New Delhi, May 18 -- Bank fixed deposits are a preferred investment option for parking extra money, especially among risk-averse investors who are seeking stable and assured returns on their principle amount. As of May 2026, FD rates offered by major public and private lenders generally range between 6 and 7.25% per annum, with senior citizens usually receiving an additional 0.5% over the regular rates.

Meanwhile, NBFCs and small finance banks offer higher interest rates, up to 8.30% per annum for general depositors and as much as 8.80% for senior citizens. However, this yield comes with a trade-off in risk compared to traditional public-sector and major private banks.

If you are looking for alternative schemes that are not only backed ...