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 deposits. While ordinary citizens are getting 8.65 percent to 9 percent annual interest, senior citizens are getting 9 to 9.50 percent annual interest. 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. Let us tell you that apart from major banks, post offices in the country, small finance banks also provide the facility of fixed deposit. Fixed deposit is a safe option for investment, where interest is received according to the pre-determined interest.
Small Finance Banks: Highest Interest across different tenures (General Citizens)
Unity Small Finance Bank: 9% p.a.
North East Small Finance Bank: 9% p.a.
Suryoday Small Finance Bank: 8.65% p.a.
Shivalik Small Finance Bank : 8.55% p.a.
Equitas Small Finance Bank : 8.50% p.a.
Jana Small Finance Bank : 8.50% p.a.
Utkarsh Small Finance Bank : 8.50% p.a.
Ujjivan Small Finance Bank : 8.50% p.a.
ESAF Small Finance Bank : 8.25% p.a.
AU Small Finance Bank : 8% p.a.
Fincare Small Finance Bank : 8% p.a.
RBL Bank : 8% p.a.
(Source: www.paisabazaar.com)
Small Finance Banks: Highest Interest across different tenures (Senior Citizens)
Unity Small Finance Bank: 9.50% p.a.
North East Small Finance Bank : 9.50% p.a.
Suryoday Small Finance Bank: 9.15% p.a.
Shivalik Small Finance Bank: 9.05% p.a.
Equitas Small Finance Bank : 9.00% p.a.
Jana Small Finance Bank : 9.00% p.a.
Utkarsh Small Finance Bank : 9.00% p.a.
Ujjivan Small Finance Bank : 9.00% p.a.
ESAF Small Finance Bank : 8.75% p.a.
AU Small Finance Bank : 8.50% p.a.
Fincare Small Finance Bank : 8.50% p.a.
RBL Bank : 8.50% p.a.
(Source: www.paisabazaar.com)
(Note: Most banks give 0.50 percent additional interest to senior citizens.)
Why are small finance banks offering higher interest rates?
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 light norms for loans and due to this they give loans to those people who are refused by major banks. But in return they charge more interest. Due to taking more interest in loan business, those banks attract customers by giving more interest on FD. The advantage of this is that the more FD there is, the more deposit will increase with the bank and they can easily operate the loan business as well.
Is there any deposit risk in this?
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.
(Source: Financial Websites)
