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Small Finance Banks Lower Fixed Deposit Rates: Check New Rates Here
To establish their foothold in the market, Small Finance Banks began their operations by offering a higher rate on bank fixed deposits in comparison to most public run and private sector bank in the country.
Pointers to note if you are opening Fixed Deposit scheme with Small Finance Banks in India
1. Small Finance banks function as per the rules and norms laid down by the apex bank of the country i.e. RBI. But herein as the focus of these banks is primarily financial inclusion and they have a differentiated business, RBI came up with separate operating guidelines for them. Nonetheless other stipulations such as with respect to capital adequacy, CRR and SLR are to be adhered by these banks similar to commercial banks in the country. So, there are being administered and regulated at par with other private and public banking entities in the country.
2. Interest wise FDs at Small Finance Bank still offer a better rate with interest rate ranging between 5.6-6.75% for a 1 to 3 year tenure. In comparison, FDs at private and public sector banks offer a maximum of 5.3% for a similar tenure.
3. Deposits at Small Finance Banks similar to other banks in the country are insured by the DICGC or Deposit Insurance Credit Guarantee Corporation to the maximum of Rs. 5 lakh. So, as these term or fixed deposits at SFBs are also backed by an insurance of up to Rs. 5 lakh, investing in them shall be secure to the extent of insured amount.
1-Year FD Rates At Various Small Finance Banks
| Small Finance Bank | New Interest rate for a 1-year FD | Senior citizen FD rates | Revised rate applicable from |
|---|---|---|---|
| Suryoday Small Finance Bank | 6.5% | 6.75% | Effective from June 21, 2021 |
| Capital Small Finance Bank | 6% | 6.5% | June 3, 2021 |
| Equitas Small Finance Bank | 6.35% | 6.85% | June 1, 2021 |
| Fincare Small Finance Bank | 5.6% | 6.1% | May 17, 2021 |
| Jana Small Finance Bank | 6.25% | 6.75% | May 7, 2021 |
| Utkarsh Small Finance Bank | 6.75% | 7.25% | October 19, 2020 |
As can be analyzed from the table above, the maximum interest rate on a 1-year FD among Small Finance banks is offered by Utkarsh Finance Bank of 6.75% and similarly senior citizens are also able to fetch a better rate of over 7.25% per annum.
3-Year FD Rates At Various Small Finance Banks
| Small Finance Bank | New Interest rate for a 3-year FD | Senior citizen FD rates | Revised rate applicable from |
|---|---|---|---|
| Suryoday Small Finance Bank | 6.25% | 6.5% | Effective from June 21, 2021 |
| Capital Small Finance Bank | 6% | 6.5% | June 3, 2021 |
| Equitas Small Finance Bank | 6.35% | 6.85% | June 1, 2021 |
| Fincare Small Finance Bank | 6.25% | 6.75% | May 17, 2021 |
| Jana Small Finance Bank | 6.5% | 7% | May 7, 2021 |
| Utkarsh Small Finance Bank | 6.75% | 7.25% | October 19, 2020 |
Here for the FD tenure of 3 years also Utkarsh Small Finance Bank is topping the list with a return of 6.75%.
5-Year FD Rates At Various Small Finance Banks
| Small Finance Bank | New Interest rate for a 5-year FD | Senior citizen FD rates | Revised rate applicable from |
|---|---|---|---|
| Suryoday Small Finance Bank | 6.25% | 6.5% | Effective from June 21, 2021 |
| Capital Small Finance Bank | 6% | 6.5% | June 3, 2021 |
| Equitas Small Finance Bank | 6.25% | 6.75% | June 1, 2021 |
| Fincare Small Finance Bank | 6% | 6.5% | May 17, 2021 |
| Jana Small Finance Bank | 6.5% | 7% | May 7, 2021 |
| Utkarsh Small Finance Bank | 6.75% | 7.25% | October 19, 2020 |
Here it is worth mentioning that Suryoday Finance Bank has brought about a steepest cut for FDs of 5 year tenure as earlier a 5-year FD with the bank earned 7.25% return p.a.
Special FD schemes of Small Finance Bank
Also, these small finance banks have rolled out some special tenure FDs that carry a slightly better rate. Say for instance, Capital Small Finance Bank offers 900 days FD that offers the highest rate of 6.25%. Likewise, Equitas Small Finance Bank offers the highest rate of 6.5% on 888 days deposit. Notably, 5-years 1 day to 10 years FD at the bank also offers the same rate i.e. 6.5%.
Utkarsh Small Finance Bank's 700 days FD is the only one offering 7% return and for senior citizens the return on it is 7.5%.
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