Small finance banks - which are primarily aimed at financial inclusion - often pay higher fixed deposits (FDs) compared to their larger counterparts, such as State Bank of India (SBI), and financial institutions such as India Post. Small finance banks, such as Ujjivan, Equitas, Utkarsh and Jana, offer interest rates to the tune of 3.5-8.5 per cent per annum on retail fixed deposits (fixed deposits up to Rs 2 crore), according to their websites. Just like the country's top commercial banks, small finance banks also offer a variety of maturity options for term deposits to their customers, starting from seven days.
Here's a comparison of fixed deposits interest rates offered by few small finance banks:
Ujjivan Small Finance Bank
| Maturity Period | Interest Rate With Effect From June 1 |
|---|---|
| Seven to 29 days | 3.50% |
| 30 to 89 days | 4.50% |
| 90 to 179 days | 5.25% |
| 180 to 364 days | 5.65% |
| One to two years | 6.95% |
| Two years and one day to three years | 6.50% |
| Three years and one day to five years | 6.25% |
| Five years and one day to 10 years | 6% |
| (Source: ujjivansfb.in) | |
Ujjivan Small Finance Bank provides a 50-basis-point (0.5 percentage point) higher return to senior citizens, according to its website.
Equitas Small Finance Bank
| Maturity Period | Interest Rate With Effect From June 1 |
|---|---|
| Seven to 14 days | 3.60% |
| 15 to 29 days | 3.60% |
| 30 to 45 days | 4.10% |
| 46 to 62 days | 4.60% |
| 63 to 90 days | 5.60% |
| 91 to 120 days | 5.85% |
| 121 to 180 days | 5.85% |
| 181 to 210 days | 6.10% |
| 211 to 270 days | 6.10% |
| 271 to 364 days | 6.60% |
| One year to 18 months | 7.10% |
| 18 months and one day to two years | 7.10% |
| Two years and one day to 887 days | 7.15% |
| 888 days | 7.35% |
| 889 days to three years | 7.15% |
| Three years and one day to four years | 6.75% |
| Four years and one day to five years | 6.75% |
| Five years and one day to 10 years | 6.75% |
| (Source: equitasbank.com) | |
Equitas Small Finance Bank provides a 60-basis-point higher return to senior citizen depositors (not applicable for NRE and NRO accounts), according to its website.
Utkarsh Small Finance Bank
| Maturity Period | Interest Rate With Effect From July 3 | |
|---|---|---|
| General Public | Senior Citizen | |
| Seven to 45 days | 3.50% | 4% |
| 46 to 90 days | 4.00% | 4.50% |
| 91 to 180 days | 4.50% | 5% |
| 181 to 180 days | 6.50% | 7% |
| 365 days to 699 days | 7.75% | 8.25% |
| 700 days | 8% | 8.50% |
| 701 to 3,652 days | 7.75% | 8.25% |
| (Source: utkarsh.bank) | ||
Jana Small Finance Bank
| Maturity Period | Interest Rate With Effect From July 13 | |
|---|---|---|
| General Public | Senior Citizen | |
| Seven to 14 days | 4.50% | 5% |
| 15 to 60 days | 5.25% | 5.75% |
| 61 to 90 days | 6.25% | 6.75% |
| 91 to 180 days | 6.50% | 7% |
| 181 to 364 days | 6.75% | 7.25% |
| One year (365 days) | 7.25% | 7.75% |
| One to three years | 7.50% | 8% |
| More than three years to less than five years | 7% | 7.50% |
| Five years (1,825 days) | 7.25% | 7.75% |
| Five to 10 years | 6.50% | 7% |
| (Source: janabank.com) | ||
Meanwhile, the country's top banks - including State Bank of India, Punjab National Bank and HDFC Bank - offers interest rates up to 5.40 per cent on fixed deposits at present.
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