8% FD interest in traditional banks: Where will you get the best return — public sector or private banks?

Last Update Date: 06-10-2026

Published by The Economic Times

Abhishek Kumar's role: Quoted

Abhishek Kumar explained that banks were paying more on short-term deposits because depositors expected inflation to stay high in the near term, while over longer periods banks expected the repo rate to ease.

Written as bank fixed deposit rates touched 8% in 2023, the article compares FD rates at public and private sector banks across tenures. It explains why rates differ, why bank safety matters for large deposits, and how deposit insurance of up to ₹5 lakh per bank can shape where money is placed.

Publisher source

8% FD interest in traditional banks: Where will you get the best return — public sector or private banks?

Read the original article on The Economic Times (opens in a new tab)