In the realm of personal finance, where choices often abound, the spotlight has recently shifted to small finance banks (SFBs) and the enticing interest rates they offer on fixed deposits (FDs).
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These rates, typically higher than those of traditional banks by 1-2%, present a lucrative opportunity for investors seeking robust returns, particularly when the interest rates are expected to come down in 2024.
Consider the scenario where giants like SBI and HDFC Bank are offering a one-year FD at 6.8% and 6.60%, Utkarsh SFB and Shivalik SFB are offering 1 year FD at 8 and 8.1%, respectively. The promise of higher returns, however, comes with a caveat—a seemingly formidable hurdle in the form of mandatory account openings.
In a world where managing multiple bank accounts has become the norm, the prospect of adding yet another account acts as a deterrent for many potential investors. Can one unlock the benefits of an FD without navigating the labyrinth of opening a savings account?
Ajinkya Kulkarni, Co-Founder and CEO of Wint Wealth, says, “Several SFBs, such as Fincare, Shivalik, Utkarsh, and Suryoday, allow you to book an FD without opening a savings account.”
You can complete your KYC on Wint Wealth in 3-5 minutes and instantly book an FD of Fincare Small Finance Bank without opening a bank account. The bank offers 8.61% interest for the general public and 9.21% for senior citizens on a 750-day FD. FDs from all small finance banks are insured up to Rs 5 lakh per account, per accountholder, by Deposit Insurance and Credit Guarantee Corporation (DICGC). You can also explore AAA-rated NBFCs such as Bajaj Finance, which offers 8.35% per annum interest to the general public and 8.6% per annum to senior citizens on a 44-month FD. Even though AAA-rated NBFCs are considered very safe, there is no insurance protection from DICGC, explains Kulkarni.
All FDs from SFBs are fortified with insurance coverage up to Rs 5 lakh per account holder, courtesy of the DICGC. The security net is in place, offering peace of mind for those venturing beyond the conventional banks.
“We are in the process of offering FDs from SFBs. Once it goes live, individuals will be able to book an FD without the hassle of opening a bank account,” he declares.
This indicates at a financial landscape evolving towards simplicity, where the promise of attractive FD rates becomes a reality without the bureaucratic hoops of traditional banking, says Vijay Kuppa, CEO of InCred Money.
