Small finance banks - aimed primarily at financial inclusion - often pay higher returns on term deposits - or fixed deposits (FD) - compared to private and public sector commercial banks and financial institutions such as the post office. Small finance banks, such as Ujjivan, Equitas, Utkarsh, Jana and Capital, offer interest at the rate of 5-9 per cent on fixed deposits up to Rs 2 crore, according to their websites. While small finance banks offer maturities comparable with those in fixed deposits in major commercial banks, the interest rates paid by the small finance banks are often higher compared to their larger peers.
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Here's a comparison of interest rates on fixed deposits (bank FDs) up to Rs 2 crore offered by five small finance banks, and major commercial banks:
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Ujjivan
table.ujjivansfb {
border-top: solid 1px #ccc;
border-left: solid 1px #ccc;
border-right: solid 1px #ccc;
}
table.ujjivansfb th {
background-color: #f5f5f5;
padding: 5px 10px;
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
text-align: center;
}
table.ujjivansfb td {
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
padding: 5px 10px;
text-align: center;
}
table.ujjivansfb th:nth-child(1), table.ujjivansfb td:nth-child(1) {
width: 40%;
text-align: left;
}
table.ujjivansfb th:last-child, table.ujjivansfb td:last-child {
border-right: 0;
}
@media only screen and (max-device-width: 480px) and (min-device-width: 320px) {
table.ujjivansfb {
display: table;
min-width: 280px;
max-width: 100%;
}
table.ujjivansfb th, table.ujjivansfb td, table.ujjivansfb th:nth-child(n+1), table.ujjivansfb td:nth-child(n+1) {
display: table-cell;
line-height: normal;
}
| Term | Interest rate with effect from February 27, 2019 |
|---|---|
| 7 Days to 29 Days | 5.50% |
| 30 Days to 89 Days | 6.25% |
| 90 Days to 179 Days | 6.75% |
| 180 Days to 364 Days | 7.50% |
| 1 Year to 2 Years | 8.30% |
| 2 Years and 1 Day to 734 Days | 7.50% |
| 735 Days | 8.25% |
| 736 Days to 798 Days | 7.50% |
| 799 Days | 8.60% |
| 800 Days to 3 Years | 7.50% |
| 3 Years and 1 Day to 5 Years | 7.00% |
| 5 Years and 1 Day to 10 Years | 6.50% |
| Additional Interest Rate for Senior Citizens | 0.50% |
| (Source: ujjivansfb.in) | |
Equitas
table.equitas {
border-top: solid 1px #ccc;
border-left: solid 1px #ccc;
border-right: solid 1px #ccc;
}
table.equitas th {
background-color: #f5f5f5;
padding: 5px 10px;
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
text-align: center;
}
table.equitas td {
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
padding: 5px 10px;
text-align: center;
}
table.equitas th:nth-child(1), table.equitas td:nth-child(1) {
width: 40%;
text-align: left;
}
table.equitas th:last-child, table.equitas td:last-child {
border-right: 0;
}
@media only screen and (max-device-width: 480px) and (min-device-width: 320px) {
table.equitas {
display: table;
min-width: 280px;
max-width: 100%;
}
table.equitas th, table.equitas td, table.equitas th:nth-child(n+1), table.equitas td:nth-child(n+1) {
display: table-cell;
line-height: normal;
}
| Term | Interest rate with effect from November 1, 2018 |
|---|---|
| 7 - 14 days | 5.00% |
| 15 - 29 days | 5.50% |
| 30 - 45 days | 6.00% |
| 46 - 62 days | 6.25% |
| 63 - 90 days | 6.25% |
| 91 - 120 days | 6.50% |
| 121 - 180 days | 6.50% |
| 181 - 210 days | 6.75% |
| 211 - 270 days | 6.75% |
| 271 - 364 days | 7.50% |
| 1 year to 18 months | 8.50% |
| 18 months 1 day to 2 years | 8.75% |
| 2 years 1 day to 3 years | 8.80% |
| 3 years 1 day to 4 years | 7.00% |
| 4 years 1 day to 5 years | 7.00% |
| 5 years 1 day to 10 years | 7.00% |
| (Source: equitasbank.com) | |
Utkarsh
table.utkarsh {
border-top: solid 1px #ccc;
border-left: solid 1px #ccc;
border-right: solid 1px #ccc;
}
table.utkarsh th {
background-color: #f5f5f5;
padding: 5px 10px;
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
text-align: center;
}
table.utkarsh td {
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
padding: 5px 10px;
text-align: center;
}
table.utkarsh th:nth-child(1), table.utkarsh td:nth-child(1) {
width: 40%;
text-align: left;
}
table.utkarsh th:last-child, table.utkarsh td:last-child {
border-right: 0;
}
@media only screen and (max-device-width: 480px) and (min-device-width: 320px) {
table.utkarsh {
display: table;
min-width: 280px;
max-width: 100%;
}
table.utkarsh th, table.utkarsh td, table.utkarsh th:nth-child(n+1), table.utkarsh td:nth-child(n+1) {
display: table-cell;
line-height: normal;
}
| Term | Interest rate with effect from February 28, 2019 | |
|---|---|---|
| General public | Senior citizen | |
| 7 Days to 15 days | 5.00% | 5.50% |
| 16 Days to 28 Days | 5.00% | 5.50% |
| 29 Days to 45 Days | 5.00% | 5.50% |
| 46 Days to 90 Days | 5.75% | 6.25% |
| 91 Days to 120 Days | 7.00% | 7.50% |
| 121 Days to 180 Days | 7.00% | 7.50% |
| 181 Days to 210 Days | 7.25% | 7.75% |
| 211 Days to 270 Days | 7.25% | 7.75% |
| 271 Days to less than 1 Year | 7.50% | 8.00% |
| 1 Year to 455 Days | 8.50% | 9.00% |
| 456 Days to less than 2 years | 9.00% | 9.50% |
| 2 Years to less than 3 Years | 7.85% | 8.35% |
| 3 Years to less than 5 Years | 7.00% | 7.50% |
| 5 Years | 8.00% | 8.50% |
| More than 5 Years to 10 Years | 7.00% | 7.50% |
| (Source: utkarsh.bank) | ||
Jana
table.janabank {
border-top: solid 1px #ccc;
border-left: solid 1px #ccc;
border-right: solid 1px #ccc;
}
table.janabank th {
background-color: #f5f5f5;
padding: 5px 10px;
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
text-align: center;
}
table.janabank td {
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
padding: 5px 10px;
text-align: center;
}
table.janabank th:nth-child(1), table.janabank td:nth-child(1) {
width: 40%;
text-align: left;
}
table.janabank th:last-child, table.janabank td:last-child {
border-right: 0;
}
@media only screen and (max-device-width: 480px) and (min-device-width: 320px) {
table.janabank {
display: table;
min-width: 280px;
max-width: 100%;
}
table.janabank th, table.janabank td, table.janabank th:nth-child(n+1), table.janabank td:nth-child(n+1) {
display: table-cell;
line-height: normal;
}
| Term | Interest rate | |
|---|---|---|
| General public | Senior citizen | |
| 7 days to 45 days | 6.00% | 6.60% |
| 46 days to 60 days | 6.50% | 7.10% |
| 61 days to 180 days | 7.00% | 7.60% |
| 181 days to 365 days | 8.50% | 9.10% |
| More than 1 year up to 2 years | 8.50% | 9.10% |
| More than 2 years up to 3 years | 8.50% | 9.10% |
| 3 years | 9.00% | 9.60% |
| More than 3 years up to 5 years | 8.50% | 9.10% |
| More than 5 years up to 10 years | 7.00% | 7.60% |
| (Source: janabank.com) | ||
Capital
table.capital {
border-top: solid 1px #ccc;
border-left: solid 1px #ccc;
border-right: solid 1px #ccc;
}
table.capital th {
background-color: #f5f5f5;
padding: 5px 10px;
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
text-align: center;
}
table.capital td {
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
padding: 5px 10px;
text-align: center;
}
table.capital th:nth-child(1), table.capital td:nth-child(1) {
width: 40%;
text-align: left;
}
table.capital th:last-child, table.capital td:last-child {
border-right: 0;
}
@media only screen and (max-device-width: 480px) and (min-device-width: 320px) {
table.capital {
display: table;
min-width: 280px;
max-width: 100%;
}
table.capital th, table.capital td, table.capital th:nth-child(n+1), table.capital td:nth-child(n+1) {
display: table-cell;
line-height: normal;
}
| Term | Interest rate with effect from March 14, 2019 | |
|---|---|---|
| General public | Senior citizen | |
| 15 Days to 30 Days | 5.40% | 5.90% |
| 31 Days to 45 Days | 5.75% | 6.25% |
| 46 Days to 89 Days | 6.50% | 7.00% |
| 90 Days to 179 Days | 6.85% | 7.35% |
| 180 Days to less than 1 Year | 7.15% | 7.65% |
| 1 Year to less than 5 Years | 7.80% | 8.30% |
| 5 Years and upto 10 Years | 7.65% | 8.15% |
| Special category | ||
| 400 Days | 8.00% | 8.50% |
| 900 Days | 7.85% | 8.35% |
| (Source: capitalbank.co.in) | ||
SBI
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border-left: solid 1px #ccc;
border-right: solid 1px #ccc;
font-size: 14px;
margin: 10px 0px;
}
table.sbiTab1 th {
background-color: #f5f5f5;
padding: 5px 10px;
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
}
table.sbiTab1 td {
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
padding: 5px 10px;
}
table.sbiTab1 th:nth-child(1), table.sbiTab1 td:nth-child(1) {
}
table.sbiTab1 th:last-child, table.sbiTab1 td:last-child {
border-right: 0;
}
@media only screen and (max-device-width: 480px) and (min-device-width: 320px) {
table.sbiTab1 {
max-width: 100%;
}
table.sbiTab1 th, table.sbiTab1 td, table.sbiTab1 th:nth-child(n+1), table.sbiTab1 td:nth-child(n+1) {
display: table-cell;
line-height: normal;
}
table.sbiTab1 th:last-child, table.sbiTab1 td:last-child {
border-right: 0;
}
| Term | Interest rates for general public with effect from February 22, 2019 | Interest rates for senior citizens |
|---|---|---|
| 7 days to 45 days | 5.75% | 6.25% |
| 46 days to 179 days | 6.25% | 6.75% |
| 180 days to 210 days | 6.35% | 6.85% |
| 211 days to less than 1 year | 6.4% | 6.9% |
| 1 year to less than 2 year | 6.8% | 7.3% |
| 2 years to less than 3 years | 6.8% | 7.3% |
| 3 years to less than 5 years | 6.8% | 7.3% |
| 5 years and up to 10 years | 6.85% | 7.35% |
| (Source: sbi.co.in) | ||
HDFC Bank
table.hdfc_table {
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border-left: solid 1px #ccc;
border-right: solid 1px #ccc;
}
table.hdfc_table th {
background-color: #f5f5f5;
padding: 5px 10px;
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
text-align: center;
}
table.hdfc_table td {
border-bottom: solid 1px #ccc;
border-right: solid 1px #ccc;
padding: 5px 10px;
text-align: center;
}
table.hdfc_table th:nth-child(1), table.hdfc_table td:nth-child(1) {
width: 40%;
text-align: left;
}
table.hdfc_table th:last-child, table.hdfc_table td:last-child {
border-right: 0;
}
@media only screen and (max-device-width: 480px) and (min-device-width: 320px) {
table.hdfc_table {
display: table;
min-width: 280px;
max-width: 100%;
font-size: 14px;
}
table.hdfc_table th, table.hdfc_table td, table.hdfc_table th:nth-child(n+1), table.hdfc_table td:nth-child(n+1) {
display: table-cell;
line-height: normal;
}
table.hdfc_table th:last-child, table.hdfc_table td:last-child {
border-right: 0;
}
}
| Term |
Interest rate for general public |
Interest rate for senior citizens |
|---|---|---|
| 7 - 14 days | 3.50% | 4.00% |
| 15 - 29 days | 4.25% | 4.75% |
| 30 - 45 days | 5.75% | 6.25% |
| 46 - 60 days | 6.25% | 6.75% |
| 61 - 90 days | 6.25% | 6.75% |
| 91 days - 6 months | 6.25% | 6.75% |
| 6 months 1 day- 6 months 3 days | 6.75% | 7.25% |
| 6 months 4 days | 6.75% | 7.25% |
| 6 months 5 days- 9 months | 6.75% | 7.25% |
| 9 months 1 day- 9 months 3 days | 7.10% | 7.60% |
| 9 months 4 days | 7.10% | 7.60% |
| 9 months 5 days - 9 months 15 days | 7.10% | 7.60% |
| 9 months 16 days | 7.10% | 7.60% |
| 9 months 17 days < 1 Year | 7.10% | 7.60% |
| 1 Year | 7.30% | 7.80% |
| 1 year 1 day - 1 year 3 days | 7.30% | 7.80% |
| 1 year 4 days | 7.30% | 7.80% |
| 1 year 5 days - 1 Year 15 Days | 7.30% | 7.80% |
| 1 Year 16 days | 7.30% | 7.80% |
| 1 year 17 days - 2 Years | 7.30% | 7.80% |
| 2 years 1day - 2 Years 15 days | 7.40% | 7.90% |
| 2 Years 16 days | 7.40% | 7.90% |
| 2 years 17 days - 3 Years | 7.40% | 7.90% |
| 3 years 1day - 5 years | 7.25% | 7.75% |
| 5 Years 1 Day - 8 Years | 6.50% | 7.00% |
| 8 Years 1 Day - 10 Years | 6.50% | 7.00% |
(Also read: Axis Bank revises FD interest rates)
Meanwhile, many banks today offer income tax benefits under a special type of fixed deposit (FD) or term deposit account. This income tax benefit can be availed by the eligible assessees against their investment - up to Rs. 1.5 lakh in a financial year - in the form of deduction from taxable income under Section 80C of the Income Tax Act. Also known as tax-saving fixed deposit or tax-saving FD, this special type of fixed deposit allows a minimum maturity period of five years and a maximum of 10 years.
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