Small Finance Banks (SFBs) are a category of banks in India that were established to cater to the unbanked and underbanked sections of the population, including micro and small enterprises, low-income households, farmers, and small businesses. And they’re making a splash with deposit rates.
These banks are regulated by the Reserve Bank of India and are required to adhere to the same prudential norms and regulations as other banks. SFBs are attractive to depositors because they offer some of the highest deposit rates in the market.
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They’re able to do this by lending at higher rates than larger banks. Their higher-yielding assets help them pay depositors these above-average deposit rates which are now exceeding 9% in some cases.
Most SFBs today offer deposit rates above 8%, with senior citizens being offered 9%. But higher returns often come with higher risks which depositors must understand. Depositors should carefully evaluate the credibility and financial strength of SFBs before investing their money.
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Adhering to the DICGC insurance coverage limit of ₹5 lakh may help depositors keep their money in case their bank undergoes a crisis.
| Bank | Highest Rate | Tenor For Highest Rate | Senior Citizen Premium | Senior Citizen Rates |
| Suryoday Small Finance Bank | 9.10 | 999 days | 0.50 | 9.60 |
| Unity Small Finance Bank | 9.00 | 1001 days | 0.50 | 9.50 |
| Ujjivan Small Finance Bank | 8.45 | 560 days | 0.75 | 9.20 |
| Fincare Small Finance Bank | 8.41 | 1000 days | 0.60 | 9.01 |
| ESAF Small Finance Bank | 8.50 | 2 to < 3 years | 0.50 | 9.00 |
| Equitas Small Finance Bank | 8.50 | 888 days | 0.50 | 9.00 |
| Utkarsh Small Finance Bank | 8.25 | 1000-1500 days | 0.60 | 8.85 |
| Jana Small Finance Bank | 8.15 | 500 days | 0.70 | 8.85 |
| North East Small Finance Bank | 8.00 | 1111 days | 0.75 | 8.75 |
| Shivalik Small Finance Bank | 8.00 | 18 to 36 months | 0.50 | 8.50 |
| AU Small Finance Bank | 8.00 | > 24 months to 36 months | 0.50 | 8.50 |
| Capital Small Finance Bank | 7.60 | 12 months; 600 days | 0.65 | 8.25 |
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Compiled by BankBazaar.com. BankBazaar takes no guarantee for the accuracy of this information. Investors are advised to invest their money after assessing banking risks. Interest rates as advertised by the bank/company on May 22, 2023. Rates pertain to retail deposits. Rates will change as per the bank or company’s policies. Special FD schemes are for limited periods. Highest rates for each bank or company are mentioned here. For companies, the highest cumulative rate is mentioned. Some rates are as per special schemes which for limited periods. In some cases, higher rates may be available to super senior citizens, employees, bulk depositors, or non-callable depositors. Please contact your bank or preferred company for details of deposit schemes. BankBazaar.com is India’s largest fintech co-brand credit card issuer.
