Highest FD rates: Small finance banks provide great interest rates on fixed deposits (FDs), with some going as high as 9%. If you’re looking for top rates, you might want to invest soon, as rates could go down later. Before you invest, check out the best FD rates from small finance banks. Remember, these rates apply to deposits up to Rs 2 crore.
However, according to an ET report, due to their unique business model, small finance banks have a different risk profile compared to regular commercial banks.This means that fixed deposits from these banks cannot be compared to those in full-service banks owing to the risk profile.
However, deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, covering both principal and interest. Experts suggest that regular investors should limit their investment in small finance bank FDs to ensure it’s within this insurance limit. This way, if something goes wrong, they are protected.
ALSO READ | Short-term fixed deposits: Earn FD rates up to 8.75%; top banks for highest interest rates for less than 1 year tenure
Here’s a list of small finance banks offering the highest fixed deposit (FD) interest rates:
1. Unity Small Finance Bank
Unity Small Finance Bank offers a 9% interest rate on fixed deposits (FDs) with a 1001-day maturity.
2. Suryoday Small Finance Bank
Suryoday Small Finance Bank provides an 8.65% interest rate for FDs maturing in two years and two days.
3. Ujjivan Small Finance Bank
Ujjivan Small Finance Bank offers an 8.5% interest rate for FDs with a maturity of 15 months.
4. Jana Small Finance Bank
Jana Small Finance Bank provides an 8.5% interest rate for FDs maturing in 365 days.
5. Equitas Small Finance Bank
Equitas Small Finance Bank offers an 8.5% interest rate for FDs maturing in 444 days.
6. Utkarsh Small Finance Bank
Utkarsh Small Finance Bank provides an 8.5% interest rate for FDs with maturities between two and three years.
ALSO READ | High FD interest rates for senior citizens: Get up to 8.1% on 3-year fixed deposits; check banks list here
Highest FD interest rates by small finance banks
However, according to an ET report, due to their unique business model, small finance banks have a different risk profile compared to regular commercial banks.This means that fixed deposits from these banks cannot be compared to those in full-service banks owing to the risk profile.
However, deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, covering both principal and interest. Experts suggest that regular investors should limit their investment in small finance bank FDs to ensure it’s within this insurance limit. This way, if something goes wrong, they are protected.
ALSO READ | Short-term fixed deposits: Earn FD rates up to 8.75%; top banks for highest interest rates for less than 1 year tenure
Here’s a list of small finance banks offering the highest fixed deposit (FD) interest rates:
1. Unity Small Finance Bank
Unity Small Finance Bank offers a 9% interest rate on fixed deposits (FDs) with a 1001-day maturity.
2. Suryoday Small Finance Bank
Suryoday Small Finance Bank provides an 8.65% interest rate for FDs maturing in two years and two days.
3. Ujjivan Small Finance Bank
Ujjivan Small Finance Bank offers an 8.5% interest rate for FDs with a maturity of 15 months.
4. Jana Small Finance Bank
Jana Small Finance Bank provides an 8.5% interest rate for FDs maturing in 365 days.
5. Equitas Small Finance Bank
Equitas Small Finance Bank offers an 8.5% interest rate for FDs maturing in 444 days.
6. Utkarsh Small Finance Bank
Utkarsh Small Finance Bank provides an 8.5% interest rate for FDs with maturities between two and three years.
ALSO READ | High FD interest rates for senior citizens: Get up to 8.1% on 3-year fixed deposits; check banks list here
Highest FD interest rates by small finance banks
| Bank Name | Highest Interest rate | Tenure |
| Unity Small Finance Bank | 9% | 1001 days |
| Suryoday Small Finance | 8.65% | 2 years 2 days |
| Ujjivan Small Finance Bank | 8.50% | 15 months |
| Jana Small Finance Bank | 8.50% | 365 days |
| Equitas Small Finance Bank | 8.50% | 444 days |
| Utkarsh Small Finance Bank | 8.50% | two years and three years |
Source: Paisabazar.com as of April 27, 2024 quoted by ET
7. ESAF Small Finance Bank
ESAF Small Finance Bank offers an 8.25% interest rate for FDs maturing between two years and less than three years.
8. AU Small Finance Bank
AU Small Finance Bank offers an 8% interest rate for FDs maturing in 18 months.
