Bank FDs offer a certainty of income, but once the interest accrues, you have to pay tax and then reinvest the proceeds immediately, if you don’t need it. Debt funds help prevent such leakages.
But so far, two small finance banks are providing the highest FD rate in the nation. For deposits with a 700-day tenor, Utkarsh Small Finance Bank (SFB) is now giving a maximum interest rate of 8.25% for the general public and 9.00% for elderly individuals.