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5 Small Finance Banks Offering Over 7% Returns On 1 Year FDs To Senior Citizens
Senior citizens not only want to secure their golden years after retirement by investing, but they also want to assure the safety of their deposits. And, when it comes to guaranteed deposit safety and high returns, fixed deposits are a wise debt instrument for all sorts of financial goals, whether they are short, mid, or long term. As we all know, banks have started to raise interest rates on fixed deposits, but there is still some confusion about which bank to choose. As we all know, small finance banks typically offer higher interest rates than public and private sector banks.
Deposits in small finance banks are also insured by the DICGC up to Rs 5 lakhs. On the other hand, it is usually better to avoid long-term fixed deposits because any financial crisis may require you to pay a penalty if you withdraw your deposits prematurely. As a consequence, investing in short-term deposits is always preferable because they can be renewed at maturity and allow you to counter interest rate risk. For short-term investors, particularly senior citizens, we have selected five small finance banks that are giving more than 7% returns on term deposits of less than Rs 2 crore maturing in 1 year.
Note: Interest rates on 1 year FDs are marked in bold.
Ujjivan Small Finance Bank
This small finance bank provides a one-of-a-kind deposit scheme known as Platina Deposit, which is a retail non-callable deposit product that does not allow for part closure or pre-closure. This deposit can be registered for a minimum of 12 months and a maximum of 60 months with a minimum deposit of Rs.20 lakhs and a maximum deposit of Rs.2 crores. The bank provides a 6.65 percent interest rate on deposits maturing in 12 months to the general public and a 7.40 percent interest rate to senior citizens. These rates are effective as of 7th January 2022.
| TENURE | Interest Rate (p.a.) (Under Rs. 2 Crores) |
|---|---|
| 12 Months | 6.65% |
| 12 Months and 1 Day to 19 Months | 6.15% |
| 19 Months and 1 Day to 24 Months | 6.75% |
| 24 Months and 1 Day to 989 Days | 6.65% |
| 990 Days | 6.90% |
| 991 Days to 36 Months | 6.65% |
| 3 Years and 1 Day to 5 Years | 6.40% |
| Additional Interest Rate for Resident Senior Citizens | 0.75% |
| Source: Bank Website |
Jana Small Finance Bank
Effective from 11th January 2022, Jana Small Finance Bank is offering an interest rate of 6.75% to regular customers and 7.55% to senior citizens on deposits maturing in 1 year or 12 months. These rates are applicable on deposits of less than Rs 2 Cr.
| Tenors | Regular FD Interest Rate (p.a.) | Senior Citizen FD Interest Rate (p.a.) |
|---|---|---|
| 7-14 days | 2.50% | 3.30% |
| 15-60 days | 3.00% | 3.80% |
| 61-90 days | 3.75% | 4.55% |
| 91-180 days | 4.50% | 5.30% |
| 181-364 days | 5.50% | 6.30% |
| 1 Year [365 Days] | 6.75% | 7.55% |
| > 1 Year - 2 Years | 6.75% | 7.55% |
| >2 Years - 3 Years | 6.75% | 7.55% |
| > 3 Year - < 5 Years | 6.75% | 7.55% |
| 5 Years [1825 Days] | 6.75% | 7.55% |
| > 5 Years - 10 Years | 6.00% | 6.80% |
| Source: Bank Website |
North East Small Finance Bank
North East Small Finance Bank is giving an interest rate of 6.75 percent to the general public and 7.25 percent to senior people on deposits maturing in one year beginning from January 27, 2022. These rates apply to deposits maturing between 366 - 729 days.
| Tenors | Regular FD Interest Rate (p.a.) | Senior Citizen FD Interest Rate (p.a.) |
|---|---|---|
| 7 - 14 Days | 3 | 3.5 |
| 15 - 29 Days | 3 | 3.5 |
| 30 - 45 Days | 3 | 3.5 |
| 46 - 90 Days | 3.5 | 4 |
| 91 - 180 Days | 4 | 4.5 |
| 181 - 365 Days | 5 | 5.5 |
| 366 - 729 Days | 6.75 | 7.25 |
| 730 - 1095 Days | 6.75 | 7.25 |
| 777 Days | 7 | 7.5 |
| 1096 - 1825 Days | 6.5 | 7 |
| 1826 - 3650 Days | 6.25 | 6.75 |
| Source: Bank Website |
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank is giving an interest rate of 6.50 percent to the general public and 7.00 percent to senior citizens on deposits maturing in 365 days to 699 days starting from January 20, 2022.
| Tenors | Regular FD Interest Rate (p.a.) | Senior Citizen FD Interest Rate (p.a.) |
|---|---|---|
| 7 Days to 45 Days | 3.00% | 3.50% |
| 46 Days to 90 Days | 3.25% | 3.75% |
| 91 Days to 180 Days | 4.00% | 4.50% |
| 181 Days to 364 Days | 5.75% | 6.25% |
| 365 Days to 699 Days | 6.50% | 7.00% |
| 700 Days to 999 Days | 6.75% | 7.25% |
| 1000 Days | 6.90% | 7.40% |
| 1001 Days upto 5 Years | 6.75% | 7.25% |
| Above 5 Years to 10 Years | 6.00% | 6.50% |
| Source: Bank Website |
ESAF Small Finance Bank
With effect from 20/12/2021, ESAF Small Finance Bank is giving a 6.50 percent interest rate to the general public and a 7 percent interest rate to senior citizens on deposits of less than Rs 2 crore maturing in 365 days and 366 days, respectively.
| Tenors | Regular FD Interest Rate (p.a.) | Senior Citizen FD Interest Rate (p.a.) |
|---|---|---|
| 7 days to 14 days | 4.00% | 4.50% |
| 15 days to 59 days | 4.50% | 5.00% |
| 60 days to 90 days | 5.25% | 5.75% |
| 91 days to 181 days | 5.50% | 6.00% |
| 182 days | 5.00% | 5.50% |
| 183 days to 363 days | 5.75% | 6.25% |
| 364 days | 5.25% | 5.75% |
| 365 days & 366 days | 6.50% | 7.00% |
| 367 days to 545 days | 6.00% | 6.50% |
| 546 days | 5.00% | 5.50% |
| 547 days to 727 days | 6.00% | 6.50% |
| 728 days | 5.25% | 5.75% |
| 729 days to 909 days | 6.25% | 6.75% |
| 910 days | 5.25% | 5.75% |
| 911 days to 1091 days | 6.25% | 6.75% |
| 1092 days | 5.25% | 5.75% |
| 1093 days to 1273 days | 5.75% | 6.25% |
| 1274 days | 5.25% | 5.75% |
| 1275 days -1455 days | 5.75% | 6.25% |
| 1456 days | 5.25% | 5.75% |
| 1457 days-1637 days | 5.75% | 6.25% |
| 1638 days | 5.25% | 5.75% |
| 1639 days-1819 days | 5.75% | 6.25% |
| 1820 days | 5.25% | 5.75% |
| 1821 days to 3653 days | 5.25% | 5.75% |
| Source: Bank Website |
