There is speculation that the high-cost term deposit scheme could soon end, with the Reserve Bank potentially considering starting interest rate cuts as early as December 2024. Last month, the US Federal Reserve cut interest rates by 0.50%, and many central banks around the world have lowered interest rates. We are considering easing interest rates. This has raised expectations that the RBI will also reduce the repo rate, possibly in December. It will be interesting to see how the RBI responds to future interest rate cuts by central banks around the world.
However, if the Reserve Bank cuts interest rates in December, term deposit rates may also fall. For almost two years, FD investors across banks and NBFCs have been earning high interest rates on their deposits. In this article, we will take a look at the list of top 10 small finance banks offering the best fixed deposit interest rates to retail customers and senior citizens.
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Below are the top 10 banks offering the highest FD interest rates. Data source is paisabazaar.com.
Unity Small Finance Bank
Unity Small Finance Bank offers the best FD rates of 9% for general customers and 9.5% for senior citizens for a period of 1001 days. The interest rate is 7.85% for 1 year, 8.15% for 3 years, and 8.15% for 5 years. Seniors will receive an additional 0.50%, resulting in 8.35%, 8.65%, and 8.65% under the same conditions.
Northeast Small Business Finance Bank
The bank’s FD interest rate is capped at 9% for general customers and 9.5% for senior citizens for a period of 1111 days. Interest rates are 7% for 1 year, 9% for 3 years, and 6.25% for 5 years. Senior citizens will receive an additional 0.50%, making the tax rates 7.50%, 9.50%, and 6.75%.
Suryoday Small Finance Bank
The small finance bank offers FD interest rates of 8.65% for general customers and 9.15% for seniors with a tenor of 2 years and 2 days. The interest rate is 6.85% for 1 year, 8.60% for 3 years, and 8.25% for 5 years. Seniors will receive an additional 0.24% to 0.5%, resulting in yields of 7.09%, 8.84%, and 8.49%.
Shivalik Small Finance Bank
The small finance bank offers FD interest rates of 8.55% for general customers and 9.05% for senior citizens for a period of 18 to 24 months. The interest rate is 6% for 1 year, 7.50% for 3 years, and 6.50% for 5 years. If you add 0.50%, the rates for the elderly will be 6.50%, 8%, and 7%.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank’s FD interest rate is 8.5% for general customers and 9.10% for senior citizens for a period of 2-3 years. Interest rates are 8% for 1 year, 8.5% for 3 years, and 7.75% for 5 years. For senior citizens, an additional 0.60% is added, making the tax rates 8.60%, 9.10%, and 8.35%.
Jana Small Finance Bank
Jana Small Finance Bank’s FD interest rate is 8.25% for general customers and 8.75% for senior citizens with a tenor of 1 to 3 years. The interest rate is 8.25% for 1 year, 8.25% for 3 years, and 7.25% for 5 years. For senior citizens, an additional 0.50% will be added, making the tax rate 8.75%, 8.75%, and 7.75%.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank’s FD interest rate is 8.25% for general customers and 8.75% for senior citizens for one year. The interest rate is 8.25% for 1 year, 7.20% for 3 years, and 7.20% for 5 years. Seniors pay an additional 0.50%, making their tax rates 8.75%, 7.70%, and 7.70%.
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ESAF Small Finance Bank
The bank’s FD interest rate is 8.25% for general customers and 8.75% for senior customers, and the term is 2 to 3 years. The interest rate is 6% for 1 year, 6.75% for 3 years, and 6.25% for 5 years. For senior citizens, an additional 0.50% is added, making the tax rates 6.50%, 7.25%, and 6.75%.
Equitas Small Finance Bank
Equitas Small Finance Bank’s FD interest rate is 8.5% for general customers and 9% for senior citizens for a period of 444 days. The interest rate is 8.2% for 1 year, 8% for 3 years, and 7.25% for 5 years. Seniors pay an additional 0.5%, making their tax rates 8.7%, 8.5%, and 7.75%.
SBM Bank
SBM Bank’s FD interest rate is 8.25% for general customers and 8.75% for senior customers for a period of 18 months to 2 years and 3 days. The interest rate is 7.05% for 1 year, 7.3% for 3 years, and 7.75% for 5 years. Seniors will receive an additional 0.50% benefit, making their tax rates 7.55%, 7.80%, and 8.25%.
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