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Some small finance banks (SFBs) are offering up to 9 per cent interest rate on fixed deposits to attract investors. Successive interest rate hikes by the Reserve Bank of India (RBI) has helped fixed deposits (FDs) emerge as a strong investment instrument.
Leading the pack is Unity Small Finance Bank, offering an interest rate of 9.5 per cent to senior citizens for a fixed deposit for 1001 days as of October 25, 2023.
Interest rates on senior citizen fixed deposit offered by other SFBs, like Equitas Small Finance Bank, Esaf Small Finance Bank, Survoday Small Finance Bank, Jana Small Finance Bank, Fincare Small Finance Bank, and Utkarsh Small Finance Banks range from 9 to 9.11 per cent.
Considered a low risk investment option, fixed deposits are accounts opened with a bank wherein, the bank pays a guaranteed interest rate on the sums deposited for a stipulated period or tenure. FDs for senior citizens, available to individuals over the age of 60, usually offer higher return and additional benefits.
Take a look at the highest interest rates offered by different bank:
On the top of the list are small finance banks with interest rates ranging from 9.50 per cent to 8 per cent for senior citizen FDs.
Senior Citizen Fixed Deposit Rates | ||||||
Bank Name | Interest Rates (p.a.) | Additional rates offered to Super Senior Citizen* (over and above to senior citizen rates) | ||||
Highest slab | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | |||
% | Tenure | |||||
SMALL FINANCE BANKS | ||||||
AU Small Finance Bank | 8.50 | 2 years 1 day to 3 years | 7.25 | 8.50 | 7.75 | — |
Capital Small Finance Bank | 8.00 | 12 months | 8.00 | 7.65 | 7.60 | — |
Equitas Small Finance Bank | 9.00 | 444 days | 8.70 | 8.50 | 7.75 | — |
ESAF Small Finance Bank | 9.00 | 2 years to less than 3 years | 6.50 | 7.25 | 6.75 | — |
Fincare Small Finance Bank | 9.11 | 750 days | 8.10 | 8.60 | 8.60 | — |
Jana Small Finance Bank | 9.00 | Above 2 years to 3 years | 8.50 | 9.00 | 7.75 | — |
Suryoday Small Finance Bank | 9.10 | Above 2 years to 3 years | 7.35 | 9.10 | 8.75 | — |
Ujjivan Small Finance Bank | 8.75 | 1 year; 80 weeks | 8.75 | 7.70 | 7.70 | — |
Unity Small Finance Bank | 9.50 | 1001 days | 7.85 | 8.15 | 8.15 | — |
Utkarsh Small Finance Bank | 9.10 | 2 years to 3 years | 8.60 | 9.10 | 8.10 | — |
Source: Paisabazaar.com (Interest rates as of October 25, 2023)
For other fixed deposits as well, SBFs offer up to 9 per cent interest rate led by Unity Small Finance Bank.
Bank Fixed Deposit Rates | |||||
Bank Name | Interest Rates (p.a.) | ||||
Highest slab | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | ||
% | Tenure | ||||
SMALL FINANCE BANKS | |||||
AU Small Finance Bank | 8.00 | 2 years 1 day to 3 years | 6.75 | 8.00 | 7.25 |
Capital Small Finance Bank | 7.50 | 12 months | 7.50 | 7.15 | 7.10 |
Equitas Small Finance Bank | 8.50 | 444 days | 8.20 | 8.00 | 7.25 |
ESAF Small Finance Bank | 8.50 | 2 years to less than 3 years | 6.00 | 6.75 | 6.25 |
Fincare Small Finance Bank | 8.51 | 750 days | 7.50 | 8.00 | 8.00 |
Jana Small Finance Bank | 8.50 | Above 2 years to 3 years | 8.00 | 8.50 | 7.25 |
Suryoday Small Finance Bank | 8.60 | Above 2 years to 3 years | 6.85 | 8.60 | 8.25 |
Ujjivan Small Finance Bank | 8.25 | 1 year; 80 weeks | 8.25 | 7.20 | 7.20 |
Unity Small Finance Bank | 9.00 | 1001 days | 7.35 | 7.65 | 7.65 |
Utkarsh Small Finance Bank | 8.50 | 2 years to 3 years | 8.00 | 8.50 | 7.50 |
Source: Paisabazaar.com (Interest rates as of October 25, 2023)
Others like, Equitas Small Finance Bank, Esaf Small Finance Bank, Survoday Small Finance Bank, Jana Small Finance Bank, Fincare Small Finance Bank, and Utkarsh Small Finance offer returns ranging from 8.6 per cent to 7.5 per cent.
PRIVATE SECTOR BANKS | ||||||
Axis Bank | 7.75 | 5 years to 10 years | 7.20 | 7.60 | 7.75 | — |
Bandhan Bank | 8.35 | 500 days | 7.75 | 7.75 | 6.60 | — |
City Union Bank | 7.50 | 400 days | 7.00 | 6.75 | 6.50 | — |
CSB Bank | 7.60 | 444 days | 5.50 | 6.25 | 6.25 | — |
DBS Bank | 8.00 | 2 years 6 months 1 day to less than 3 years | 6.75 | 7.00 | 7.00 | — |
DCB Bank | 8.50 | 25 months to 26 months; 37 months to 38 months | 7.65 | 8.10 | 7.90 | — |
Federal Bank | 7.90 | 400 days | 7.30 | 7.10 | 7.25 | — |
HDFC Bank | 7.75 | 5 years 1 day to 10 years | 7.10 | 7.50 | 7.50 | — |
ICICI Bank | 7.65 | 15 months to 2 years | 7.20 | 7.50 | 7.50 | — |
IDFC First Bank | 8.00 | 1 year 1 day to 2 years | 7.00 | 7.75 | 7.50 | — |
IndusInd Bank | 8.25 | 1 year to 2 years | 8.25 | 8.00 | 8.00 | — |
Jammu & Kashmir Bank | 7.60 | 1 year to less than 2 years | 7.60 | 7.00 | 7.00 | — |
Karnataka Bank | 7.65 | 444 days | 7.35 | 6.90 | 6.90 | — |
Karur Vysya Bank | 8.00 | 444 days | 7.40 | 7.40 | 6.90 | — |
Kotak Mahindra Bank | 7.75 | 23 months to less than 2 years | 7.60 | 7.00 | 6.70 | — |
Nainital Bank | 7.55 | 400 days – Naini Plus 2023 Deposit Scheme | 7.20 | 6.75 | 6.25 | 0.10% on all tenures |
RBL Bank | 8.30 | 15 months to less than 2 years | 7.50 | 7.60 | 7.60 | 0.25% on all tenures |
SBM Bank India | 8.25 | 5 years | 7.55 | 7.80 | 8.25 | — |
South Indian Bank | 7.50 | 1 year 1 day | 7.10 | 7.00 | 6.50 | — |
Tamilnad Mercantile Bank | 7.50 | 1 year to less than 2 years | 7.50 | 7.00 | 7.00 | — |
Source: Paisabazaar.com (Interest rates as of October 25, 2023)
Leading private banks like ICICI Bank and HDFC Bank offer over 7.5 per cent interest on senior citizen FDs. However, highest interest is offered by DCB Bank at 8.50 per cent for a period of 25 months to 26 months and 37 months to 38 months.
PRIVATE SECTOR BANKS | |||||
Axis Bank | 7.10 | 15 months to less than 5 years | 6.70 | 7.10 | 7.00 |
Bandhan Bank | 7.85 | 500 days | 7.25 | 7.25 | 5.85 |
City Union Bank | 7.00 | 400 days | 6.75 | 6.50 | 6.25 |
CSB Bank | 7.35 | 444 days | 5.00 | ||
