Latest Bank Fixed Deposit Interest Rates: The Reserve Bank of India (RBI) announced a 25 basis point repo cut in February 2025. Following this decision, many fixed deposits investors are demanding FD schemes with maximum interest returns. Currently, many small finance banks provide interest rates reaching 9% for a specific time period.
Small Finance Banks (SFBs) represent a special banking category established by RBI, which are to promote financial inclusion by providing necessary banking facilities in the classes of society with adequate access to banking services. These banks mainly serve micro and small industries, small -scale farmers, minor business enterprises and individuals working in the unorganized sector.
Also read National Savings Certificate VS Bank Fixed Deposit: Tax Benefits, Interest Count and Comparison of TD
Fixed deposit interest rates in small finance banks
Various small finance banks are currently providing competitive interest rates on fixed deposits. According to the ET report, there is a detailed analysis of his offerings:
- Ekta Small Finance Bank leads the small finance banking sector with the highest interest rate. They provide 9% per year for deposit with a term of 1001-day. For one year fixed deposits, they provide 7.85% per year.
- Northst Small Finance Bank matches the rate of 9% per year for deposits between 18 months to 36 months to 36 months. His one year fixed deposit scheme is 7% per year interest rate.
- Suryoday For those considering small finance bank, they provide 8.6% per year on 5-year deposits. His one year fixed deposit scheme offers 8.25% per year.
- Utkarsh Small Finance Bank presents 8.5% per year for deposits for 2 to 3 years or 1500 days. He has a one -year fixed deposit rate of 8% per year.
- ESAF Small Finance Bank provides 8.38% interest rate for 888-day deposit. However, his one year fixed deposit scheme offers a relatively low rate of 6% per year.
- Currently, three banks are offering the highest interest rate of 8.25% per year.
- The Equitas Small Finance Bank provides a maximum FD interest of 8.25% per year per year for 888 days for 888 days, while 1 year FD interest rate maintains 8.1% per year.
- Jan Small Finance Bank is 8.25% per year for a period between 1 and 3 years, which matches its 1 year FD interest rate.
- Ujjivan Small Finance Bank saves 8.25% per year per year for 18 months, 8.1% per year for 1-year FD deposit.
- The AU Small Finance Bank presents an interest rate of 8.1% per year for a term of 18 months, its one year FD interest rate is 7.25% per year.
Source: Paisabazaar Data cited by ET on March 5, 2025
FD security about small finance banks:
The deposits in small finance banks are preserved by DICGC insurance up to Rs 5 lakh, although financial advisors take care when they pay in their fixed deposits. These banks work separately from traditional scheduled commercial banks, resulting in different risk ideas for their FD investment.
Financial experts recommend that investors should limit their small finance bank FD investment to live within DICGC insurance coverage. This approach ensures complete safety of the major amount and earns interest in terms of unexpected circumstances.
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