FD News – If you are also planning to get FD, then this news is for you. Actually today we are going to tell you in this news that only this much money will be returned if the bank goes bankrupt.
Fixed Deposit (FD) is generally considered to be the safest mode of investment in the country. Currently, many banks are paying more interest on FDs than the government’s small savings schemes. Due to the attraction of higher returns (interest), the trend of people has increased towards FD. However, getting FDs in banks is not completely safe. Especially in co-operative banks. Depositing your money in these carries more risk than commercial banks (private and government banks).
Eight urban cooperative banks were declared bankrupt during 2021 and 2022. The money of the depositors of these banks was at risk. After this RBI came forward and settled the claims under deposit insurance. Also, from the perspective of Silicon Valley Bank, one cannot ignore the risk on FDs. Especially in relation to co-operative banks. Hence, these banks offer higher returns to the depositors.
08 urban cooperative banks were bankrupt in 2021 and 22.
Only up to five lakh rupees is safe-
Co-operative banks or small finance banks give more interest to their depositors than commercial banks, but there is also a danger of drowning the money deposited there. In view of this, RBI fixed the deposit insurance limit of 5 lakhs to save the hard earned money of the depositors. If you have deposited Rs 10 lakh in a co-operative bank and it becomes insolvent, then you will get only Rs 5 lakh under deposit insurance.
Getting the highest interest here-
BankBazaar has prepared a report on the returns on FDs in 12 government, 21 private, 12 small finance, 13 foreign and 10 largest urban cooperative banks. Accordingly, all public sector banks are currently paying 7.35 per cent or less interest.
29 banks are offering 8 percent or more interest rate.
- Two private banks are giving around 8 per cent interest to their depositors.
- Two small finance banks are giving 9% interest on FD.
Don’t change bank just because of high returns-
Avoid changing your existing bank just because of high returns on FD, as most of the banks ask to open savings account before doing FD. A minimum amount will have to be kept in a low-return savings account in the new bank. This will reduce the high returns you were supposed to get from the FD. With another bank account you will have to pay various charges. So, it would be better to stick with the existing bank only.
