Bank FD Rates: This Bank Pays 9% Interest Rate, Senior Citizens Get 9.50%

A one-year fixed deposit in State Bank of India (SBI) fetches an interest rate of 6.40%; here's what small finance banks offer.

Bank FD Rates: This Bank Pays 9% Interest Rate, Senior Citizens Get 9.50%

Fincare Small Finance Bank offers an interest rate of 8% on 1-year fixed deposit of less than Rs 1 crore.

Consider this: a one-year fixed deposit of less than Rs 1 crore in State Bank of India (SBI) fetches an interest rate of 6.40 per cent. Compared to this, a similar deposit fetches an interest rate of 8 per cent in Fincare Small Finance Bank; 8.75 per cent in ESAF Small Finance Bank; 8 per cent in Ujjivan Small Finance Bank; and 7 per cent in AU Small Finance Bank. Leading public and private sector lenders like SBI, ICICI Bank, HDFC Bank, Punjab National Bank (PNB), Axis Bank, among others offer compelling interest rates on fixed deposits. However, there are some banks which offer equally competitive, rather better, interest rates but are not that famous.

(Also Read: Tax-Saving Fixed Deposits: SBI Vs HDFC Bank Vs ICICI Bank Vs Axis Bank)

Small finance banks provide financial inclusion to small businesses, micro and small industries, and farmers, among others. The aim of small finance banks is to lend credit to the underserved population of the country. They may not be popular among the general public but their interest rates are higher than leading banks.

Given below are interest rates on fixed deposits offered by four small finance banks - Fincare Small Finance Bank, ESAF Small Finance Bank, Ujjivan Small Finance Bank,and AU Small Finance Bank:

Fixed Deposit (FD) Interest Rates Of ESAF Small Finance Bank
Retail Term Deposit (Less than INR 1 Cr)Rate of Interest Applicable
from 1st April 2018
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 (FD) Interest Rates Of  AU Small Finance Bank

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 (FD) Interest Rates Of Fincare Small Finance Bank
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 (FD) Interest Rates Of Ujjivan Small Finance Bank

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 deposits or FDs, 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.