Banks That Pay Up To 9.5% Interest On Fixed Deposits Below 1 Crore Rupees

Small finance banks often pay higher interest rates on fixed deposits than their larger peers. While commercial banks, such as State Bank of India (SBI), ICICI Bank and HDFC Bank, pay interest rates to the tune of 3.5-7.75 per cent on term deposits - or fixed deposits (FDs) - of below Rs 1 crore across different maturities, small finance banks pay interest rates in a range of 4-9.5 per cent. Small finance banks are aimed at financial inclusion, by way of savings vehicles and supply of credit to individuals, small business units, and micro and small industries in the unorganised sector through low-cost operations, according to the Reserve Bank of India (RBI).

Here's a comparison of interest rates paid by small finance banks such as Jana Small Finance Bank, Fincare Small Finance Bank, ESAF Small Finance Bank Equitas Small Finance Bank and Utkarsh Small Finance Bank on fixed deposits of up to Rs 1 crore in different maturity periods:

Jana Small Finance Bank

Here are interest rates paid by Jana SFB on regular fixed deposits with effect from September 8, according to its website - janabank.com:

Fincare Small Finance Bank

Fincare Small Finance Bank pays the following interest rates on FDs in different maturities, according to the bank's website - fincarebank.com:

ESAF Small Finance Bank

ESAF Small Finance Bank pays the following interest rates on fixed deposits with effect from April 1, according to its website - esafbank.com:

Equitas Small Finance Bank

Equitas Small Finance Bank pays the following interest rates on fixed deposits with effect from July 5, according to the bank's website - equitasbank.com:

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank pays the following interest rates on fixed deposits with effect from March 14, according to its website - utkarsh.bank:

Fixed deposits or term deposits provide fixed returns on income and, therefore, are suitable for investors with a low risk appetite, say wealth planners.