The Finance Ministry has implemented new policies and tax regime for investors in Budget 2023, which will be effective from 1 April 2023. In such a situation, if you want more interest on the investment amount, then it may be better to invest before March 31, 2023.
However, by opting for the old tax regime, investors will get the benefit of tax saving as before. Investment experts are looking at investing in FDs as a better option, because banks have increased the interest rates on FDs to a great extent, which have crossed even 9 per cent. The trend of investors in FD is also increasing because there is no risk of sinking the amount invested in it and guaranteed returns are available.
Interest rate up to 9.01 percent on Fincare Small Finance Bank FD
Fincare Small Finance Bank is giving investors the opportunity to invest in FDs of tenure ranging from 7 days to 66 months. According to the bank, the bank is giving 8.11 percent interest rate to ordinary citizens on FDs maturing in 750 days. At the same time, 8.71 percent interest rate is being given to seniors on FD of 750 days.
Similarly, Fincare Small Finance Bank is giving an interest rate of 8.41% to ordinary citizens on FDs maturing in 1000 days. Whereas, the highest interest rate of 9.01 per cent has been offered to senior citizens on the same tenure. The bank’s FD interest rates have been made effective from 24 March.
9.50 percent interest rate on Unity Small Finance Bank FD
Unity Small Finance Bank is offering FD of tenure ranging from 7 days to 10 years to its customers. The bank has increased the interest rates on FDs of all tenures from 15 February. Unity Small Finance Bank is paying 9.25% interest to senior citizens and 8.75% to general customers on 181-201 days and 501 days fixed deposits.
Small Finance Bank is giving 9.00 percent interest rate to general customers on investment for 1001 days, while on the same tenure it has offered 9.50 percent interest rate to senior citizens. The interest rates of the bank were revised on 15 February.
Investing in small banks will not harm your money
Small Finance Banks (SFBs) are offering the highest interest rates ranging from 8 per cent to 9 per cent on Fixed Deposits (FD) to common citizens. At the same time, for seniors, these interest rates are being given up to 9.50 percent, which is the maximum.
Remember that deposits under small finance banks are also covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance. This means that your FD deposit amount up to Rs 5 lakh is covered under the insurance scheme. If the Small Finance Bank collapses or is placed under moratorium, then your money is not lost.