Small finance banks pay interest rates in a range of 4-9.5% in fixed deposit (FD) accountsSmall finance banks often pay higher interest rates on fixed deposits than their larger peers.
While commercial banks, such as State Bank of India (SBI), ICICI Bank and HDFC Bank, pay interest rates to the tune of3.5-7.75 per cent on term deposits - or fixed deposits (FDs) - of below Rs 1 crore across different maturities, small finance banks pay interest rates in a range of4-9.5 per cent.Small finance banks are aimed at financial inclusion, by way of savings vehicles and supply of credit to individuals, small business units, and micro and small industries in the unorganised sector through low-cost operations, according to the Reserve Bank of India (RBI).Here's a comparison of interest rates paid by small finance banks such as Jana Small Finance Bank, Fincare Small Finance Bank, ESAF Small Finance Bank Equitas Small Finance Bank and Utkarsh Small Finance Bank on fixed deposits of up to Rs 1 crore in different maturity periods:Jana Small Finance BankHere are interest rates paid by Jana SFB on regular fixed deposits with effect from September 8, according to its website - janabank.com:TermInterest rate7 days to 45 days6.00%46 days to 60 days6.50%61 days to 180 days7.00%181 days to 365 days8.00%366* days8.25%367 days to 3 years8.50%More than 3 years up to 5 years8.00%More than 5 years up to 10 years7.00%Fincare Small Finance BankFincare Small Finance Bank pays the followinginterest rates on FDs in different maturities, according to the bank's website - fincarebank.com:TermInterest rate for general publicInterest rate for senior citizen7 days to 45 days4.00%4.50%46 days to 90 days4.00%4.50%91 days to 180 days6.00%6.50%181 days to 364 days7.00%7.50%12 months to 15 months8.00%8.50%15 months 1 day to 18 months8.25%8.75%18 months 1 day to 21 months8.50%9.00%21 months 1 day to 24 months8.75%9.25%24 months 1 day to 36 months9.00%9.50%3 years 1 day to 5 years8.00%8.50%5 years 1 day to 7 years7.00%7.50%ESAF Small Finance BankESAF Small Finance Bank pays thefollowing interest rates on fixed deposits with effect from April 1,according to its website - esafbank.com:Retail Term Deposit (Less than INR 1 Cr)Rate of Interest ApplicableTermTenureGeneral publicSenior citizen7 - 14 days5.75%6.25%15 - 59 days5.75%6.25%60 - 90 days6.50%7.00%91 - 179 days6.75%7.25%180 - 363 days7.50%8.00%364 days5.60%6.10%365 - 727 days8.75%9.25%728 days6.80%7.30%729 - 1,091 days8.00%8.50%1,092 days5.66%6.16%1,093 - 1,819 days7.00%7.50%1,820 days5.65%6.15%1,821 - 3,652 days7.00%7.50%Equitas Small Finance BankEquitas Small Finance Bank pays the following interest rates on fixed deposits with effect from July 5, according to the bank's website - equitasbank.com:TermInterest rate7 - 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 months8.00%18 months 1 day to 2 years7.75%2 years 1 day to 3 years7.75%3 years 1 day to 4 years7.00%4 years 1 day to 5 years7.00%5 years 1 day to 10 years7.00%Utkarsh Small Finance BankUtkarsh Small Finance Bank pays the following interest rates on fixed deposits with effect from March 14, according to its website - utkarsh.bank:TermInterest rateGeneral publicSenior citizen7 Days to 15 Days3.50%4.00%16 Days to 28 Days3.50%4.00%29 Days to 45 Days4.00%4.50%46 Days to 90 Days4.50%5.00%91 Days to 120 Days5.00%5.50%121 Days to 179 Days5.50%6.00%180 Days to 210 Days6.00%6.50%211 Days to 270 Days7.00%7.50%271 Days to Less than 1 Year7.50%8.00%1 Year to 455 Days8.25%8.75%456 Days to Less than 2 Years8.50%9.00%2 Years to Less than 3 Years7.85%8.35%3 Years to Less than 5 Years7.00%7.50%5 Years8.00%8.50%More than 5 Years to 10 Years7.00%7.50%Fixed deposits or term deposits provide fixed returns on income and, therefore, are suitable for investors with a low risk appetite, saywealth planners.