FD Rates of Top Small Finance Banks

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.

If you want to start a fixed deposit in a small finance bank, here is the year-wise interest rate offered by some top small finance banks - 

• Utkarsh Small Finance Bank

Utkarsh Small Finance Bank offers FD rates between 8.00% to 9.10%. They offer 0.50% to 0.60% more returns to senior citizens. Let’s look at the rates offered by them based on the tenure of your fixed deposit -

• Shivalik Small Finance Bank

Shivalik Small Finance Bank offers FD interest rates from 6.00% to 8.30% for the general public and 6.50% to 8.80% to senior citizens. The following are the rates offered by them based on FD tenures -

• Suryoday Bank

Suryoday Bank’s fixed deposit interest rates range from 7.25% to 9.10% based on your age and the tenure of your FD. Here are the detailed rates -

• Northeast Small Finance Bank

Northeast Small Finance Bank offers FDs from 6 month duration to 4 years 11 months and 29 days. Senior citizens are offered 0.50% higher rates than the general public. The following table details the rates based on the tenure of the fixed deposit -

• South Indian Bank

South Indian Bank offers fixed deposit interest rates from 6.70% to 7.90%. Take a look at the rates of interest based on FD tenures and age -

• Bajaj Finserv

Bajaj Finserv offers fixed deposits ranging from 1 year to 5 years. The rates range from 7.40% to 8.40% for the general public and 7.65% to 8.65% for senior citizens. The following table details the rates offered based on the duration of your fixed deposit -

• Shriram Finance

Shriram Finance’s FD interest rates start at 7.59% and go up to 8.97%. They offer higher interest rates, like others, for senior citizens. Let’s take a look at the interest rates offered by them based on the tenure of the fixed deposit and the age category -

Other Small Finance Bank FD Rates

Here is a list of some other popular small finance banks and their fixed deposit interest rates -

How to Choose the Best FD?

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.

Conclusion

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.