No doubt, bank fixed deposits (FDs) are one of the safest and most preferred investment options available to Indians, especially senior citizens as they don’t like to take an unnecessary risk. Here the return earned is fixed and known at the time of investing, unlike equities. The minimum and maximum tenure offered for which an FD can be placed varies from one bank to another. Normally, one can invest in FD for a minimum period of 7 days and for a maximum of 10 years. Now let us go through some of the details related to the returns that is available on these FDs by going through the example of a few of the Private Sector Banks.
- As compared to commercial banks, small finance banks normally offer higher interest rates on fixed deposits. At present, several banks are offering interest rates ranging from 2.5 per cent to 7.5 per cent on FDs.
- Large banks such as State Bank of India (SBI), ICICI, HDFC Bank, Axis Bank and others provide FDs ranging from 7 days to 10 years. A number of small finance banks are offering almost 7 per cent interest to the general public and around 7.5 per cent to senior citizen across select maturities. Many banking experts are of the view that these banks rely on high-interest rates to shore up their deposits and compete with commercial banks.
- Furthermore, these lenders have reduced the interest rates in the Covid-19 pandemic. Earlier these banks were giving more than 9 per cent interest rate.
Jana Small Finance Bank
Jana Small Finance Bank offers interest rate in between 3.5 per cent and 7.50 per cent on FDs ranging from 7 days to 10 years. The bank gives an additional interest of 0.50 per cent to senior citizens. These deposits will earn an interest rate ranging from 4 per cent to 8 per cent for senior citizens. Jana Small Finance Bank gives the highest interest rate on deposits maturing in two years to three years. On these deposits, the lender gives an interest rate of 7.50 per cent and 8 per cent to customers and senior citizens respectively. The bank’s latest FD interest rates are with effect from August 11.
Latest FD interest rates
7-14 days 3.50%
15-60 days 4.25%
61-90 days 5.50%
91-180 days 6.00%
181-364 days 6.50%
1 Year [365 Days] 6.90%
Above 1 Year – 2 Years 7.00%
Above 2 Years-3 Years 7.50%
Above 3 Year- less than 5 Years 7.00%
5 Years 7.00%
Above 5 Years – 10 Years 6.50%
The interest rates are applicable to deposits less than Rs 2 crore, and in case of premature withdrawal of the deposit, interest will not be paid at the originally contracted rate, the bank mentioned on its website.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank offers interest rate ranging from 3.25 per cent to 8 per cent on FDs maturing in 7 days to 10 years. Senior citizens can earn an interest rate from 3.75 per cent to 8.50 on term deposits. FDs maturing in 700 days fetch the highest rate of interest on deposits. The bank gives 8 per cent interest rate on these deposits. Senior citizens get an additional 50 basis points on these deposits.
Latest FD interest rates
7 days to 45 days 3.00%
46 days to 90 days 3.25%
91 days to 180 days 4.00%
181 days to 364 days 6.00%
365 days to 699 days 6.75%
700 days 7.00%
701 days to 3652 days 6.75%
The rates are applicable for fresh fixed deposits as also for renewal of existing fixed deposits, the bank mention on its website. These deposits are with effect from August 14.
Fincare Small Finance Bank
The bank gives term deposits from 7 days to 7 years with interest ranging from 3.5 per cent to 5.61 per cent for the general public and 4.5 per cent to 7.50 per cent for senior citizens. FDs maturing in between 36 months 1 day and 42 months fetch the highest rate of interest on deposits. For 12 months to 18 months 6.50 per cent, 18 months 1 day to 21 months 6.80 per cent, 24 months 1 day to 30 months 6.85 per cent.
Latest FD interest rates
7 days to 45 days 3.50%
46 days to 90 days 3.70%
91 days to 180 days 4.10%
181 days to 364 days 5.30%
12 months to 15 months 6.50%
15 months 1 day to 18 months 6.50%
18 months 1 day to 21 months 6.80%
21 months 1 day to 24 months 6.80%
24 months 1 day to 30 months 6.85%
30 months 1 day to 36 months 6.90%
3 years 1 day to 42 months 7.00%
42 months 1 day to 48 months 6.50%
It is also worth mentioning here is that at the time of placing an FD, one must ensure to keep the following in mind:
- Check the rules regarding pre-mature withdrawals since Banks do sometimes give an option of FDs without premature withdrawal facility as well.
- In case of an emergency, you can break your FD before the maturity date. A penalty may be levied by the bank on premature withdrawals. The penalty amount differs from one bank to another. This also you must ascertain before investing.
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