Highest Interest Rates: Fixed Deposit (FD) is a very popular investment option among people in India due to its safety and guaranteed returns. Before investing in it, it is important to compare the FD rates of different banks and small finance banks. If you are thinking of making an FD these days, then for your convenience, here is a list of the top 5 banks offering the highest returns.
Small finance banks in India offer higher returns on FDs to their customers than major banks like State Bank of India, ICICI Bank and HDFC Bank. Here is a comparison of the top 5 small finance banks offering the best FD rates. You can take a look at this to earn good returns on your savings.
Equitas Small Finance Bank
Common people are getting 8.50% return on FD of 444 days in this bank and senior citizens are getting 8.77% return on FD of the same tenure.
Also read: Best FD Rates: Good opportunity to earn on 1 year FD, these banks are getting the highest interest, check the list before investing
North East Small Finance Bank (NESFB)
This small finance bank is giving its general customers 9.00% interest on FDs of 546 to 1111 days, 8.00% interest on FDs of 1112 to 1825 days. The bank is giving its senior citizens 9.50% return on FDs of 546 to 1111 days and 8.50% return on FDs of 1112 to 1825 days. These interest rates are applicable from 25 June 2024.
Suryoday Small Finance Bank
Common people are getting 8.60% annual interest on FDs of 2 years and 2 days in the bank. They can earn 8.65% return by keeping money in FDs of 2 years and 2 days. Apart from this, the bank is giving 8.60% return to its common customers on FDs of 2 years and 3 days to 3 years.
At the same time, senior citizens are getting 9.10% return on FDs of 2 years and 1 day, 9.10% on FDs of 2 years and 2 days, 9.10% on FDs of 2 years and 3 days to 3 years in this small finance bank. These rates on bank FDs for common people and senior citizens are applicable from 4 September 2024.
Unity Small Finance Bank
In this small finance bank, common people are getting 9 percent annual return on FD of 1001 days. By keeping money in FD of 701 days and 501 days of this bank, investors can avail the benefit of 8.75 percent annual interest rate. Apart from this, the bank is offering 8.50 percent return on FD of 6 months to 201 days.
This small finance bank is offering its senior citizens 9.00% return on FDs of 6 months to 201 days, 9.25% on FDs of 501 days and 701 days and 9.50% on FDs of 1001 days. These interest rates are applicable from 8 July 2024.
Utkarsh Small Finance Bank
The bank is giving 8.50% annual return to the common people on FDs of 2 years to 3 years and 1500 days. The bank is giving 9.10% annual return to its senior citizens on FDs of the same tenure.
North East Small Finance Bank and Unity Small Finance Bank included in the list are giving the highest returns on FDs to their general customers. At the same time, both these small finance banks are offering 9.50 percent annual return on senior citizen FDs. You can see the details in the list here.
| Name of Small Finance Bank | FD Rates (for common people) | FD Rates (for Senior Citizens) | Tenure |
| Equitas Small Finance Bank | 8.50 | 9.00 | 444 days |
| Northeast Small Finance Bank | 9.00 | 9.50 | 546 days to 1111 days |
| Suryoday Small Finance Bank | 8.65 | 9.10 | Above 2 years to 3 years |
| Unity Small Finance Bank | 9.00 | 9.50 | 1001 days |
| Utkarsh Small Finance Bank | 8.50 | 9.10 | 2 years to 3 years; 1500 days |
Why are you getting the highest interest in Small Finance Bank
Small Finance Banks are known for giving loans of small ticket size. Usually, many customers who are unable to get loans from major banks, turn to Small Finance Banks. Small Finance Banks keep some lenient norms for loans and due to this, they give loans even to those people who have been refused by major banks. But in return, they charge higher interest.
Due to higher interest in loan business, banks attract customers by giving higher interest on FDs. The advantage of this is that the more FDs there are, the more deposits the bank has and they can easily operate the loan business as well.
Also read : PPF: If you deposit Rs 12500 monthly in PPF, then a big fund will be formed on maturity, full calculation
Is there any risk in depositing it?
Small finance banks are also licensed and regulated by the bank regulator Reserve Bank of India and are monitored by the regulator. Therefore, it cannot be said that there is a deposit risk in them. However, there are some customers whose credit history is not known. In such cases, there is a risk of loan default, but this risk is limited due to the low ticket size.
It is better to check the structure and customer base of the banks before making an FD. Check their financials, check their default history. Also find out the status of the bank’s non-performing assets (NPA). Do check the rating of their schemes by credit agencies.
