, debt mutual funds, tax-free bonds, etc may be better options

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