A fixed deposit is one of the most popular investments in India. Small Finance Banks offer attractive interest rates on FDs to their customers. Let us take a look at the interest rates they offer.
An FD, also known as a Fixed Deposit is a type of term deposit. It allows you to invest money for a specific period. In the end, you receive a lump sum amount after earning cumulative interest during the time period.
If you want to start a fixed deposit in a small finance bank, here is a list of the interest rates they offer -
Name of the Bank |
General Public |
Senior Citizens |
4.00% - 8.25% |
4.50% - 8.75% |
|
3.75% - 8.10% |
4.25% - 8.50% |
|
3.50% - 7.50% |
4.00% - 8.10% |
|
4.00% - 9.01% |
4.50% - 9.25% |
|
3.75% - 8.50% |
4.25% - 8.75% |
|
3.50% - 8.50% |
4.00% - 9.00% |
|
3.00% - 8.50% |
3.50% - 9.00% |
|
3.50% - 8.75% |
4.00% - 9.25% |
|
4.00% - 8.50% |
4.60% - 9.10% |
|
3.25% - 8.50% |
4.00% - 9.25% |
|
4.50% - 9.00% |
4.50% - 9.50% |
Note: Rates mentioned as of 17th April 2024 and can be revised by the bank without any notice. Please check with the bank before opening an account.
When choosing a fixed deposit for yourself, the interest rate is a prominent point to consider. But there are other things that you should consider. Some of them are mentioned below -
The application process and the documents required to start a fixed deposit.
You might need to prematurely withdraw your deposit. So, you should check the penalty charged by the bank or financial institutions where you start an FD.
Various financial institutions may have different types of fixed deposit schemes. Choose the one that suits your requirements.
Cross-check the credibility of the bank or the small finance bank you choose.
Choose an institution whose interest rate is higher than the expected inflation rate during the tenure you want to invest the money.
You can start a fixed deposit with either a bank or a small finance bank, the choice is yours! It is advisable to open a fixed deposit with a bank or NBFC that you already have an account with. That way, you won’t have to submit additional documents and the application process will be easy.
Please note that fixed deposits are not tax-saving investment options. You will have to pay taxes on the interest earned based on your tax-slab.
Fixed deposits are considered safe investments as your money doesn’t dapple in the market and there is no risk of losing it. You will get the interest that was promised to you when you start the fixed deposit.
The interest rate you earn will depend on the tenure you choose. Suryoday Bank and Unity Small Finance Bank give up to 9.01% and 9.00% on fixed deposits, respectively.
One of the major advantages of small finance banks is that they give higher interest rates on FDs and other products.
All small finance banks are safe and have competitive rates on their products. However, Suryoday Bank, Ujjivan Small Finance Bank Limited, and Equitas Small Finance Bank are the most popular ones.
The major difference between a small finance bank and a commercial bank is their customer base. Small finance banks mostly target customers who are small businessmen, farmers, etc. Commercial banks have no such restrictions.
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