Small finance banks often pay higher interest rates on fixed deposits than their larger peers. While commercial banks, such as State Bank of India (SBI), ICICI Bank and HDFC Bank, pay interest rates to the tune of 3.5-7.75 per cent on term deposits - or fixed deposits (FDs) - of below Rs 1 crore across different maturities, small finance banks pay interest rates in a range of 4-9.5 per cent. Small finance banks are aimed at financial inclusion, by way of savings vehicles and supply of credit to individuals, small business units, and micro and small industries in the unorganised sector through low-cost operations, according to the Reserve Bank of India (RBI).
Here's a comparison of interest rates paid by small finance banks such as Jana Small Finance Bank, Fincare Small Finance Bank, ESAF Small Finance Bank Equitas Small Finance Bank and Utkarsh Small Finance Bank on fixed deposits of up to Rs 1 crore in different maturity periods:
Jana Small Finance Bank
Here are interest rates paid by Jana SFB on regular fixed deposits with effect from September 8, according to its website - janabank.com:
| Term | Interest rate |
|---|---|
| 7 days to 45 days | 6.00% |
| 46 days to 60 days | 6.50% |
| 61 days to 180 days | 7.00% |
| 181 days to 365 days | 8.00% |
| 366* days | 8.25% |
| 367 days to 3 years | 8.50% |
| More than 3 years up to 5 years | 8.00% |
| More than 5 years up to 10 years | 7.00% |
Fincare Small Finance Bank
Fincare Small Finance Bank pays the following interest rates on FDs in different maturities, according to the bank's website - fincarebank.com:
| Term | Interest rate for general public | Interest rate for senior citizen |
|---|---|---|
| 7 days to 45 days | 4.00% | 4.50% |
| 46 days to 90 days | 4.00% | 4.50% |
| 91 days to 180 days | 6.00% | 6.50% |
| 181 days to 364 days | 7.00% | 7.50% |
| 12 months to 15 months | 8.00% | 8.50% |
| 15 months 1 day to 18 months | 8.25% | 8.75% |
| 18 months 1 day to 21 months | 8.50% | 9.00% |
| 21 months 1 day to 24 months | 8.75% | 9.25% |
| 24 months 1 day to 36 months | 9.00% | 9.50% |
| 3 years 1 day to 5 years | 8.00% | 8.50% |
| 5 years 1 day to 7 years | 7.00% | 7.50% |
ESAF Small Finance Bank
ESAF Small Finance Bank pays the following interest rates on fixed deposits with effect from April 1, according to its website - esafbank.com:
| Retail Term Deposit (Less than INR 1 Cr) | Rate of Interest Applicable | |
|---|---|---|
| Term | ||
| Tenure | General public | Senior citizen |
| 7 - 14 days | 5.75% | 6.25% |
| 15 - 59 days | 5.75% | 6.25% |
| 60 - 90 days | 6.50% | 7.00% |
| 91 - 179 days | 6.75% | 7.25% |
| 180 - 363 days | 7.50% | 8.00% |
| 364 days | 5.60% | 6.10% |
| 365 - 727 days | 8.75% | 9.25% |
| 728 days | 6.80% | 7.30% |
| 729 - 1,091 days | 8.00% | 8.50% |
| 1,092 days | 5.66% | 6.16% |
| 1,093 - 1,819 days | 7.00% | 7.50% |
| 1,820 days | 5.65% | 6.15% |
| 1,821 - 3,652 days | 7.00% | 7.50% |
Equitas Small Finance Bank
Equitas Small Finance Bank pays the following interest rates on fixed deposits with effect from July 5, according to the bank's website - equitasbank.com:
| Term | Interest rate |
|---|---|
| 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 | 8.00% |
| 18 months 1 day to 2 years | 7.75% |
| 2 years 1 day to 3 years | 7.75% |
| 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% |
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank pays the following interest rates on fixed deposits with effect from March 14, according to its website - utkarsh.bank:
| Term | Interest rate | |
|---|---|---|
| General public | Senior citizen | |
| 7 Days to 15 Days | 3.50% | 4.00% |
| 16 Days to 28 Days | 3.50% | 4.00% |
| 29 Days to 45 Days | 4.00% | 4.50% |
| 46 Days to 90 Days | 4.50% | 5.00% |
| 91 Days to 120 Days | 5.00% | 5.50% |
| 121 Days to 179 Days | 5.50% | 6.00% |
| 180 Days to 210 Days | 6.00% | 6.50% |
| 211 Days to 270 Days | 7.00% | 7.50% |
| 271 Days to Less than 1 Year | 7.50% | 8.00% |
| 1 Year to 455 Days | 8.25% | 8.75% |
| 456 Days to Less than 2 Years | 8.50% | 9.00% |
| 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% |
Fixed deposits or term deposits provide fixed returns on income and, therefore, are suitable for investors with a low risk appetite, say wealth planners.
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