INSUBCONTINENT EXCLUSIVE:
Small finance banks pay up to 9% interest rate across various maturities on FDs less than Rs 1 crore.
HDFC Bank recently revised its fixed deposit interest rates
by as much as 110 basis points (bps)
One basis point is equal to one one-hundredth of one percentage point (0.01%)
For a period of one year on an FD less than Rs 1 crore, HDFC Bank now pays an interest rate of 6.85 per cent as compared to 6.75 per cent
of 1 year 1 day - 1 year 3 days, FD interest rates have been reduced by 25 bps.The largest lender of the country State Bank of India (SBI)
pays between 5.75 per cent and 6.75 per cent on fixed deposits of less than Rs 1 crore with maturity up to 10 years
Interest rates on fixed deposits of less than Rs 1 crore with maturity up to 10 years of ICICI Bank range from four to 6.5 per cent.However,
there are some banks which pay higher interest rates that the big these three big lenders of the country
Small finance banks (SFBs) like Fincare Small Finance Bank, ESAF Small Finance Bank, Ujjivan Small Finance Bank and AU Small Finance Bank
pay up to 9 per cent interest rates across various maturities for general public on FDs less than Rs 1 crore.Think of this: on a fixed
deposit of less than Rs 1 crore for a period of one year, Fincare Small Finance Bank pays 8 per cent interest rate; ESAF Small Finance Bank
pays 8.75 per cent; Ujjivan Small Finance Bank pays 8 per cent interest; AU Small Finance Bank pays 7 per cent; and Suryoday Small Finance
Bank pays 8.5 per cent interest.Why is there such a stark difference between the interest rates of the big lenders and small finance
banksSmall finance banks aim to serve the under-served population of the country
Their goal is to release credit to those who may not otherwise avail of it from the other big lenders."Established banks are yet to fully
foray deep into the microfinance segment, and their size and scale may not allow them to recognise the needs of the micro segment of the
society, which is as ambitious and as much in need of regular banking services
This gap is what the SFBs can easily cater to since SFBs have strong relationships with these customers as most of the transactions are at
the client's place," said R Bhaskar Babu, Managing Director and CEO, Suryoday Small Finance Bank.Small finance banks serve marginalised
farmers, small businesses and other micro institutions
The branch network of SFBs is vast, and this can be leveraged to bring in financial inclusion much faster and in a more effective manner,
Small finance banks offer higher returns on savings and deposits than their larger peers.Given below is a list of interest rates on fixed
deposits offered by HDFC, SBI, ICICI Bank and ESAF Small Finance Bank, Suryoday Small Finance Bank, Ujjivan Small Finance Bank, AU Small
Finance Bank, and Fincare Small Finance Bank:Fixed deposit interest rates of HDFC Bank (hdfcbank.com):The following are the latest interest
year 17 days -2 years6.27%7%2 years 1 day to 2 years 15 days6%7%2 years 17 days to 3 years6%7%3 years 1 day to 5 years6%7%Fixed deposit
28.02.2018Revised For Public w.e.f
28.03.2018Existing for Senior Citizens w.e.f
28.02.2018Revised for Senior Citizens w.e.f
28.03.20187 days to 45 days5.755.756.256.2546 days to 179 days6.256.256.756.75180 days to 210 days6.356.356.856.85211 days to less than 1
year6.46.46.96.91 year to less than 2 year6.46.46.96.92 years to less than 3 years6.56.677.13 years to less than 5 years6.56.777.25 years
(% p.a.) w.e.f December 11, 2017GeneralSenior Citizen*7 days to 14 days44.515 days to 29 days4.254.7530 days to 45 days5.5646 days to 60
days5.756.2561 days to 90 days66.591 days to 120 days66.5121 days to 184 days66.5185 days to 289 days6.256.75290 days to less than 1
year6.571 year to 389 days6.67.1390 days to 2 years6.757.252 years 1 day upto 5 years6.575 years 1 day upto 10 years6.575 Years Tax saver
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%(: SBI Bank Fixed Deposits Vs Post Office Term Deposit:
(%)Senior Citizen Interest Rate p.a
Months7.00%7.50%12 Months 1 Day to 18 Months7.15%7.65%18 Months 1 Day to 24 Months7.15%7.65%24 Months 1 Day to 36 Months7.25%7.75%36 Months
1 Day to 45 Months7.30%7.80%45 Months 1 Day to 60 Months7.40%7.90%Above 60 Months*7.25%7.75%(: 5 Investment Schemes That Can Make You Money,
days4%4.50%46 days to 90 days4%4.50%91 days to 180 days6%6.50%181 days to 364 days7%7.50%12 months to 15 months8%8.50%15 months 1 day to 18
months8.25%8.75%18 months 1 day to 21 months8.50%9%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%8.50%5 years 1 day to 7 years7%7.50%Fixed deposit interest rates Of Ujjivan Small Finance Bank (ujjivansfb.in)Below mentioned
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 Years8.00%2 Years and 1
Day 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%Fixed
days4.00%15 days to 45 days4.00%46 days to 90 days5.00%91 days to 180 days5.50%181 days to 240 days7.50%241 days to 364 days7.75%12 months
to 24 months8.50%Above 24 months to 36 months8.75%Above 36 months to 60 months7.75%Above 60 months to 120 months7.25%Fixed deposits, besides
offering assured returns, also help investors earn fixed interest rates, which do not fluctuate according to market-linked adversities
Besides banks, non-banking financial companies also offer the options of fixed deposit accounts to customers.
