Pls suggest which bank FD is safe?
Many investors, especially first-timers, often wonder about this. I had the same question myself. I always recommend starting with the safest check: verifying the DICGC insurance coverage.
The DICGC, or the Deposit Insurance and Credit Guarantee Corporation, is a subsidiary of the Reserve Bank of India (RBI). It protects your FD investments in case a bank fails to provide you returns or goes bankrupt.
Let me walk you through how the DICGC helps determine which bank FD is safe:
- DICGC insures your FD investment amount (principal + interest) up to ₹5 lakh.
- Be it a large commercial or a small finance, regional or rural banks, DICGC covers most of them.
- You get one DICGC insurance per bank, which protects all your combined FDs in that institution under the specified limit of ₹5 lakh.
That being said, always choose a bank with DICGC coverage and avoid those without it to keep your investment insured. Here I give you a list of some DICGC-insured institutions:
- The State Bank of India
- Central Bank of India
- Utkarsh Small Finance Bank Limited
- Bank of Baroda
- Punjab National Bank
- Union Bank of India
- Ujjivan Small Finance Bank Limited
- IndusInd Bank Limited
- Suryoday Small Finance Bank Limited
- Shivalik Small Finance Bank Limited