Small Finance Bank FDs: Many people are currently looking for safe investment options because they wish to avoid investment risks. If you are seeking a secure investment, a bank Fixed Deposit (FD) could be an excellent choice. Bank FDs offer investors guaranteed returns without any risk. A key advantage of bank FDs is that they remain unaffected by market fluctuations, ensuring a fixed return.
Currently, the country’s largest public and private sector banks—SBI and HDFC—are offering attractive interest rates to both regular and senior citizen investors. However, we are focusing on small finance banks that offer even higher interest rates to senior citizens compared to these major banks. Investing in a 5-year FD with these small finance banks can yield substantial returns. Let us explore this topic in detail.
Interest Rates on 5-Year FDs Offered by Small Finance Banks
For instance, Suryoday Small Finance Bank is currently offering up to 8.50% interest on 5-year FDs for senior citizens, a rate significantly higher than that of many other banks. Additionally, other small finance banks offer the following rates for 5-year FDs: Jana Small Finance Bank (8%), Ujjivan Small Finance Bank (7.70%), Equitas Small Finance Bank (7.50%), Utkarsh Small Finance Bank (7.50%), AU Small Finance Bank (7.25%), and Slic Small Finance Bank (7.25%).
Interest Rates for Senior Citizens
Generally, senior citizens receive higher interest rates compared to regular customers. Individuals aged 60 years or older are eligible for this benefit. Currently, Suryoday Small Finance Bank is offering an interest rate of 8.50% to senior citizens on fixed deposits (FDs). Consequently, for senior citizens looking for long-term FD options, this small finance bank could be an excellent choice.
How much will a ₹5 lakh FD yield?
If an investor opens an FD of ₹5 lakh for a tenure of 5 years at an interest rate of 8.50%, they will receive a total of ₹761,397 at maturity. Of this total amount, the interest component alone will be ₹261,397.