Fixed Deposit Interest Rates up to 9%: These 5 Small Finance Banks Offer High FD Interest Rates on 3 Year Deposits – Checklist

Bank fixed deposit interest rates are likely to decline gradually over the coming months. (AI Image) Best FD Interest Rates: Fixed deposit (FD) investors have reason to rejoice as they can still secure deposit interest rates of around 9% with selected small finance banks. These higher interest rates are applicable on deposits below Rs 300 crore and are available to individuals below 60 years of age. The holding period for these attractive interest rate deposits is 3 years.
Below is a list of small finance banks offering interest rates of up to 9% on FDs with a maturity of 3 years, compiled by ET.
NorthEast Small Finance Bank offers an interest rate of 9% on FDs with a maturity of 3 years. Suryoday Small Finance Bank offers an interest rate of 8.6% on FDs with a maturity of 3 years. Utkarsh Small Finance Bank offers an interest rate of 8.5%. Jana Small Finance Bank offers an interest rate of 8.25% on FDs with a maturity of 3 years. Unity Small Finance Bank offers an interest rate of 8.15% on FDs with a maturity of 3 years.
Bank RateNorthEast Small Finance Bank9%Suryoday Small Finance Bank8.60%Utkarsh Small Finance Bank8.50%Jana Small Finance Bank8.25%Unity Small Finance Bank8.15%Source: Paisabazaar, September 11, 2024 as quoted by ET data
Although small finance banks offer attractive fixed deposit interest rates, it is important to note that investors should be cautious while investing in these FDs. Although the Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits up to Rs 500,000, the unique business model of small finance banks means that finance banks may take on slightly different risks compared to scheduled commercial banks. There is.
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To minimize potential risks, experts recommend limiting small finance banks’ investments in FDs to amounts within the DICGC coverage limits to ensure protection of both principal and interest. I am proposing.
The Reserve Bank of India (RBI) chose to keep the repo rate at current levels in its latest monetary policy review in August. But financial experts expect the decision to be the last lull before the central bank begins a series of rate cuts in the near future.
As a result, bank fixed deposit interest rates are likely to decline gradually over the coming months. Although FD investors have benefited from rising interest rates in the recent past, in a scenario characterized by falling interest rates, adopting the same investment approach may not yield comparable returns.
Experts say the current situation could be a perfect opportunity for individuals with surplus funds or FDs nearing maturity to protect their investments by locking in the current high interest rates.

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