Bank Best FD Rates : You can get 9 to 9.50 percent annual interest in Fixed Deposit. Many banks are offering high interest rates on FD. While common people are getting 8.65 percent to 9 percent annual interest, senior citizens i.e. investors above 60 years of age are getting 9 to 9.50 percent annual interest. At present, there are at least 8 such small finance banks, in which maximum 9 to 9.50 percent interest is being given. In such a situation, you have a good chance to lock this high interest rate.
Apart from major banks and post offices, small finance banks also provide the facility of fixed deposits. Fixed deposits are a safe option for investment where interest is received as per a pre-determined rate.
AU Small Finance Bank
AU Small Finance Bank is giving 8% interest to its general customers on 18-month FDs. Senior citizens can also pay 8% interest on FDs of the same tenure in the bank. Getting 8.5 interest.
Equitas Small Finance Bank
Ordinary people are getting 8.5% interest on FDs of 444 days in Equitos Small Finance Bank. Senior citizens get 9% interest on FDs of the same tenure in the bank. Interest is being received.
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ESAF Small Finance Bank
In this small finance bank, common people are getting interest at the rate of 8.25 percent on FDs of 2 to 3 years. Senior citizens get interest at the rate of 8.25 percent on FDs of the same duration in the bank. Getting 8.75 interest.
Jana Small Finance
Ordinary people are getting 8.25% interest on Jana Small Finance Bank FDs of 365 to 1095 days. Senior citizens are getting 8.75% interest on FDs of the same tenure in the bank.
Ujjivan Small Finance Bank
12 months’ tenure in this small finance bank Ordinary people are getting 8.25% interest on FD. Senior citizens are getting 8.75% interest on FD of same tenure in the bank.
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Utkarsh Small Finance Bank
This Small Finance Bank has its The bank is paying 8.5% interest to general customers on FDs of 2 to 3 years. Senior citizens are getting 9.1% interest on FDs of the same tenure.
Suryoday Small Finance Bank
This Small Finance Bank has its The bank is paying 8.65% interest to the general customers on FDs of 2 years and 2 days. Senior citizens are getting 9.1% interest on FDs of the same tenure. The interest rate is the same even on FDs of 1500 days.
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Unity Small Finance Bank
This Small Finance Bank has its The bank is paying 9% interest to the general customers on FDs of 1001 days. Senior citizens are getting 9.5% interest on FDs of the same tenure in the bank.
Northeast Small Finance Bank
This Small Finance Bank has a tenure of 546 to 1111 days Ordinary customers are getting 9% interest on FD. Senior citizens are getting 9.5% interest on FD of the same tenure in the bank.
Here is the list of small finance banks giving highest interest on FD.
| Name of the Bank |
Interest on FD (%) (to the general public) |
Interest on FD (%) (to senior citizens) |
Tenure |
| AU Small Finance Bank | 8 | 8.5 | 18 months |
| Equitas Small Finance Bank | 8.5 | 9 | 444 days |
| ESAF Small Finance Bank | 8.25 | 8.75 | 2 years to less than 3 years |
| Jana Small Finance | 8.25 | 8.75 | 365 days to 1095 days |
| Northeast Small Finance Bank | 9 | 9.5 | 546 days to 1111 days |
| Suryoday Small Finance Bank | 8.65 | 9.1 | 2 years 2 days |
| Ujjivan Small Finance Bank | 8.25 | 8.75 | 12 months |
| Unity Small Finance Bank | 9 | 9.5 | 1001 days |
| Utkarsh Small Finance Bank | 8.5 | 9.1 | 2 years to 3 years; 1500 days |
(Note: Most banks give 0.50 percent additional interest to senior citizens.)
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.
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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 very 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.
