Best FD Interest Rates: You can also get 8.50 to 9.50 percent annual interest through Fixed Deposit, but for this you have to do some research. In fact, apart from major banks, small Finance Bank also offers fixed deposits and pays some more interest to attract customers. This is also surprising, because their base is smaller than the major banks, then investors will opt for SFB instead of major banks by looking at more interest. But a question arises that even after the liquidity is low compared to the major banks, why are small finance banks giving more interest. If you do some research, then you will get the answer to this question and you will be able to invest in them without tension.
Small Finance Bank: HIST Slab (General Citizen)
Unity Small Finance Bank: 9% annually
North East Small Finance Bank: 9% annually
Sunrise Small Finance Bank: 8.65% annually
Shivalik Small Finance Bank: 8.55% annually
Equitas Small Finance Bank: 8.50% annually
Jana Small Finance Bank: 8.50% annually
Utkarsh Small Finance Bank: 8.50% annually
Ujjivan Small Finance Bank: 8.50% annually
ESAF Small Finance Bank: 8.25% annually
AU Small Finance Bank: 8% annually
Fincare Small Finance Bank: 8% annually
RBL Bank: 8% annually
(Source: www.paisabazaar.com, this can be the highest slab for different tenure.)
Small Finance Bank: HIST Slab (Senior Citizen)
Unity Small Finance Bank: 9.50% annually
North East Small Finance Bank: 9.50% annually
Sunrise Small Finance Bank: 9.15% annually
Shivalik Small Finance Bank: 9.05% annually
Equitas Small Finance Bank: 9.00% annually
Jana Small Finance Bank: 9.00% annually
Utkarsh Small Finance Bank: 9.00% annually
Ujjivan Small Finance Bank: 9.00% annually
ESAF Small Finance Bank: 8.75% annually
AU Small Finance Bank: 8.50% annually
Fincare Small Finance Bank: 8.50% annually
RBL Bank: 8.50% annually
(Source: www.paisabazaar.com, this can be the highest slab for different tenure.)
Why do you get more interest
Small finance banks are known for giving small ticket size loans. Usually, many customers who do not get loans from major banks turn to smart finance banks. Small finance banks have some light norms for loans and due to this, they also give loans to those who have been refused by the major banks. But instead they take more interesting. Due to getting more interesting in loan business, they attract customers by paying more interest on bank FDs. The advantage of this is that the more FD, the more deposits with the bank will increase and they can easily operate loan business.
Is there a deposit in it?
Small finance banks also get a license and regulate by the bank regulator Reserve Bank of India and the regulator is eyeing them. Therefore, this cannot be said, there is a deposit resk in them. However, there are some of his customers, whose credit history is not known. In those cases there is a rescue of loan default, but due to very low ticket size, it is rescue limited.
It is better to check the structure and customer base of banks before doing FD. Look at their financial history, check the default history. Also find out what is the status of the bank’s non-performing assets (NPA). Do not see their scheme rating by credit agencies.
How much is NPA on the bank?
It is necessary to check non-performing assets (NPA). Whenever the gross NPA of a bank increases, it has to provide provision for future damage. Provision is the amount that keeps separately to cover the possible damage caused by bank NPAs. NPAs are valued after reducing the provisions made for them in a bank’s net NPA in India. The net NPA ratio is the percentage of NPA on the net loan given by the bank. The low net NPA ratio shows that the bank has made enough provisions for its bad loan and has a good loan portfolio.
See the rating of the bank
Often the FD scheme of Small Finance Bank is rated by credit rating agencies. Credit rating agencies like CRISIL, ICRA and Care rate SFB based on their financial stability, asset quality, management capacity and other parameters. High credit ratings indicate that the financial position is strong and the risk in returning the deposit amount of depositors is very low. While it is good to stay away from poor rating banks.
(Source: Bank Websites, Financial Websites)