Investors can still get up to 8.25% interest rate on their one-year fixed deposits (FD) in select small finance banks. This high interest rate is offered on deposits of less than Rs 3 crore. Here we have compared the highest interest rates currently available on FDs maturing in one year.
Read More: RBI to keep repo rate at 6.50% in Oct, cut by 25bps in December: Poll
Full list of small finance banks that are offering up to 8.25% interest rate on one-year FDs
Jana Small Finance Bank FD rate
Jana Small Finance Bank is offering an 8.25% interest rate on its FDs maturing in one year.
Ujjivan Small Finance Bank FD rate
Ujjivan Small Finance Bank is offering an interest rate of 8.25% on its FDs maturing in one year.
Equitas Small Finance Bank FD rate
Equitas Small Finance Bank is offering an interest rate of 8.2% on its FDs maturing in one year.
Read More: 6 primary factors that determine personal loan interest rate
| Name | Interest rate |
| Jana Small Finance Bank | 8.25% |
| Ujjivan Small Finance Bank | 8.25% |
| Equitas Small Finance Bank | 8.20% |
| Utkarsh Small Finance Bank | 8% |
| Unity Small Finance Bank | 7.85% |
| AU Small Finance Bank | 7.25% |
Source: paisabazaar.com as of September 25, 2024
Utkarsh Small Finance Bank FD rate
Utkarsh Small Finance Bank is offering an 8% interest rate on its FDs maturing in one year.
Unity Small Finance Bank FD rate
Unity Small Finance Bank is offering a 7.85% interest rate on its FDs maturing in one year.
AU Small Finance Bank FD rate
AU Small Finance Bank is offering a 7.25% interest rate on its FDs maturing in one year.
Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it’s recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen circumstances.
Charges levied in premature withdrawal of FD
According to the Ujjivan Small Finance Bank website as of September 28, 2024, “Early FD withdrawal usually comes with penalty charges. If you withdraw the amount within 6 months, you may have to pay a penalty of up to 1% on the prevailing rate basis of the tenure. For example, if you have booked an FD for 1 year, the prevailing interest rate as on 5 September 2024 is 8.25%. However, if you close the FD after 60 days from the time of deposit, you will receive 3.25% interest. Here’s how it’s calculated:
• Prevailing Interest Rate for 60 days: 4.25%
• Premature withdrawal penalty before 6 months: 1%
• Eligible interest rate: 3.25%.”
“Ujjivan SFB does not levy any premature penalty for withdrawals made after 6 months from the time of deposit. As per RBI guidelines, depositors can prematurely withdraw funds from non-callable FDs during specific situations like bankruptcy, court order, business liquidation, or the depositor’s demise. However, the penalty could be higher for premature withdrawal of non-callable Fixed Deposits,” said the bank on its website.
