The interest rates on FDs vary according to the tenor of a fixed deposit.Fixed deposit (FDs), also known as term deposits, are secure investment instruments offered by private and public sector banks, small finance banks (SFBs), non-banking financial companies (NBFCs) and post offices.
The funds in these accounts are held for a fixed term, has a specified date of maturity and offer assured returns.From a fixed deposit, the money can be withdrawn only after the term has ended or by giving a predetermined number of days' notice.
The interest rates on FDs vary according to the tenor of a fixed deposit.Small finance banks (SFBs) offer higher interest rates on FDs as compared to the mainstream peers.
For instance, on deposits below Rs1 crore, the largest lender of the country, State Bank of India (SBI), offers 6.8 per cent interest for a tenure of one year to less than two years.
Ujjivan Small Finance Bank pays 7.5 per cent on a tenor of 180 days to 364 days, Jana Small Finance Bank offers 8.5 per cent for 181-365 days and Equitas Small Finance Bank pays 7.50 per cent for a period of 271 - 364 daysUjjivan Small Finance BankTenureInterest Rate (pa) (Under Rs.
1 Crore)7 Days to 29 Days5.50%30 Days to 89 Days6.25%90 Days to 179 Days6.75%180 Days to 364 Days7.50%1 Year to 2 Years8.30%2 Years and 1 Day to 734 Days7.50%735 Days8.25%736 Days to 798 Days7.50%799 Days8.60%800 Days to 3 Years7.50%3 Years and 1 Day to 5 Years7.00%5 Years and 1 Day to 10 Years6.50%Additional Interest Rate for Senior Citizens0.50%Jana Small Finance BankThese are the FD interest rates paid by the bank on fixed deposits below Rs 1 crore, according to its website - janabank.com:Equitas Small Finance BankMaturity period (term)Interest rate with effect from November 1, 20187 - 14 days5.00%15 - 29 days5.50%30 - 45 days6.00%46 - 62 days6.25%63 - 90 days6.25%91 - 120 days6.50%121 - 180 days6.50%181 - 210 days6.75%211 - 270 days6.75%271 - 364 days7.50%1 year to 18 months8.50%18 months 1 day to 2 years8.75%2 years 1 day to 3 years8.80%3 years 1 day to 4 years7.00%4 years 1 day to 5 years7.00%5 years 1 day to 10 years7.00%(Source: equitasbank.com)Suryoday BankMaturity period (term)Interest rate with effect from September 29, 2018GeneralSenior citizen7 days to 14 days4.00%4.50%15 days to 45 days4.00%4.50%46 days to 90 days5.00%5.50%91 days to 180 days5.50%6.00%181 days to 240 days7.50%8.00%241 days to less than 1 Year7.75%8.25%1 Year to 2 Years8.50%9.00%Above 2 Years to 3 Years8.75%9.25%950 Days*9.00%9.50%Above 3 Years to less than 5 Years8.00%8.50%5 Years8.25%8.75%Above 5 Years to 10 Years7.25%7.75%Source: suryodaybank.com)Post offices offer FD interest rates between 6.9-7.8 per cent.