If you want to earn impressive returns without market risk by investing in a bank fixed deposit (FD), then the rates of Small Finance Banks (SFBs) are great news for you! These banks are offering significantly higher interest rates than their larger competitors, in many cases reaching 8.5% for ordinary citizens and over 9% for senior citizens. Small finance banks offer aggressive interest rates to attract depositors. Here, learn the latest FD rates from some of the country’s top small finance banks, and determine which tenure is most beneficial for you.
Highest FD Rates for Ordinary Citizens
Small finance banks are at the forefront of providing exceptional returns to investors. Among these banks, institutions like Utkarsh Small Finance Bank and Unity Small Finance Bank are offering interest rates of over 8% for ordinary citizens across various tenures. For example, Unity Small Finance Bank is offering excellent interest rates of up to 9.00% on 1001-day FDs, which is significantly higher than any other major bank in the country.
Similarly, Utkarsh Small Finance Bank is offering interest rates of up to 8.50% for 2- to 3-year tenures, and Suryoday Small Finance Bank is also offering interest rates of up to 9.01% for certain tenures. If you want maximum returns, be sure to pay attention to these banks’ special tenures.
Excellent Benefits of Over 9% for Senior Citizens
Interest rates at small finance banks are even more attractive for senior citizens, as they receive an additional 0.50% to 0.60% compared to regular citizens. Unity Small Finance Bank is offering senior citizens incredible returns of up to 9.50% on 1001-day FDs. This is one of the highest rates in the current market.
Utkarsh Small Finance Bank is also helping senior citizens grow their savings by offering interest rates of up to 9.10% on 2- to 3-year FDs. Suryoday Small Finance Bank is also offering interest rates of up to 8.40% on 5-year FDs and up to 9.10% on FDs of just over 2 years. These rates provide a strong source of fixed and regular income for senior citizens.
Safety and Tenure
High interest rates are certainly attractive, but there are some important things to keep in mind before investing. All small finance banks are registered with the Reserve Bank of India (RBI). Under the Deposit Insurance and Credit Guarantee Corporation (DICGC), deposits up to ₹5 lakh are fully insured. This means that your principal and interest up to ₹5 lakh are protected.
Therefore, if you’re making a large investment, you can divide your funds between different banks to reduce risk by less than ₹5 lakh. When choosing an investment period, consider the highest interest rates for that particular period, as these smaller finance banks often offer the highest returns for specific periods.