These 4 Small Finance Banks Are Offering Interest Rates On FD Upto 7.75%

Small Finance Banks are popular to Indian citizens because these financial institutions provide financial services to the unserved and unbanked regions of the country. People from rural and semi-urban areas are being highly benefited by them. Additionally, the small finance banks usually offer better interest rates on FDs than other banks. Here is a list of 4 small finance banks that are offering lucrative interest rates on FDs for public and senior citizens.

Ujjivan Small Finance Bank

On a '2 years 1 day to 5 years' FD, Ujjivan Small Finance Bank is offering 6.75% interest to the public, while giving 7.25% to senior citizens. These interest rates are effective as of 5 March 2021.

Equitas Small Finance Bank FD

On a '5 years 1 day to 10 years' FD, Equitas Small Finance Bank is offering 6.65% interest to the public and 7.15% interest to senior citizens. However, there are offering 7.30% interest to senior citizens on FD for 888 days. These interest rates are effective as of 25 January 2021.

Suryoday Small Finance Bank FD

On a '5 years' FD, Suryoday Small Finance Bank is offering 7.25% interest to the public and, offering 7.75% interest to senior citizens. These interest rates are effective as of 15 February 2021.

Utkarsh Small Finance Bank FD

To mention Utkarsh Small Finance Bank in addition to the above list, this bank does not offer 5 years FD. But for '701 days to 3652 days' FD, they are offering 6.75% interest to the public and 7.25% to senior citizens. For a '1 year to 699 days' FD, they are giving 6.75% interest to the public, while the rate for senior citizens is the same. Hence, these are lucrative interest rates, effective as of 19 October 2020.

Comparison

Rather than other public or private banks, small finance banks usually offer 0.50% to 0.60% better interest rates on FD to public and senior citizens. During a time when the RBI is keeping the interest rates at historical low levels due to the pandemic, the banks are eventually offering interest on term deposits or Fixed Deposits (FD) at a low range. Hence, if you can invest in these small finance banks, you can earn better returns in the long term or short term.

To have a comparative idea one can find other banks' FD interest rates. The State Bank of India (SBI), that offers 5.40% interest to the public and 6.20% interest to senior citizens on FDs for 5 years and up to 10 years. These are effective from August 2021.