At present, SBI offers an interest rate of 4.90% for a tenure between 1 year and 2 years for deposits up to Rs 2 crore.
New Delhi: Some banks are even offering over 7% interest rate on fixed deposits (FDs). Such an offer can easily lure investors who are unhappy with the fall in FD interest rates in the last few months. At present, SBI offers an interest rate of 4.90% for a tenure between 1 year and 2 years for deposits up to Rs 2 crore.
The return earned from a bank FD is fixed and known at the time of investing, unlike equities. The minimum and maximum tenure offered for which an FD can be placed varies from one bank to another. Normally, one can invest in FD for a minimum period of 7 days and for a maximum of 10 years.
As compared to commercial banks, small finance banks normally offer higher interest rates on fixed deposits. At present, several banks are offering interest rates ranging from 2.5 per cent to 7.5 per cent on FDs.
Large banks such as State Bank of India (SBI), ICICI, HDFC Bank, Axis Bank and others provide FDs ranging from 7 days to 10 years. A number of small finance banks are offering almost 7 per cent interest to the general public and around 7.5 per cent to senior citizen across select maturities. Many banking experts are of the view that these banks rely on high-interest rates to shore up their deposits and compete with commercial banks.
Furthermore, these lenders have lowered the interest rate in the Covid-19 pandemic. Earlier these banks were giving more than 9 per cent interest rate.
Jana Small Finance Bank
Jana Small Finance Bank offers interest rate between 2.5 per cent and 7.50 per cent on FDs ranging from 7 days to 10 years. The bank gives an additional interest of 0.50 per cent to senior citizens. These deposits will earn an interest rate ranging from 4 per cent to 8 per cent for senior citizens. Jana Small Finance Bank gives the highest interest rate on deposits maturing in two years to three years.
On these deposits, the lender gives an interest rate of 7.25 per cent and 7.75% per cent to customers and senior citizens respectively. The bank’s latest FD interest rates are with effect from December 22.
Latest FD interest rates
7-14 days 2.50%
15-60 days 3%
61-90 days 3.75%
91-180 days 4.5%
181-364 days 6%
1 Year[365 Days] 6.75%
> 1 Year – 2 Years 7.00%
>2 Years-3 Years 7.00%
> 3 Year- < 5 Years 7.25%
5 Years 7.00%
> 5 Years – 10 Years 6.50%
Above 5 Years – 10 Years 6.50%
The interest rates are applicable to deposits less than Rs 2 crore, and in case of premature withdrawal of the deposit, interest will not be paid at the originally contracted rate, the bank mentioned on its website.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank gives interest rate ranging from 3% to 7% to general public and 3.50% to 7.50% to senior citizens on FDs maturing in 7 days to 10 years. The bank gives the highest rate of interest on deposits with maturity period 700 days.
The bank gives 7.0% interest rate on these deposits. Senior citizens get an additional 50 basis points on these deposits.
Latest FD interest rates
7 days to 45 days 3.00%
46 days to 90 days 3.25%
91 days to 180 days 4.00%
181 days to 364 days 6.00%
365 days to 699 days 6.75%
700 days 7.00%
701 days to 3652 days 6.75%
The rates are applicable for fresh fixed deposits as also for renewal of existing fixed deposits, the bank mention on its website. These deposits are with effect from October 19.
Suryoday Small Finance Bank latest FD interest rates
Suryoday Bank FD rate ranges from 4% to 7.50% for general customers. The bank gives the highest rate of interest on deposits maturing in 5 years. These deposits will fetch an interest rate of 7.50%. Suryoday Bank’s latest FD interest rates are with effect from 15 September.
7 days to 14 days 4.00%
15 days to 45 days 4.00%
46 days to 90 days 5.00%
91 days to 6 months 5.50%
Above 6 months to 9 months 6.25%
Above 9 months to less than 1 Year 6.50%
1 Year to 2 years 6.75%
Above 2 Years to 3 Years 7.15%
Above 3 Years to less than 5 Years 7.25%
5 Years 7.50%
Above 5 years to 10 years 7%
Worth mentioning here is that at the time of placing an FD, one must check the rules regarding pre-mature withdrawals. Banks do sometimes give an option of FDs without premature withdrawal facility as well. However, in case of an emergency, you can break your FD before the maturity date. A penalty may be levied by the bank on premature withdrawals. The penalty amount differs from one bank to another.
