Most leading banks are currently offering low-interest rates on their fixed deposits (FDs), up to 6.5 per cent per annum. On the other hand, small finance banks such as Jana Small Finance Bank, Ujjivan Small Finance Bank, Suryoday Small Finance Bank and Utkarsh Small Finance Bank are offering interest rates ranging from 8 to 9.5 per cent on their fixed deposits. The interest rates range between 8 and 8.5 per for the general public, and almost 60 basis points more for senior citizens across different tenures.
Experts say fixed deposits are ideal for risk-averse investors and also for those looking at high liquidity.
Here are some of the small finance banks offering high-interest rates on their FDs:
Jana Small Finance Bank – This bank is offering interest rates ranging from 5 to 8.50 per cent on FDs for the general public. The tenure for FDs for this bank ranges from 7 days to 10 years. With deposits made with this small finance bank, senior citizens additionally fetch a higher interest rate on their deposits ranging from 5.6 to 9.10 per cent. Jana Small Finance Bank offers the highest interest rate on deposits with a maturity period of 16 months, ranging from 8.50 per cent for general customers to 9.10 per cent for senior citizens.
Ujjivan Small Finance Bank – One can open a fixed deposit account with this bank with a minimum of Rs 1,000 and in multiples of Rs 100 thereof. The FD comes with a tenure of 7 days to a maximum of 10 years. Ujjivan Small Finance Bank offers an interest rate between 5.50 and 8.10 per cent to the general public, and an additional 0.5 per cent to senior citizens. Depositors also get to choose the interest payment options ranging from monthly, quarterly, half-yearly, and annually, at maturity. However, note that the rate of interest paid for fixed deposits will vary according to the depositor’s tenure and the amount deposited.
Suryoday Small Finance Bank – This small finance bank offers interest rates ranging from 4 to 9 per cent for general customers, and 60 basis points more for senior citizens, depending on the tenure. With this bank, one can start a fixed deposit account with a minimum deposit amount of Rs 1,000. The interest rate offered by Suryoday Small Finance Bank is one of the highest on FDs with the tenure of 5 years, fetching an interest rate of 9 per cent for general people and 9.5 per cent for senior citizens. For FDs with a tenure of 2 – 3 years, the interest rate offered is 8.50 per cent and 9 per cent to the general public and senior citizens, respectively.
Utkarsh Small Finance Bank – This bank offers interest rates between 4.75 and 8.50 per cent to the general public, and 5.25 to 9 per cent to senior citizens on FDs with a tenure ranging from 7 days to 10 years. Utkarsh Small Finance Bank offers the highest interest rate on FDs with a tenure of 15 to 24 months, fetching 8.5 per cent and 9 per cent return for the general public and senior citizens, respectively.
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Source: Financial Express
