Due to its numerous advantages, a fixed deposit (FD) is regarded as one of the safest investments and is the preferred investment vehicle for investors throughout. One of the most dependable financial products available is a fixed deposit, sometimes referred to as a term deposit. For example, depending on your selected interest payment plan, you receive safe, consistent, and fixed returns on a certain date. Interest payment plans are available on a monthly, quarterly, or half-yearly basis. With your FD investment, you can also choose to build up a lump sum and get cumulative interest payments.
According to the DCB Bank website, “Fixed Deposits (FDs) are generally safer than many other investment options, but they are not entirely risk-free. Investors should be aware of several risks, including interest rate risk, inflation risk, and default risk. These factors can affect the overall return and security of the investment, making it important to consider them when opting for FDs.”
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FD investors can get 9% interest rate: Full list of banks
On fixed deposits (FDs), investors can still get up to 9% interest rates in select small finance banks. This high interest rate is being offered for deposits less than Rs 3 crore and to individuals aged below 60 years old.
Unity Small Finance Bank offers the highest interest rate of 9% on tenure of 1001 days and NorthEast Small Finance Bank offers the highest interest rate of 9% on tenure between 546 days and 1111 days. While Suryoday Small Finance Bank offers the highest interest rate of 8.60% on deposits maturing between more than two years and three years.
Highest interest offered by small finance banks in December 2024
| Bank Name | Interest rate (%) | Tenure |
| AU Small Finance Bank | 8 | 18 months |
| Equitas Small Finance Bank | 8.25 | 888 days |
| ESAF Small Finance Bank | 8.25 | 2 years to less than 3 years |
| Jana Small Finance Bank | 8.25 | 1 year to 3 years |
| NorthEast Small Finance Bank | 9 | 546 days to 1111 days |
| Suryoday Small Finance Bank | 8.6 | Above 2 years to 3 years |
| Ujjivan Small Finance Bank | 8.25 | 12 months |
| Unity Small Finance Bank | 9 | 1001 days |
| Utkarsh Small Finance Bank | 8.5 | 2 years to 3 years; 1500 days |
Interest rates as of 26th December 2024
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How safe are small finance banks?
According to the AU Small Finance Bank website, “Like other types of banks in India, the RBI regulates and governs small finance banks. Therefore, all the banking norms, such as Statutory Liquidity Ratio Requirements, Cash Ratio Reserve Requirements, etc., apply to them. Moreover, the RBI also defines aspects like Eligibility Criteria and Mandatory Promoter Contribution for SFBs. In other words, there are stringent regulations that SFBs must adhere to for their operations. As the RBI regulates the segment, SFBs are as safe as any other type of bank.”
