A fixed deposit is a financial instrument in which money is locked in for a pre-defined period of time.
India’s largest commercial banks, from the likes of State Bank of India and HDFC Bank, currently pay annual returns as high as 6.2-6.25 per cent to retail fixed depositors. Small finance banks, which are primarily aimed at financial inclusion, often pay even higher returns to their customers on fixed deposits up to Rs 2 crore. Fixed deposits — or term deposits — are financial instruments in which a sum of money is locked in for a pre-defined period of time for a “fixed” rate of interest.
Here are current interest rates of some popular small finance banks:
Ujjivan Small Finance Bank
| Maturity Period | Interest Rate With Effect From August 4 |
|---|---|
| Seven to 29 days | 3.05% |
| 30 to 89 days | 4.05% |
| 90 to 179 days | 4.80% |
| 180 to 364 days | 5.20% |
| One to two years | 6.50% |
| Two years and one day to three years | 6.05% |
| Three years and one day to five years | 5.80% |
| Five years and one day to 10 years | 5.55% |
| (Source: ujjivansfb.in) | |
According to its website, Ujjivan Small Finance Bank provides an additional 0.50% interest rate to senior citizens
Equitas Small Finance Bank
| Maturity Period | Interest Rate With Effect From November 5 |
|---|---|
| Seven to 14 days | 3.60% |
| 15 to 29 days | 3.60% |
| 30 to 45 days | 3.75% |
| 46 to 62 days | 4.25% |
| 63 to 90 days | 5.25% |
| 91 to 120 days | 5.60% |
| 121 to 180 days | 5.60% |
| 181 to 210 days | 5.75% |
| 211 to 270 days | 5.75% |
| 271 to 364 days | 6.20% |
| One year to 18 months | 6.75% |
| 18 months and one day to two years | 6.75% |
| Two years and one day to 887 days | 7.00% |
| 888 days | 7.00% |
| 889 days to three years | 7.00% |
| Three years and one day to four years | 6.75% |
| Four years and one day to five years | 6.75% |
| Five years and one day to 10 years | 6.75% |
| (Source: equitasbank.com) | |
According to its website, Equitas Small Finance Bank provides 0.50% extra return to senior citizen depositors (not applicable for NRE and NRO accounts)
Utkarsh Small Finance Bank
| Maturity Period | Interest Rate With Effect From October 19 | |
|---|---|---|
| General Public | Senior Citizen | |
| Seven to 45 days | 3.00% | 3.50% |
| 46 to 90 days | 3.25% | 3.75% |
| 91 to 180 days | 4.00% | 4.50% |
| 181 to 364 days | 6.00% | 6.50% |
| 365 days to 699 days | 6.75% | 7.25% |
| 700 days | 7% | 7.50% |
| 701 to 3,652 days | 6.75% | 7.25% |
| (Source: utkarsh.bank) | ||
Jana Small Finance Bank
| Maturity Period | Interest Rate With Effect From November 18 | |
|---|---|---|
| General Public | Senior Citizen | |
| Seven to 14 days | 3.00% | 3.50% |
| 15 to 60 days | 3.75% | 4.25% |
| 61 to 90 days | 4.50% | 5.00% |
| 91 to 180 days | 5.61% | 6.14% |
| 181 to 364 days | 6.66% | 7.17% |
| One year (365 days) | 7.08% | 7.61% |
| One to two years | 7.19% | 7.71% |
| Two to three years | 7.71% | 8.24% |
| Three to five years | 7.19% | 7.71% |
| Five years (1,825 days) | 7.19% | 7.71% |
| Five years to 10 years | 6.66% | 7.19% |
| (Source: janabank.com) | ||
AU Small Finance Bank
| Maturity Period | Interest Rate With Effect From August 14 | |
|---|---|---|
| General Public | Senior Citizen | |
| Seven days to one month and 15 days | 3.75% | 4.25% |
| One month and 16 days to three months | 4.25% | 4.75% |
| Three months and one day to six months | 5.00% | 5.50% |
| Six months and one day to 12 months | 5.50% | 6.00% |
| 12 months and one day to 15 months | 6.60% | 7.10% |
| 15 months and one day to 18 months | 6.50% | 7.00% |
| 18 months and one day to 24 months | 6.50% | 7.00% |
| 24 months and one day to 36 months | 6.75% | 7.25% |
| 36 months and one day to 45 months | 6.50% | 7.00% |
| 45 months and one day to 60 months | 6.50% | 7.00% |
| 60 months and one day to 120 months | 6.50% | 7.00% |
| (Source: janabank.com) | ||
The RBI has lowered the key benchmark rate — the repo rate — by a total 115 basis points (1.15 percentage point) so far in 2020.