2023-11-28 16:13:48
Many people who are hesitant to take risks often opt for Fixed Deposits (FD) to ensure the safety of their invested amount. And now, it seems that they have made the right choice.
A lot of small finance banks are currently offering interest rates of up to 8.6 percent on three-year fixed deposits. In fact, all the top 10 small finance banks are offering an average interest rate of 8 percent. Fixed Deposits provide an easily convertible source of cash and guaranteed interest income at regular intervals, making them an attractive option for those who are saving money for future emergencies.
The data presented here is based on information taken from the websites of the respective banks on November 22. It includes data for non-senior citizens investing less than Rs 1 crore for a period of three years and is calculated based on quarterly compound interest. The minimum investment amount varies depending on the type of term deposit.
Suryodaya Small Finance Bank leads the pack by offering 8.6 percent interest on three-year fixed deposits, the highest rate compared to other small finance banks. Investing Rs 1 lakh in this bank would result in a payout of Rs 1.29 lakh at the end of three years.
Jana Small Finance Bank and Utkarsh Small Finance Bank are not far behind, offering 8.5 percent interest on three-year fixed deposits. Similarly, investing Rs 1 lakh in either of these banks would yield Rs 1.29 lakh at the end of three years.
Fincare Small Finance Bank offers 8.11 percent interest on three-year fixed deposits, resulting in a payout of Rs 1.27 lakh for a Rs 1 lakh investment at the end of three years.
AU Small Finance Bank, Shivalik Small Finance Bank, and Equitas Small Finance Bank all offer 8 percent interest on three-year fixed deposits, with a Rs 1 lakh investment translating to a Rs 1.27 lakh payout at the end of three years.
North East Small Finance Bank offers a slightly lower rate of 7.75 percent interest on three-year fixed deposits, resulting in a Rs 1.26 lakh payout for a Rs 1 lakh investment at the end of three years.
It’s worth noting that small finance banks offer higher interest rates to attract more depositors. Additionally, the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the Reserve Bank of India, provides guaranteed sums for fixed deposits invested up to Rs.5 lakh.
So for those looking for a safe and profitable investment option, these high interest rates on fixed deposits from small finance banks may be worth considering.
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