Fixed Deposits In Small Finance Banks Fetch Interest At These Rates
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.Â
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:
Ujjivan
| 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
| 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
| 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
| 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
| Term | Interest rate with effect from March 14, 2019 | Â |
|---|---|---|
| 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 | Â | Â |
| 400 Days | 8.00% | 8.50% |
| 900 Days | 7.85% | 8.35% |
| (Source: capitalbank.co.in) | ||
SBI
| 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
| 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.Â
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