If we compare the interest rates offered by small finance banks to those of large commercial banks, we will find that SFBs offer up to 2% higher interest rates than large commercial banks. The reason being small finance banks are always on look out for a large customer base to remain competitive in the banking…
Best fixed deposits in May 2024: All banks and non-banking finance companies (NBFCs) revise their fixed deposit (FD) rates from time to time. In May 2024, scheduled commercial banks, small finance banks and non-bank lenders have made some changes in their fixed deposit rates for various tenures. Among all these categories, we will analyze the FD interest rates of top 10 small finance banks in May 2024. But before that we will know why small finance banks offer higher FD rates than large commercial banks.
Read More: Housing Loan: How to slash your home loan repayment time and costs
If we compare the interest rates offered by small finance banks to those of large commercial banks, we will find that SFBs offer up to 2% higher interest rates than large commercial banks. The reason being small finance banks are always on look out for a large customer base to remain competitive in the banking space. For this, they have to provide extra incentive to customers in form of higher rates on fixed deposits.
Among the small finance bank category, Unity Small Finance Bank’s fixed deposit rates stand out. The small finance bank is currently offering the best FD rate of up to 9% annually to general customers and up to 9.5% to senior citizens. North East Small Finance Bank is offering up to 9.25% interest on its FDs, followed by Suryoday Small Finance Bank, which is offering up to 9.1% rate to senior citizens. Utkarsh Small Finance Bank’s interest rates on FDs for senior citizens go up to 9.1% per annum. Shivalik Small Finance Bank, Equitas Small Finance Bank and Jana Small Finance Bank are also offering fixed deposit interest rates of 9% or above to senior citizens. Banks like Ujjivan Small Finance Bank, SBM Bank India and ESAF Small Finance Bank are other three banks among the top 10 small finance banks which are giving higher interest rates on their FDs.
Following are the top 10 small finance banks in terms of interest rates they are offering on their fixed deposits in may 2024, based on paisabazaar.com data.
Best FD Interest Rates by Small Finance Banks in May 2024:
Unity Small Finance Bank FD Rates
Unity Small Finance Bank is currently offering interest rates of 4.50%-9% annually on fixed deposits to general customers and 4.5%-9.5% to senior citizens on tenures ranging from 7 days to 10 years.
North East Small Finance Bank FD Rates
North East Small Finance Bank is offering FD interest rates of 3%-8.5% annually to general customers and 3.75%-9.25% to senior citizens, with tenures ranging from 7 days to 3650 days.
Suryoday Small Finance Bank FD Rates
Currently, Suryoday Small Finance Bank’s FD interest rates are in the range of 4%-8.65% annually for general customers and 4.5%-9.1% for senior citizens on tenures of 7 days to 10 years. The small finance bank is also offering interest rate on tax saving FDs at 8.25% annually for general customers and 8.75% for senior citizens on 5 years tenure.
Utkarsh Small Finance Bank FD Rates
Utkarsh Small Finance Bank is offering 4%-8.50% interest rates on FD plans to general customers and 4.75%-9.1% to senior citizens. The tenures range from 7 days to 10 years. On tax-saving FDs, the interest rates are up to 7.5% annually for general customers and 8.1% for senior citizen on 5 years tenure.
Read More: Want to invest in SGBs through demat route? Here’s a guide
Shivalik Small Finance Bank FD Interest Rates
This bank is offering FD interest rates of 3.5%-8.55% annually to general public and 4%-9.05% annually to senior citizens on tenures of 7 days to 10 years. On tax-saving FDs, it is offering 6.5% interest rate for general public and 7% for senior citizens on a tenure of 5 years.
Equitas Small Finance Bank offers FD interest rates
At present, Equitas Small Finance Bank FD customers can get interest rates of 3.5%-8.5% annually. For senior citizens, the rates go up to 9% per annum on tenures ranging from 7 days to 10 years. The bank is offering many other fixed deposit products for NRIs.
Jana Small Finance Bank FD Rates
Jana Small Finance Bank’s fixed deposit rates are in the range of 3%-8.5% per annum for general customers and 3.5%-9% per annum for senior citizens on tenures ranging from 7 days to 10 years. The bank is currently offering 7.25% annually in interest rates on tax-saving FDs for the general public and 7.75% for senior citizens on a tenure of 5 years.
Ujjivan Small Finance Bank FD Rates
Ujjivan Small Finance Bank’s FD interest rates stand at 3.75%-8.5% for general public and 4.25%-9% per annum for senior citizens for 7 days to 10 years tenures. The interest rate on tax-saving FDs is 7.2% annually for general customers and 7.7% for senior citizens for tenures of 5 years.
SBM Bank India FD Interest Rates
SBM Bank India is offering 4.25%-8.25% interest rates annually to general public and 4.75%-8.75% to senior citizens. The tenures range from 7 days to 10 years. Its tax-saving FD interest rate is 7.75% per annum for general public and 8.25% for senior citizens on 5 years tenure.
ESAF Small Finance Bank FD Rates
This small finance bank is offering interest rates of 4%-8.25% per annum for general customers and 4.5%-8.75% for senior citizens on 7 days to 10 years tenures. The bank also offers many other fixed deposit products for NRIs.
Investors must note that the FDs and other deposits are insured by the Depositor Insurance and Credit Guarantee Corporation (DICGC). DICGC is an RBI subsidiary, which insures cumulative deposits up to Rs 5 lakh made by each depositor.
Disclaimer: The above content is for informational purposes only. Please consult your financial advisor before investing.
