Small finance banks often pay higher interest rates on deposits compared to commercial banks.
Fixed deposit (FDs), also known as term deposits, are secure financial instruments offered by private and public sector banks, small finance banks (SFBs), non-banking financial companies (NBFCs) and post offices. Small finance banks pay higher interest rates on fixed deposits compared to commercial banks. Small finance banks focus on financial inclusion by provision of savings vehicles and supply of credit to small business units, small farmers, micro and small industries, and other unorganised sector entities.
Here’s a comparison of fixed deposit (FD) interest rates paid by Ujjivan Small Finance Bank, AU Small Finance Bank, Jana Small Finance Bank and Suryoday Small Finance Bank:
Ujjivan Small Finance Bank
The following FD interest rates are applicable on deposits below Rs. 1 crore with effect from November 26, 2018, according to the bank’s website – ujjivansfb.in:
| Tenure | Interest Rate (pa) |
|---|---|
| (Under Rs. 1 crore) | |
| 7 Days to 29 Days | 5.50% |
| 30 Days to 89 Days | 6.25% |
| 90 Days to 179 Days | 6.75% |
| 180 Days to 364 Days | 7.50% |
| 1 Year to 2 Years | 8.30% |
| 2 Years and 1 Day to 734 Days | 7.50% |
| 735 Days | 8.25% |
| 736 Days to 798 Days | 7.50% |
| 799 Days | 8.60% |
| 800 Days to 3 Years | 7.50% |
| 3 Years and 1 Day to 5 Years | 7.00% |
| 5 Years and 1 Day to 10 Years | 6.50% |
The bank offers an additional 0.50 per cent interest rate for senior citizens, according to the bank’s website, www.ujjivansfb.in.
AU Small Finance Bank
The following FD interest rates are applicable on deposits below Rs. 1 crore with effect from January 14, 2019, according to the bank’s website – aubank.in:
| Tenure Buckets | General public | Senior Citizens |
|---|---|---|
| 7 Days to 1 Month 15 Days | 5.50% | 6.00% |
| 1 Month 16 Days to 3 Months | 6.75% | 7.25% |
| 3 Months 1 Day to 6 Months | 6.90% | 7.40% |
| 6 Months 1 Day to 13 Months | 7.00% | 7.50% |
| 13 Months 1 Day to 18 Months | 8.25% | 8.75% |
| 18 Months 1 Day to 24 Months | 8.25% | 8.75% |
| 24 Months 1 Day to 36 Months | 8.50% | 9.00% |
| 36 Months 1 Day to 45 Months | 7.75% | 8.25% |
| 45 Months 1 Day to 60 Months | 8.00% | 8.50% |
| 60 Months 1 Day to 120 Months | 7.25% | 7.75% |
Jana Small Finance Bank
The following FD interest rates are applicable on deposits below Rs. 1 crore, according to the bank’s website – janabank:
| Period | Regular FD Interest rate (p.a.) | Senior Citizen FD Interest rate (p.a.) |
|---|---|---|
| Effective from December 14, 2018 | Effective from January 30, 2019 | |
| 7-45 days | 6.00% | 6.60% |
| 46-60 days | 6.50% | 7.10% |
| 61-180 days | 7.00% | 7.60% |
| 181-365 days | 8.50% | 9.10% |
| > 1 year- 2 years | 8.50% | 9.10% |
| > 2 years – < 3 years | 8.50% | 9.10% |
| = 3 years | 9.00% | 9.60% |
| > 3 years- 5 years | 8.50% | 9.10% |
| > 5 years- 10 years | 7.00% | 7.60% |
Suryoday Small Finance Bank
The following FD interest rates are applicable on deposits below Rs. 1 crore with effect from September 29, 2019, according to the bank’s website – suryodaybank.com:
| Period | Interest Rate (per annum) | Senior Citizen Rate (per annum) |
|---|---|---|
| 7 days to 14 days | 4.00% | 4.50% |
| 15 days to 45 days | 4.00% | 4.50% |
| 46 days to 90 days | 5.00% | 5.50% |
| 91 days to 180 days | 5.50% | 6.00% |
| 181 days to 240 days | 7.50% | 8.00% |
| 241 days to less than 1 Year | 7.75% | 8.25% |
| 1 Year to 2 Years | 8.50% | 9.00% |
| Above 2 Years to 3 Years | 8.75% | 9.25% |
| 950 Days | 9.00% | 9.50% |
| Above 3 Years to less than 5 Years | 8.00% | 8.50% |
| 5 Years | 8.25% | 8.75% |
| Above 5 Years to 10 Years | 7.25% | 7.75% |
Post offices also offer the facility of fixed deposits.
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