FDs are deemed to be the perfect partner for those who are looking for high liquidity with minimal risk. In India, many small finance banks are offering general investors with an interest rate of 8 per cent and senior citizens across select maturities with more than 8.5 per cent on fixed deposits. These banks had previously delivered interest rates of up to 9 per cent but due to the pandemic of Covid-19, these banks have also lowered the interest rate on FD. Here we have covered the higher rates on FD which are offered by some small finance banks across the country to both general and senior citizens currently. So let's have a look.
1. Jana Small Finance Bank
Jana Small Finance Bank offers interest on FDs varying from 7 days to 10 years from 3.5 per cent to 7.5 per cent whereas senior citizens get an additional 50 basis points which means that senior citizens will get an interest rate ranging from 4% to 8% on these deposits. The bank offers the maximum interest rate on deposits of maturity term of 2 years to 3 years. Thus, these deposits will generate an interest rate of 7.50% and 8% to general customers and senior citizens.
2. Utkarsh Small Finance Bank (USFB)
Utkarsh Small Finance Bank offers interest rates varying from 3.25 to 8 per cent for the general investors and 3.75 to 8.50 per cent for senior citizens on FDs with maturity tenure of 7 days to 10 years. The bank offers higher interest rates on deposits with a maturity term of 700 days. Hence, the bank will offer an interest rate of 8.5% for senior citizens and 8% for general investors.
3. Suryoday Small Finance Bank
Suryoday Small Finance Bank serves its customers with a minimum deposit cap of Rs.1000 on fixed deposit and the interest rates varies from 4 per cent to 8.25 per cent for the general public and 4.5% to 8.60% for senior citizens based on the term. The bank delivers the highest interest rate upon maturity on deposits of 5 years which will deliver an interest rate of 8% to the general public and 8.5% to the senior citizens. Suryoday Small Finance Bank provides an interest of 8.10 per cent to general customers and 8.60 per cent to senior citizens for deposits maturing in more than 2 years or 3 years.
4. North East Small Finance Bank
This bank offers interest rates ranging from 4% to 8% to general citizens and 4.5% to 8.50% to senior citizens on FDs for a tenure of 7 days to 10 years. For the deposits maturing in 730 days to less than 1095 days, this bank offers the highest rate of interest. Thus, these deposits would receive interest at 8 per cent, 8.5 per cent, respectively, for general and senior citizens.