Fixed Depsit rates: In December 2024, several banks, including Federal Bank, Karnataka Bank, Equitas Small Finance Bank, RBL Bank, and Bank of Maharashtra, changed their fixed deposit interest rates. These changes have implications for the general public’s and senior citizens’ savings. One of the most widely chosen investment options is a fixed deposit, where an individual deposits a lump sum amount for a set period of time with a bank. The deposited amount in the FD accrues interest at a fixed rate established upon opening the account.
During its December MPC meeting, the Reserve Bank of India (RBI) opted to maintain the repo rate at 6.50%, a rate that has been consistent since April 2023. This decision continues to present opportunities for fixed deposit (FD) investors, who can capitalize on the current high interest rates by locking in their deposits. Doing so allows investors to secure attractive returns in the long term.
It is advisable for investors to consider short- to medium-term fixed deposits in order to optimise their returns in the current rate environment. This approach is particularly wise if there is a possibility of a rate reduction in the near future.
Read More: Unity Bank Personal Loan: From eligibility to features; all you need to know
RBL Bank
RBL Bank has updated the interest rates on fixed deposits (FD) for amounts under Rs 3 crore. The new FD interest rates will be in effect from December 15, 2024, as stated on the bank’s official website. Following the revision, the bank is providing interest rates ranging from 3.50% to 8% on FDs for regular citizens and 8.50% interest rates on FDs for senior citizens. Additionally, the bank is offering interest rates up to 8.75% on FDs for super senior citizens (aged 80 and above).
RBL Bank FD Interest Rates (p.a.)
Highest slab rate 8.00% (for 500 days)
For 1 year 7.50%
For 2 years 7.80%
For 3 years 7.50%
For 4 years 7.10%
For 5 years 7.10%
Tax-Saving FD 7.10%
Karnataka Bank
Karnataka Bank has recently updated the interest rates for fixed deposits (FD) below Rs 3 crore, as per information available on the bank’s website. The new FD interest rates, which came into effect on December 2, 2024, now range between 3.50% to 7.5% for regular citizens and 3.5% to 8% for senior citizens.
Karnataka Bank FD Interest Rates (p.a.)
Highest slab rate 7.50% (for 375 days)
For 1 year 7.25%
For 2 years 7.25%
For 3 years 6.50%
For 4 years 6.50%
For 5 years 6.50%
Tax-Saving FD 6.50%
Federal Bank
Private lender Federal Bank recently announced a change in the interest rates for fixed deposits below Rs 3 crore. The new rates, which came into effect on December 16, 2024, can be found on the bank’s website. Following the revision, Federal Bank now offers interest rates ranging from 3% to 7.4% for general citizens, while senior citizens can avail of rates between 3.5% and 7.9% on fixed deposits.
Federal Bank FD Interest Rates (p.a.)
Highest slab rate 7.40% (for 777 days; 50 months)
For 1 year 7.00%
For 2 years 7.15%
For 3 years 7.10%
For 4 years 7.10%
For 5 years 7.10%
Tax-Saving FD 6.60%
Equitas Small Finance Bank
Equitas Small Finance Bank has recently updated its fixed deposit (FD) interest rates for deposits less than Rs 3 crore. These revised rates came into effect on December 2, 2024, as per the information available on the bank’s official website. Following the revision, the bank is now offering interest rates ranging from 3.50% to 8.25% for general citizens and 2.75% to 9% for senior citizens on their FDs.
Equitas Small Finance Bank Fixed Deposit Interest Rates (p.a.)
Highest slab rate 8.25% (for 888 days)
For 1 year 8.10%
For 2 years 7.75%
For 3 years 8.00%
For 4 years 7.50%
For 5 years 7.25%
According to the bank’s website, Resident Senior Citizens are eligible for an additional interest rate of 0.5% p.a. for all tenures, except for the 888 days tenure where a rate of 0.25% p.a. above the General Public Rate of 0.5% p.a. will apply. This variance is applicable specifically for Resident Senior Citizens as per the bank’s policy.
Read More: PNB Fixed Deposit Scheme: Check Returns on Investments of ₹1 Lakh, ₹2 Lakh, and ₹5 Lakh
Bank of Maharashtra
Bank of Maharashtra has updated the interest rates for fixed deposits (FD) under Rs 3 crore. The new FD interest rates, which came into effect on December 11, 2024, can be found on the bank’s website. Following the revision, the bank now offers interest rates ranging from 2.75% to 7.35% on FDs (including special deposits) for regular citizens, and 2.75% to 7.85% for senior citizens.
Bank of Maharashtra FD Interest Rates (p.a.)
Highest slab rate 7.35% (for 333 days)
For 1 year 6.75%
For 2 years 6.50%
For 3 years 6.50%
For 4 years 6.50%
For 5 years 6.50%
Tax-Saving FD 6.50%
Is it safe to invest in small finance banks?
Small finance banks, or SFBs, provide attractive interest rates on their fixed deposit (FD) schemes in order to attract a larger customer base when compared to major commercial banks. Some SFBs are even offering rates as high as 9.5% to senior citizens on their FDs, well above the rates offered by larger banking institutions.
Authorised by the Reserve Bank, small finance banks operate as specialized institutions catering to the financial needs of low-income individuals and underserved communities. Specializing in microfinancing, micro-enterprise services, and basic banking facilities, SFBs play a crucial role in providing essential financial services to those who may not have access to traditional banking systems.
In addition to their core services, small finance banks also offer savings accounts and remittance services to further include individuals who are marginalised from the traditional banking sector. By expanding financial inclusion, SFBs help bring individuals into the banking system, enabling them to participate in economic development opportunities.
Small Finance Banks Interest Rates (% p.a.) (as of 28 Dec, 2024)
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| AU Small Finance Bank | 8% | 7.25% | 7.5% | 7.25% |
| Capital Small Finance Bank Limited | 7.6 | 7.55 | 7.15 | 7.1 |
| Equitas Small Finance Bank | 8.25 | 8.1 | 8 | 7.25 |
| ESAF Small Finance Bank | 8.25 | 6.0 | 6.75 | 6.25 |
| Jana Small Finance Bank | 8.25 | 8.25 | 8.25 | 8.20 |
| North East Small Finance Bank | 9 | 7 | 9 | 6.25 |
| Shivalik Small Finance Bank Limited | 8.3 | 6 | 7.5 | 6.5 |
| Suryoday Small Finance Bank | 8.6 | 8.05 | 8.6 | 8.25 |
| Ujjivan Small Finance Bank | 8.25 | 8.25 | 7.2 | 7.2 |
| Unity Small Finance Bank | 9 | 7.85 | 8.15 | 8.15 |
| Utkarsh Small Finance Bank | 8.5 | 8 | 8.5 | 7.75 |
Source: Paisabazaar.com
