Fixed deposit: Top 10 banks where investors prefer to park their money
According to data released by the RBI, there are seven public sector banks and three private banks, which put together, have a 76 percent market share in bank fixed deposits.
Where do investors park their money in fixed deposits? According to the Reserve Bank of India's financial year 2022 data, seven public sector banks and three private banks with 76 percent of total bank deposits. Investors prefer to invest in leading public sector banks and private banks. This is despite smaller private banks and small finance banks offering higher interest rates to garner newer deposits. BankBazaar compiled the data.
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The State Bank of India (SBI) is the most preferred bank to invest across FD tenures by the investors. It has 23 percent of total bank deposits across tenures. Among the public sector banks, it has 36 percent of market share in term deposits.
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In private banks, HDFC Bank is the most preferred bank to invest across FD tenures by the investors. It’s the second bank with 8 percent of total bank deposits across tenures. Among the private banks, it has 28 percent of market share in term deposits.
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In public sector banks after SBI, investors preferred to invest in Canara Bank and Union Bank of India. They both have 7 percent of total bank deposits across tenures. Among the public sector banks, Canara bank and Union Bank of India, they have a market share of 12 percent and 11 percent, respectively, in term deposits.
Then, the Bank of Baroda and Punjab National Bank both have 6 percent of total bank deposits across tenures. Among the public sector banks, the Bank of Baroda and Punjab National Bank, they both have a market share of 10 percent in term deposits.
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Among private banks after HDFC Bank, investors preferred to invest in ICICI Bank FDs. It has 6 percent of total bank deposits across tenures and 19 percent of market share among the private banks in term deposits.
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Axis Bank is the third private bank in the top ten list of banks investors prefer to invest in FDs. It has 5 percent of total bank deposits across tenures and 15 percent of market share among the private banks in term deposits.
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Last two banks in the top ten list of banks investors prefer to invest in FDs are Bank of India and Indian Bank. They both have 4 percent of total bank deposits across tenures. Among the public sector banks, they both have a market share of 6 percent in term deposits.
The central bank secures deposits in public sector banks and private banks. The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in fixed deposits of up to Rs 5 lakh.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
