Since May 2022, the Reserve Bank of India (RBI) has raised the repo rate by 250 basis points (bps), making fixed deposits once again a desirable investment for investors in fixed income. Investors can receive returns on their investments of more than 9% while still receiving DICGC coverage since fixed deposit interest rates are on the rise. Yes, you heard it right, a select few small finance banks (SFBs) are giving their customers returns on fixed deposits (FDs) of over 9%, which is not only significantly higher than those offered by public and private sector banks but also by small savings schemes.
