Image Source : FILE Fixed deposit Interest Rate 2024
Amid the ongoing high interest rate environment in the country, investors are capitalising on the opportunity to earn increased returns through Fixed Deposits (FDs). Traditionally favoured for their safety and reliability, FDs have remained a popular investment choice, particularly among senior citizens who benefit from additional interest rates. Several banks are now offering competitive FD rates, with some institutions providing up to 50 basis points (bps) extra for senior citizens. In this context, small finance banks are standing out by offering some of the highest FD rates available.
This article will explore the top 10 small finance banks that provide the most attractive FD rates, with certain banks offering rates as high as 9.50 per cent specifically for senior citizens. The FD interest rate varies from bank to bank. Almost all public sector and private banks including the post office, today offer Fixed Deposits. Although many instruments are available in the market that promises higher returns than the FDs, this conventional mode of investment is still preferred by a large population, especially in small towns and rural areas. This is mainly because FD is a risk-free instrument and also qualifies for deduction under section 80 (C) of the Income Tax Act, 1961.
List of banks offering up to 9.5% interest on FDs
BANK
FD Interest up to 5 years
Unity Small Finance Bank
7.85% – 9.50%
North East Small Finance Bank
7% – 9.50%
Suryoday Small Finance Bank
6.85% – 9.15%
Shivalik Small Finance Bank
6% – 9.05%
Equitas Small Finance Bank
8.20% – 9%
Utkarsh Small Finance Bank
8% – 8.75%
Jana Small Finance Bank
8.25% – 8.75%
Ujjivan Small Finance Bank
8.25% – 8.75%
RBL Bank
7.50% – 8.60%
DCB Bank
7.10% – 8.55%
About Fixed Deposit
A Fixed Deposit account is an investment where an individual deposits money for a predetermined period, with the interest rate remaining constant throughout the term agreed upon at account opening. Many banks enhance returns by offering an additional 0.5 per cent interest specifically for senior citizens, compared to regular customers. Furthermore, banks often provide the option to secure a collateral-free loan against FDs. Typically, the loan amount available is up to 75 per cent of the FD value, offering investors added liquidity. This arrangement allows individuals to invest in Fixed Deposits with confidence, knowing their returns are secure and they have access to funds if needed.
ALSO READ: SBI hikes fixed deposit interest rates up to 75 basis points, list of new rates released | Check here
