FD interest rate: Small finance banks pay an annual return of up to 9.5% on deposits below Rs 1 croreSmall finance banks - which are banks aimed primarily at financial inclusion - pay interest rates in a range of 3.5-9.5 per cent on FDs or fixed deposits of up to Rs 1 crore.
These lenders, such asEquitas Small Finance Bank, AU Small Finance Bank, Suryoday Bank, Jana Small Finance Bank, Fincare Small Finance Bank, ESAF Small Finance Bank and Utkarsh Small Finance Bank, provide a variety of maturity periods, from as short asseven days to as long as 10 years.In contrast to market-linked instruments such as equity or mutual funds, FDs provide a fixed return over a pre-defined maturity period, known as term or lock-in.
Financial planners often suggest fixed deposit for investors with a low risk appetite.Equitas Small Finance BankMaturity period (term)Interest rate with effect from July 5, 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 months8.00%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%(Source: equitasbank.com)AU Small Finance BankMaturity period (term)Interest rate with effect from October 10, 2018GeneralSenior citizen7 Days to 1 Month 15 Days5.50%6.00%1 Month 16 Days to 3 Months6.75%7.25%3 Months 1 Day to 6 Months6.90%7.40%6 Months 1 Day to 13Months7.00%7.50%13Months 1 Day to 18 Months8.25%8.75%18 Months 1 Day to 24 Months8.50%9.00%24 Months 1 Day to 36 Months7.75%8.25%36 Months 1 Day to 45 Months7.75%8.25%45 Months 1 Day to 60 Months8.00%8.50%60 Months 1 Day to 120 Months7.25%7.75%(Source: aubank.in)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)Jana Small Finance BankMaturity period (term)Interest rate with effect from October 17, 20187 days to 45 days6.00%46 days to 60 days6.50%61 days to 180 days7.00%181 days to 365 days8.00%More than 1 year up to 2 years8.25%More than 2 years up to 3 years8.50%More than 3 years up to 5 years8.00%More than 5 years up to 10 years7.00%(Source: janabank.com)Fincare Small Finance BankMaturity period (term)Interest rateGeneralSenior 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%7.50%(Source: fincarebank.com)ESAF Small Finance BankMaturity period (term)Interest rate with effect from April 1, 2018GeneralSenior 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 - 1091 days8.00%8.50%1092 days5.66%6.16%1093 - 1819 days7.00%7.50%1820 days5.65%6.15%1821 - 3652 days7.00%7.50%(Source: esafbank.com)Utkarsh Small Finance BankMaturity period (term)Interest rate with effect from September 27, 2018GeneralSenior 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 Days8.50%9.00%456 Days to less than 2 years9.00%9.50%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%(Source: utkarsh.bank)Across many maturities,small finance bankspay higher interest rates on FDs compared to their larger counterparts.