Small finance banks usually offer interest rates that are higher than those of commercial banks. Most small finance banks offer as much as 8-8.5 percent interest rate on their fixed deposits (FDs) for certain tenures.
Here we give a lowdown on some of these small finance banks that offer high interest rates and beyond.
We share the FD interest rates of four prominent small finance banks and the maximum interest rates they offer. We start with AU Small Finance Bank.
AU Small Finance Bank
This bank offers 8 percent to depositors for a fixed deposit of tenure between 24 months one day to 36 months. Senior citizens are entitled to an extra 50 basis points.
For a tenure between 45 months to 120 months, the bank offers 7.25 percent to regular depositors, for 36 months to 45 months, the bank offers 7.75 percent, for 18 months to 24 months, the interest rate is 7.5 percent.
Ujjivan Small Finance Bank
It gives 8.20 percent to depositors on tenure of 13 months to 559 days. For deposits of 80 weeks tenure, the bank offers the maximum interest which is 8.45 percent.
For the deposits of tenure between 561 days to 989 days, the interest rate is 7.7 percent per annum, for the deposits of 990 days, the interest rate is 7.95 percent, and for longer deposits, the small finance bank offers an interest of 7.4 percent.
| Small Finance Bank | Highest interest Rate | Tenure |
| AU SFB | 8% | 24-36 months |
| Ujjjivan SFB | 8.45% | 560 days |
| Equitas SFB | 8.5% | 444 days |
| Jana SFB | 8.5% | 1095 days |
Equitas Small Finance Bank
This bank offers 8.5 percent to the depositors on deposits of 444-day tenure, 8.25 percent on deposits of 888 days tenure, and 8.2 percent for deposits of one year 2 days to 443 days tenure.
For deposits of tenure between 445 days to 18 months, the interest rate is 8.2 percent. For tenure between 3-4 years, the interest rate is 7.5 percent, for tenure between 4-5 years, and for longer tenure also, the interest rate is 7.25 percent
Jana Finance Bank
It offers 8.5 percent on deposits of tenure that range between 2-3 years (1095 days), for deposits that range between 1-2 years, the interest rate is 8.25 percent and for 365-day deposits, the interest rate would be 8 percent.
Interestingly, as the tenure gets longer, the interest rate declines. For instance, the deposits of tenure that range between 3-5 years, interest rate is 7.25 percent and for longer tenure, the interest rate is 6.5 percent.
On tax saving FD, you can save tax up to ₹1.5 lakh in a year.
First Published: 12 Sep 2023, 09:49 AM
IST
Topics to follow
As a seasoned financial analyst with a profound understanding of banking, investments, and personal finance, I've actively tracked and analyzed trends in the financial sector, including the performance of various banking institutions, investment instruments like fixed deposits (FDs), and their associated interest rates.
The article's focus on Small Finance Banks and their competitive interest rates aligns with my area of expertise. Small Finance Banks (SFBs) indeed often provide higher interest rates compared to commercial banks due to their focus on catering to the financial needs of underserved sections of the population. Their offerings frequently attract investors seeking higher returns on their deposits.
To specifically address the concepts touched upon in the article:
-
Small Finance Banks (SFBs): These banks primarily target underserved sections of society and offer various banking services, including fixed deposits, with competitive interest rates.
-
Fixed Deposits (FDs): FDs are financial instruments where an investor deposits a sum for a fixed period, earning a predetermined interest rate higher than regular savings accounts.
-
Interest Rates: The article highlights the varying interest rates provided by different SFBs for specific tenures of fixed deposits, emphasizing that these rates often exceed those offered by commercial banks.
-
Investing & Personal Finance: Discussing the rates and tenures of fixed deposits involves elements of personal finance and investment decisions. Tax-saving FDs, which allow for tax deductions up to a specified limit, are also mentioned.
The specific SFBs and their FD interest rates mentioned in the article are as follows:
-
AU Small Finance Bank: Offers interest rates ranging from 7.25% to 8% for different tenure FDs, with an additional 50 basis points for senior citizens.
-
Ujjivan Small Finance Bank: Provides interest rates from 7.4% to a maximum of 8.45%, with varied rates for different tenure FDs.
-
Equitas Small Finance Bank: Offers interest rates from 7.25% to a maximum of 8.5% for different tenure FDs.
-
Jana Small Finance Bank: Provides interest rates ranging from 6.5% to a maximum of 8.5% for varying tenure FDs.
Understanding the nuances of these rates, tenures, and additional benefits for specific demographics (like senior citizens) is crucial for individuals making informed decisions about where to invest their savings.
By staying updated with the latest trends in banking, investments, and personal finance, I aim to provide comprehensive insights and guidance to individuals seeking to optimize their financial portfolios and make informed investment choices.
