A fixed deposit (FDs) is a secure financial instrument offered by banks, which fetch guaranteed returns. In a fixed deposit account, money can be invested for a higher rate of interest than savings accounts. One can deposit a lump sum of money in fixed deposits for a specific period, ranging from seven days to 10 years. While commercial banks pay interest rates in the range of 4-7.75 per cent to customers on FDs, small finance banks offer those between 3.5 per cent and 9.5 per cent. The interest rates on fixed deposit of large banks like State Bank of India, HDFC Bank are not as high as those offered by small finance banks such as Equitas Small Finance Bank, AU Small Finance Bank and Suryoday Bank.
Here's a comparison of interest rates paid by small finance banks on fixed deposits :
Equitas Small Finance Bank
Fixed Deposit for Domestic/NRE/NRO effective from November 1, 2018 as stated on equitasbank.com:
Senior citizens will get 0.75 per cent extra on the above mentioned rates, said the bank. However, the rates are not applicable for NRE/NROs.
Jana Bank
Rates for fixed deposits effective from November 3, 2018 as stated on janabank.com:
Senior citizens will get an additional 0.6 per cent interest over and above the FD rates, said the bank.
AU Small Finance Bank
Rates for fixed deposits effective from October 10, 2018 as stated on aubank.in:
Suryoday Bank
Rates for fixed deposits effective from September 29, 2018 as stated on suryodaybank.com:
Lenders also pay slightly higher interest rates on fixed deposits to senior citizens, compared to the general public.
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