Fixed deposits (FDs), also known as term deposits (TDs), are fixed-income instruments that yield guaranteed returns over a pre-defined period of lock-in. While commercial banks such as State Bank of India (SBI) currently provide interest rates up to 6.20 percent on FDs up to Rs 2 crore, few small finance banks provide higher returns on select maturity options.
In some instances, the highest FD card rate offered by some small finance banks are around 200-300 basis points (bps) more than the highest FD card rates offered by most PSUs and large private sector banks.
Small finance banks focus on financial inclusion by the provision of savings instruments, the supply of credit to small businesses, small farmers, micro and small industries and other unorganised sector entities.
Here's a comparison of fixed deposit (FD) interest rates offered by small finance banks:
Jana small finance bank
Jana small finance bank offers the following FD interest rates on deposits below Rs 2 crore:
| Tenure | Interest rate for public | Interest rate of senior citizens |
| 7 − 14 days | 3.50% | 4.00% |
| 15 − 60 days | 4.25% | 4.75% |
| 61 − 90 days | 5.50% | 6.00% |
| 91 − 180 days | 6.00% | 6.50% |
| 181 − 364 days | 6.50% | 7.00% |
| 1 year (365 days) | 6.90% | 7.40% |
| > 1 year − 2 years | 7.00% | 7.50% |
| > 2 year − 3 years | 7.50% | 8.00% |
| > 3 year − < 5 year | 7.00% | 7.50% |
| 5 years (1825 days) | 7.00% | 7.50% |
| > 5 year − 10 year | 6.50% | 7.00% |
AU small finance bank
AU small finance bank offers the following FD interest rates on deposits below Rs 2 crore:
| Tenure Bucket | Interest Rates for public | Interest Rates for senior citizens |
| 7 Days to 1 Month 15 Days | 3.75% | 4.25% |
| 1 Month 16 Days to 3 Months | 4.25% | 4.75% |
| 3 Months 1 Day to 6 Months | 5.00% | 5.50% |
| 6 Months 1 Day to 12 Months | 5.50% | 6.00% |
| 12 Months 1 Day to 15 Months | 6.60% | 7.10% |
| 15 Months 1 Day to 18 Months | 6.50% | 7.00% |
| 18 Months 1 Day to 24 Months | 6.50% | 7.00% |
| 24 Months 1 Day to 36 Months | 6.75% | 7.25% |
| 36 Months 1 Day to 45 Months | 6.50% | 7.00% |
| 45 Months 1 Day to 60 Months | 6.50% | 7.00% |
| 60 Months 1 Day to 120 Months | 6.50% | 7.00% |
Ujjivan small finance bank
Ujjivan small finance bank offers the following FD interest rates on deposits below Rs 2 crore:
| Tenure | Interest rates for public |
| 7 Days to 29 Days | 3.05% |
| 30 Days to 89 Days | 4.05% |
| 90 Days to 179 Days | 4.80% |
| 180 Days to 364 Days | 5.20% |
| 1 Year to 2 Years | 6.50% |
| 2 Years and 1 Day to 3 years | 6.05% |
| 3 Years and 1 Day to 5 Years | 5.80% |
| 5 Years and 1 Day to 10 Years | 5.55% |
| Additional Interest Rate for Senior Citizens | 0.50% |
(Edited by : Ajay Vaishnav)
