If you thought it is difficult to get interest rates in excess of 9 per cent, when commercial banks are giving just about 6 to 7 per cent interest rates, you are wrong. There are small finance banks, which are giving excellent interest rates.
Small Finance Banks were recently granted license by the Reserve Bank of India and the deposits at these banks can be considered as relatively safe. Take a look at some of these banks which offer he best interest rates.
Suryoday Small Finance Bank
For a deposit of 24 to 36 months, Suryoday Small Finance Bank is offering an interest rate of 8.75 per cent. For the same tenure senior citizens get a staggering 9.00 per cent as interest.
A 12-24 months to less than 36 months deposit fetches you an interest rate of 8.50 per cent, while senior citizens get an interest rate of 9.75 per cent on the same tenure.
This has to be the best that it gets in terms of deposits interest rates.
Utkarsh Small Finance Bank
This is another bank that easily beats deposit interest rates of commercial banks by a distance.
The bank offers an interest rate of 8.0 per cent on deposits of 1 year to less than 2 years. Senior citizens are entitled to an interest rate of 8.50 per cent on the same tenure. If you are looking at a slightly lower tenure of 271 days to 1 year, the bank offers you an interest rate of 7.50 per cent and the interest rate is 8 per cent for senior citizens.
Ujjivan Small Finance Bank
Interest rates on the Ujjivan Small Finance Bank deposits is 8 per cent. The bank is among larger small finance banks and is also listed. Presently, the bank's operations is spread across 24 states and union territories, and 209 districts across India.
This Bank is not a small finance bank, but, is actually a large private sector bank. The bank offers an interest rate of 7.50 per cent on its 366-days deposit.
For senior citizens the rate of interest works out to 8 per cent. Tax implications are the same no matter whether you invest in a fixed deposit of a private bank or a small savings bank. The deposits mentioned above are probably the best that you could get.
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