Mumbai – According to recent data released by the Reserve Bank of India (RBI) for the financial year 2022, investors continue to favor established public sector and private banks for fixed deposit (FD) investments, commanding a staggering 76 percent market share of total bank deposits.

Leading the pack among public sector banks is the State Bank of India (SBI), capturing 23 percent of total bank deposits across various tenures. Notably, SBI maintains a dominant 36 percent market share in term deposits among public sector banks. Following closely, Canara Bank and Union Bank of India are also preferred choices, each securing 7 percent of total bank deposits across tenures, with a combined market share of 23 percent in term deposits.

In the private banking sector, HDFC Bank emerges as the top choice for FD investments, amassing 8 percent of total bank deposits across tenures and holding a commendable 28 percent market share in term deposits among private banks. ICICI Bank and Axis Bank also feature prominently, capturing 6 percent and 5 percent of total bank deposits across tenures, respectively.

Further in the list, Bank of Baroda and Punjab National Bank each hold 6 percent of total bank deposits across tenures, securing a 10 percent market share in term deposits among public sector banks. Bank of India and Indian Bank are also noteworthy, both accounting for 4 percent of total bank deposits across tenures and collectively claiming a 6 percent market share in term deposits among public sector banks.

It's worth mentioning that despite smaller private and small finance banks offering higher interest rates to attract deposits, investors exhibit a strong preference for the stability and trust associated with these top banks. The Reserve Bank of India safeguards deposits in both public sector and private banks, with the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guaranteeing investments in fixed deposits of up to Rs 5 lakh.

For more financial insights and updates, follow Hiral Thanawala, a seasoned personal finance journalist with 9 years of reporting experience, based in Mumbai. Stay tuned for the latest in banking, finance, and personal planning.

*Tags: #bank fixed deposits #banking #fixed deposits #personal finance*