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7 Places That Still Offer FD Interest Rates As High As 9.5%

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Lately, major banks, including the State Bank of India (SBI) have announced cuts in the interest rates offered on their fixed deposits (FDs), in line with the Reserve Bank of India's (RBI) sharp downward revision of 0.75 percent in repo rate to 4.40 percent.

While loans are now cheaper, income-earning opportunities from deposits have become scarce. Amid an uncertain economic outlook due to the COVID-19 pandemic, stock markets have crashed and individuals are looking for safer options to save and earn for the future.

 

The government also announced a cut in the interest offered on small savings schemes like PPF and senior citizen savings schemes by 70 to 140 basis points.

The rate cuts are especially hard for senior citizens in the country who largely depend on interest earnings from fixed deposits in banks for their regular expenses.

7 Places That Still Offer FD Interest Rates As High As 9.5%

FD interest rates in public sector banks have been revised lower to reflect the cut in RBI's repo rates. However, if you are looking for higher interest rates, small finance banks are still offering attractive rates. These institutions are licensed to operate by the Reserve Bank of India (RBI) and provide basic banking services like accepting deposits and lending.

Here are the highest interest rates offered by 6 such small finance banks:

1. Fincare Small Finance Bank

Formerly known as Disha Microfin, this bank provides the highest interest among those on the list. The rates mentioned are effective from 23 March 2020 and on deposits less than Rs 2 crore.

Tenure Interest rates Senior citizen interest rates
12 to 18 months 7.50% 8.00%
18 months 1 day to 24 months 7.75% 8.25%
24 months 1 day to 30 months 8.25% 8.75%
30 months 1 day to 36 months 8.50% 9.00%
36 months 1 day to 42 months 9.00% 9.50%
42 months 1 day to 5 years 8.00% 8.50%
5 years 1 day to 7 years 7.00% 7.50%

2. Utkarsh Small Finance Bank

Headquartered in Varanasi, the Utkarsh Small Finance Bank provides regular fixed deposit facilities for amounts as small as Rs 1,000. The top FD interest rates by the institution w.e.f 15 February 2020 for deposits less than Rs 2 crore:

 
Tenure Interest rates Senior citizen interest rates
181 days to 270 days 7.00% 7.50%
271 days to less than 1 year 7.25% 7.75%
1 year to 455 days 8.20% 8.70%
456 days to less than 2 years 8.50% 9.00%
2 years to 776 days 8.00% 8.50%
777 days 9.00% 9.50%
778 days to less than 3 years 8.00% 8.50%
3 years to less than 5 years 8.00% 8.50%
5 years 8.35% 8.85%
Over 5 years to 10 years 7.75% 8.25%

3. Suryoday Small Finance Bank

Best FD interest rates on this Navi Mumbai based small finance bank with effect from 2 April 2020 and on deposits less than Rs 2 crore are:

Tenure Interest rates Senior citizen interest rates
Above 6 months to 9 months 7.50% 8.00%
Above 9 months to less than 1 Year 7.75% 8.25%
1 Year to 2 years 8.00% 8.50%
Above 2 Years to 3 Years 8.25% 8.75%
Above 3 Years to less than 5 Years 8.00% 8.50%
5 Years 9.00% 9.25%
Above 5 years to 10 years 7.25% 7.75%

4. Equitas Small Finance Bank

The highest FD interest rates offered by the Chennai-based small finance bank with effect from 6 April 2020 for deposits less than Rs 2 crore:

Tenure Interest rates Senior citizen interest rates
271 - 364 days 7.25% 7.85%
1 year to 18 months 7.75% 8.35%
18 months 1 day to 2 years 7.45% 8.05%
2 years 1 day to 887 days 7.55% 8.15%
888 days 8.00% 8.60%
889 days to 3 years 7.55% 8.15%

5. ESAF Small Finance Bank

The Kerala-based small finance bank offers the following interest rates on fixed deposits less than Rs 2 crore with effect from 1 December 2019:

Tenure Interest rates Senior citizen interest rates
183 days to 363 days 7.50% 8.00%
365 days to 545 days 8.00% 8.50%
547 days to 727 days 8.00% 8.50%
729 days to 909 days 7.75% 8.25%
911 days to 1091 days 7.75% 8.25%
1093 days to 1273 days 7.30% 7.80%

6. Ujjivan Small Finance Bank

The institution accepts FDs as small as Rs 1,000 and in multiples of Rs 100, thereof. Interest rates with effect from 19 December 2019 on deposits less than Rs 2 crore:

Tenure Interest rates Senior citizen interest rates
180 Days to 364 Days 7.00% 7.50%
1 Year to 2 Years 8.00% 8.50%
2 Years and 1 Day to 734 Days 7.50% 8.00%
735 Days 8.00% 8.50%
736 Days to 798 Days 7.50% 8.00%
799 Days 8.10% 8.60%
800 Days to 3 Years 7.50% 8.00%
3 Years and 1 Day to 5 Years 7.00% 7.50%
5 Years and 1 Day to 10 Years 6.50% 7.00%

7. Bajaj Finserv

If you are open to non-banking financial services (NBFCs), Bajaj Finserv offers FD services with interest rates as high as 8.05 percent for senior citizens. However, the minimum deposit amount accepted is Rs 25,000. It last revised interest rates with effect from 5 March 2020 are:

Tenure (in months) Interest rates Senior citizen interest rates
12 - 23 7.60% 7.85%
24 - 35 7.65% 7.90%
36 - 47 7.70% 7.95%
48 - 60 7.80% 8.05%
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