Maximize your savings: Top small finance banks offering up to 7.77 percent interest on fixed deposits
Small Finance Banks offer higher interest rates on fixed deposits compared to larger private and public sector banks. Jana Small Finance Bank tops the list at 7.77 percent.
Small finance banks (SFBs) often outshine larger banks by offering higher fixed deposit interest rates to attract customers. For instance, the State Bank of India (SBI) offers 6.25 percent to 6.45 percent on one to three years FDs, while SFBs offer 7.1-7.77 percent for the same tenure.
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SFB fixed deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to Rs 5 lakh per depositor per bank, covering both principal and interest. Its safety cover is similar to that for deposits with bigger banks. However, SFBs may carry a higher credit risk due to their focus on microfinance and small business loans. To mitigate this risk, investors should verify the SFB's RBI registration and keep deposits under Rs 5 lakh to ensure DICGC protection.
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Here are seven top small finance banks offering high interest rates on short-term fixed deposits with tenures between one to three years and deposit amounts up to Rs 1 crore. The data, as of September 5, has been compiled by BankBazaar.com.
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Jana Small Finance Bank offers an interest rate of 7.77 percent on FDs with a tenor of one year. Among SFBs, it is the best rate. In one year, a Rs 1 lakh FD would grow to Rs 1,07,770.
Suryoday Small Finance Bank offers an interest rate of 7.75 percent on FDs with a tenor of one year. In one year, a Rs 1 lakh FD would grow to Rs 1,07,750.
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Utkarsh Small Finance Bank offers an interest rate of 7.65 percent on a one-year FD. If you invest Rs 1 lakh, the amount will grow to Rs 1,07,650 on maturity.
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ESAF Small Finance Bank offers an interest rate of 7.6 percent. A deposit of Rs 1 lakh will grow to Rs 1,07,600 after one year.
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Ujjivan Small Finance Bank is offering an interest rate of 7.45 percent on one-year FD. A deposit of Rs 1 lakh will grow to Rs 1,07,450 on the maturity date.
Equitas Small Finance Bank offers an interest rate of 7.4 percent. A deposit of Rs 1 lakh will grow to Rs 1,07,400 after one year.
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AU Small Finance Bank offers an interest rate of 7.1 percent on FDs with a tenor of one year. If you invest Rs 1 lakh, the amount will grow to Rs 1,07,100 on maturity.
