Want to invest in FD? Here're rates offered by small finance banks, others

1. Many risk-averse investors are looking at fixed deposits (FDs) as interest rates on them have started rising, and debt funds have remained volatile for over a year.

2. With small banks beginning to operate, one more avenue has opened up for risk-averse investors. Small banks are offering higher rates to increase their customer base.

3. Like other big banks, small banks, too, are governed by the Reserve Bank of India and are safe. But these banks are new and are yet to establish a track record. Deposits up to Rs 100,000 are covered by the Deposit Insurance and Credit Guarantee Corporation. 

4. The best option for investors is to spread their fixed deposits among post office, large banks, small banks and corporate FDs.

5. If you have Rs 100 to invest in FDs, restrict allocation to corporate FD and small banks at 25 per cent each. The remaining can be in post office time deposits and FDs of bigger banks.