Fixed Deposit (FD) Interest Rates: Small Finance Banks Vs Post Office

Fixed deposits or FDs, which offer higher interest rates than savings bank accounts, are not only offered by leading banks like State Bank of India (SBI) but also by small finance banks and post offices across the country. FD interest rates of small finance banks like Equitas Small Finance Bank, Utkarsh Small Finance Bank and Jana Small Finance Bank are much higher than those of SBI, HDFC Bank, and ICICI Bank. Even if you compare FD interest rates of small finance banks with those offered by post offices, you will be surprised that these banks offer better interest rates.

(Also Read: India Post Payments Bank Zero Balance Accounts - 10 Things To Know)

Why are fixed deposit interest rates of small finance banks higher than peers?
"Small finance banks serve a niche area and in order to grow their scale, the most important segment for them is their FD customers, unlike the banking behemoths for whom the current account customers and corporate customers are relatively more important. Small finance banks do offer higher rates because at this point they are aggressively trying to scale up their deposit franchise," said Rahul Agarwal, Director Wealth Discovery/EZ Wealth.

Given below are fixed deposit interest rates of Equitas Small Finance Bank, Utkarsh Small Finance Bank, Jana Small Finance Bank and post offices:

Fixed deposit (FD) interest rates of Equitas Small Finance Bank
Fixed deposit Interest rates for Domestic/NRE/NRO (for INR) with effect from July 5, 2018

Tax will be deducted at source and that will be extra, according to equitasbank.com.

Fixed deposit (FD) interest rates of Utkarsh Small Finance Bank, according to utkarsh.bank:

Fixed deposit (FD) interest rates of Jana Small Finance Bank, according to janabank.com:

Fixed deposit (FD) interest rates of post offices

(Also Read: Post Office Saving Schemes Offer Interest Rates Between 4%-8.3%)

You can go into any post office and open a fixed deposit account via cash/ cheque. You can transfer this account to any post office and can open any number of accounts, according to indiapost.gov.in, the website of India Post.