Small finance banks offer competitive interest rates and a range of maturity options for recurring deposit. A recurring deposit or RD account enables the investor to contribute a fixed amount of money at regular intervals, and generates interest income. The interest rates offered by small finance banks are often higher compared to commercial banks, and other financial institutions such as designated post offices. Many small finance banks - which are aimed at financial inclusion - provide interest rates to the tune of 5.60-9.60 per cent per annum on recurring deposit accounts.
Here is a comparison of recurring deposit interest rates paid by small finance banks:
AU Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, aubank.in:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 3 months | 6.75% | 7.25% |
| 6 months | 6.90% | 7.40% |
| 9 months to 12 months | 7.01% | 7.51% |
| 15 months to 18 months | 7.63% | 8.13% |
| 21 months to 24 months | 7.87% | 8.37% |
| 27 months to 36 months | 8.10% | 8.60% |
| 37 months to 45 months | 7.53% | 8.03% |
| 46 months to 60 months | 7.77% | 8.27% |
| 61 months to 120 months | 7.30% | 7.80% |
Jana Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, janabank.com:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| > 1 month - 6 months | 6.00% | 6.60% |
| > 6 months - 12 months | 8.50% | 9.10% |
| > 12 months - 24 months | 8.50% | 9.10% |
| > 24 months - < 36 months | 8.50% | 9.10% |
| = 36 months | 9.00% | 9.60% |
| > 36 months - 60 months | 8.50% | 9.10% |
| > 60 months - 120 months | 7.00% | 7.60% |
Suryoday Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, surodaybank.com:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 6 months | 7.50% | 8.00% |
| 9 months | 7.75% | 8.25% |
| 12 months | 8.50% | 9.00% |
| 15 months | 8.50% | 9.00% |
| 18 months | 8.50% | 9.00% |
| 21 months | 8.50% | 9.00% |
| 24 months | 8.50% | 9.00% |
| 27 months | 8.75% | 9.25% |
| 30 months | 8.75% | 9.25% |
| 33 months | 8.75% | 9.25% |
| 36 months | 8.75% | 9.25% |
| Above 3 years to less than 5 years | 8.00% | 8.50% |
| 5 years | 8.25% | 8.75% |
| Above 5 years to 10 years | 7.25% | 7.75% |
ESAF Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, esafbank.com:
| Period | General public (% p.a.) | Senior citizens (% p.a.) |
|---|---|---|
| 180 - 363 days | 7.50% | 8.00% |
| 364 days | 5.60% | 6.10% |
| 365 - 727 days | 8.50% | 9.00% |
| 728 days | 6.80% | 7.30% |
| 729 - 1091 days | 8.00% | 8.50% |
| 1092 days | 5.66% | 6.16% |
| 1093 - 1819 days | 7.30% | 7.80% |
| 1820 days | 5.65% | 6.15% |
| 1821 - 3652 days | 7.30% | 7.80% |
Equitas Small Finance Bank
The bank offers the following interest rates on RD accounts according to its website, equitasbank.com:
| Period | General public (% p.a.) |
|---|---|
| 12 months | 8.20% |
| 15 months | 8.20% |
| 18 months | 8.20% |
| 21 months | 8.40% |
| 24 months | 8.40% |
| 30 months | 8.55% |
| 36 months | 8.55% |
| 48 months | 7.00% |
| 60 months | 7.00% |
| 90 months | 7.00% |
| 120 months | 7.00% |
The bank pays 0.75 per cent extra to senior citizens, according to the its website.
The interest rates paid by small finance banks are often higher compared to state-owned lender State Bank of India, and its private sector peers such as HDFC Bank and ICICI Bank.
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