Investors can earn up to 8.25% interest on their deposits, which is a competitive rate in the current market. (AI Image) Highest Fixed Deposit Interest Rates: Small finance banks are now offering attractive interest rates on 1-year fixed deposits (FDs) below Rs 300 crore. Investors can earn up to 8.25% interest on their deposits, which is a competitive rate in the current market.
Maximum FD interest rate for 1 year fixed deposit
Among small finance banks, Jana Small Finance Bank and Ujjvan Small Finance Bank lead the pack with 8.25% interest rate on 1-year FD. Equitas Small Finance Bank follows suit with an interest rate of 8.2% over the same remaining term. Utkarsh Small Finance Bank has an interest rate of 8% on 1-year FDs, while Unity Small Finance Bank has a slightly lower rate of 7.85%. AU Small Finance Bank, on the other hand, offers an interest rate of 7.25% on deposits that mature in one year.
NameInterest RateJana Small Finance Bank8.25%Ujjivan Small Finance Bank8.25%Equitas Small Finance Bank8.20%Utkarsh Small Finance Bank8%Unity Small Finance Bank7.85%AU Small Finance Bank7.25%Source: Quoted data from Paisa Bazaar ET Report September 25, 2024
While considering investing in fixed deposits offered by small finance banks, it is important to note that these deposits come with a Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantee up to Rs. , experts recommend proceeding with caution. The risk profile of small finance banks can be slightly different compared to scheduled commercial banks.
To minimize potential risks, financial advisors have advised investors to limit investments in small finance bank FDs to the amount covered by DICGC insurance, ET said. the report states.
It is important to note that these interest rates are subject to change and may vary depending on bank policies and market conditions. Investors should carefully consider their financial objectives and risk tolerance before investing in a term deposit scheme.
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 analysts and economists predict the decision may be the last pause before the central bank begins a series of rate cuts.
As a result, bank fixed deposit interest rates are likely to decline gradually over the coming months.
