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HDFC Bank Revises FD Interest Rates But Some Banks Pay Up To 9%!

For a period of one year on an FD less than Rs 1 crore, HDFC Bank now pays an interest rate of 6.85% as compared to 6.75% earlier.

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HDFC Bank Revises FD Interest Rates But Some Banks Pay Up To 9%!

Small finance banks pay up to 9% interest rate across various maturities on FDs less than Rs 1 crore.


HDFC Bank recently revised its fixed deposit interest rates by as much as 110 basis points (bps). One basis point is equal to one one-hundredth of one percentage point (0.01%). For a period of one year on an FD less than Rs 1 crore, HDFC Bank now pays an interest rate of 6.85 per cent as compared to 6.75 per cent earlier. On fixed deposits of two to five years, interest rates have been hiked from six to seven per cent.  However, on a fixed deposit for tenure of 1 year 1 day - 1 year 3 days, FD interest rates have been reduced by 25 bps.

The largest lender of the country State Bank of India (SBI) pays between 5.75 per cent and 6.75 per cent on fixed deposits of less than Rs 1 crore with maturity up to 10 years. Interest rates on fixed deposits of less than Rs 1 crore with maturity up to 10 years of ICICI Bank range from four to 6.5 per cent.

However, there are some banks which pay higher interest rates that the big these three big lenders of the country. Small finance banks (SFBs) like Fincare Small Finance Bank, ESAF Small Finance Bank, Ujjivan Small Finance Bank and AU Small Finance Bank pay up to 9 per cent interest rates across various maturities for general public on FDs less than Rs 1 crore.

Think of this: on a fixed deposit of less than Rs 1 crore for a period of one year, Fincare Small Finance Bank pays 8 per cent interest rate; ESAF Small Finance Bank pays 8.75 per cent; Ujjivan Small Finance Bank pays 8 per cent interest; AU Small Finance Bank pays 7 per cent; and Suryoday Small Finance Bank pays 8.5 per cent interest.

Why is there such a stark difference between the interest rates of the big lenders and small finance banks?
Small finance banks aim to serve the under-served population of the country. Their goal is to release credit to those who may not otherwise avail of it from the other big lenders.

"Established banks are yet to fully foray deep into the microfinance segment, and their size and scale may not allow them to recognise the needs of the micro segment of the society, which is as ambitious and as much in need of regular banking services. This gap is what the SFBs can easily cater to since SFBs have strong relationships with these customers as most of the transactions are at the client's place," said R Bhaskar Babu, Managing Director and CEO, Suryoday Small Finance Bank.

Small finance banks serve marginalised farmers, small businesses and other micro institutions. The branch network of SFBs is vast, and this can be leveraged to bring in financial inclusion much faster and in a more effective manner, said Mr Babu told NDTV. Small finance banks offer higher returns on savings and deposits than their larger peers.

Given below is a list of interest rates on fixed deposits offered by HDFC, SBI, ICICI Bank and ESAF Small Finance Bank, Suryoday Small Finance Bank, Ujjivan Small Finance Bank, AU Small Finance Bank, and Fincare Small Finance Bank:

Fixed deposit interest rates of HDFC Bank (hdfcbank.com):

The following are the latest interest rates on deposits less than Rs 1 crore:
 
TenureOld Interest RatesRevised Interest Rates
1 year6.75%6.85%
1 year 1 day - 1 year 3 days6.75%6.5
1 year 17 days -2 years6.27%7%
2 years 1 day to 2 years 15 days6%7%
2 years 17 days to 3 years6%7%
3 years 1 day to 5 years6%7%

Fixed deposit interest rates of SBI (sbi.co.in)
(All figures in % per annum)
 
TenorsExisting for Public w.e.f. 28.02.2018Revised For Public w.e.f. 28.03.2018Existing for Senior Citizens w.e.f. 28.02.2018Revised for Senior Citizens w.e.f. 28.03.2018
7 days to 45 days
5.75
5.75
6.25
6.25
46 days to 179 days
6.25
6.25
6.75
6.75
180 days to 210 days
6.35
6.35
6.85
6.85
211 days to less than 1 year
6.4
6.4
6.9
6.9
1 year to less than 2 year
6.4
6.4
6.9
6.9
2 years to less than 3 years
6.5
6.6
7
7.1
3 years to less than 5 years
6.5
6.7
7
7.2
5 years and up to 10 years
6.5
6.75
7
7.25

ICICI Bank fixed deposit interest rates according to its website, icicibank.com:
 
Tenure Period
Rate of Interest (% p.a.) w.e.f December 11, 2017
GeneralSenior Citizen*
7 days to 14 days44.5
15 days to 29 days4.254.75
30 days to 45 days5.56
46 days to 60 days5.756.25
61 days to 90 days66.5
91 days to 120 days66.5
121 days to 184 days66.5
185 days to 289 days6.256.75
290 days to less than 1 year6.57
1 year to 389 days6.67.1
390 days to 2 years6.757.25
2 years 1 day upto 5 years6.57
5 years 1 day upto 10 years6.57
5 Years Tax saver FD(Max upto Rs. 1.50 lac)6.57

Fixed deposit interest rates Of ESAF Small Finance Bank (esafbank.com)
 
Retail Term Deposit (Less than INR 1 Cr)Rate of Interest Applicable
from 1st April 2018
Domestic  
TenureNormalSenior Citizen
7 - 14 days5.75%6.25%
15 - 59 days5.75%6.25%
60 - 90 days6.50%7.00%
91 - 179 days6.75%7.25%
180 - 363 days7.50%8.00%
364 days5.60%6.10%
365 - 727 days8.75%9.25%
728 days6.80%7.30%
729 - 1091 days8.00%8.50%
1092 days5.66%6.16%
1093 - 1819 days7.00%7.50%
1820 days5.65%6.15%
1821 - 3652 days7.00%7.50%

(Also Read: SBI Bank Fixed Deposits Vs Post Office Term Deposit: Interest Rate, Income Tax Benefits, Other Details)

Fixed deposit interest rates Of  AU Small Finance Bank (aubank.in)

For Domestic Retail Fixed Deposits (for amounts less than INR 1 crore)
 
TENURE BUCKETSInterest Rate / Card Rate p.a. (%)Senior Citizen Interest Rate p.a. (%)
7 Days to 1 Month 15 Days5.50%6.00%
1 Month 16 Days to 3 Months6.75%7.25%
3 Months 1 Day to 6 Months6.90%7.40%
6 Months 1 Day  to 12 Months7.00%7.50%
12 Months 1 Day to 18 Months7.15%7.65%
18 Months 1 Day to 24 Months7.15%7.65%
24 Months 1 Day to 36 Months7.25%7.75%
36 Months 1 Day to 45 Months7.30%7.80%
45 Months 1 Day to 60 Months7.40%7.90%
Above 60 Months*7.25%7.75%

(Also Read: 5 Investment Schemes That Can Make You Money, Offer Security)

Fixed deposit interest rates Of Fincare Small Finance Bank (fincarebank.com)
 
TenureGeneral PublicSenior citizens
7 days to 45 days4%4.50%
46 days to 90 days4%4.50%
91 days to 180 days6%6.50%
181 days to 364 days7%7.50%
12 months to 15 months8%8.50%
15 months 1 day to 18 months8.25%8.75%
18 months 1 day to 21 months8.50%9%
21 months 1 day to 24 months8.75%9.25%
24 months 1 day to 36 months9.00%9.50%
3 years 1 day to 5 years8%8.50%
5 years 1 day to 7 years7%7.50%

Fixed deposit interest rates Of Ujjivan Small Finance Bank (ujjivansfb.in)
Below mentioned are the interest rates with effect from May 11, 2017
 
TENUREInterest Rate (pa) 
 (Under Rs. 1 Crore)
7 Days to 29 Days5.50%
30 Days to 89 Days6.25%
90 Days to 179 Days6.75%
180 Days to 364 Days7.50%
1 Year to 2 Years8.00%
2 Years and 1 Day to 3 Years7.50%
3 Years and 1 Day to 5 Years7.00%
5 Years and 1 Day to 10 Years6.50%
Additional Interest Rate for Senior Citizens0.50%

Fixed deposit interest rates of Suryoday Small Finance Bank (suryodaybank.com)
 
Fixed Deposit Rates < Rs.1 Cr.Suryoday SFB
Tenures 
7 days to 14 days4.00%
15 days to 45 days4.00%
46 days to 90 days5.00%
91 days to 180 days5.50%
181 days to 240 days7.50%
241 days to 364 days7.75%
12 months to 24 months8.50%
Above 24 months to 36 months8.75%
Above 36 months to 60 months7.75%
Above 60 months to 120 months7.25%

Fixed deposits, besides offering assured returns, also help investors earn fixed interest rates, which do not fluctuate according to market-linked adversities. Besides banks, non-banking financial companies also offer the options of fixed deposit accounts to customers.


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