There is a bonanza for risk-averse investors who prefer to invest in fixed deposits. Small finance banks have lined up interest rates up to 8.6 percent on three-year FDs. The average interest rate of the top 10 small finance banks is 8 percent for FDs with a tenure of three years, according to data compiled by BankBazaar.
Fixed deposits offer liquidity and assured interest income at regular intervals. Thanks to the ample liquidity they promise, FDs can be useful while building an emergency corpus.
Data as on respective banks’ website on November 22, 2023. Small Finance Banks for which data was not available on their websites have not been considered. The data includes 3-year deposit of non-senior citizens for an amount below Rs 1 crore. The value is calculated on the basis of quarterly compounding of interest. Minimum investment amount may vary depending on the type of term deposits account.
Suryoday Small Finance Bank offers 8.6 percent interest on three-year FDs. Among small finance banks, it offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.29 lakh in three years.
Jana Small Finance Bank and Utkarsh Small Finance Bank offers 8.5 percent interest on three -year FDs. A sum of Rs 1 lakh invested grows to Rs 1.29 lakh in three years.
Jana Small Finance Bank and Utkarsh Small Finance Bank offers 8.5 percent interest on three -year FDs. A sum of Rs 1 lakh invested grows to Rs 1.29 lakh in three years.
Fincare Small Finance Bank offers 8.11 percent interest on three -year FDs. A sum of Rs 1 lakh invested grows to Rs 1.27 lakh in three years.
AU Small Finance Bank, Equitas Small Finance Bank, and Shivalik Small Finance Bank offers 8 percent interest on three -year FDs. A sum of Rs 1 lakh invested grows to Rs 1.27 lakh in three years.
North East Small Finance Bank offers 7.75 percent interest on three -year FDs. A sum of Rs 1 lakh invested grows to Rs 1.26 lakh in three years.
Small Finance Banks are offering higher interest rates to garner newer deposits. The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in fixed deposits of up to Rs 5 lakh.