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These Banks Offer Up To 9.5% Returns On Deposits Below 1 Crore Rupees

Rate of return on fixed deposits of small finance banks is better than the FDs offered by traditional commercial banks.

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These Banks Offer Up To 9.5% Returns On Deposits Below 1 Crore Rupees

ESAF Small Finance Bank offers 8.75% interest on a fixed deposit of 365-727 days.


Small finance banks (SFBs) are focused on financial inclusion by provision of savings vehicles and supply of credit to small business units, small farmers, micro and small industries, and other unorganised sector entities. Small finance banks aim to run high-technology low-cost operations. They offer higher interest rates than mainstream commercial banks. Compared to small finance banks, lenders such as State Bank of India (SBI), HDFC Bank and ICICI Bank have a bigger reach but it is actually small finance banks - such as ESAF Small Finance Bank, AU Small Finance Bank and Utkarsh Small Finance Bank - that offer better interest rates on deposits.

Banks provide guaranteed returns on fixed deposits, which require customers to park their funds with the bank for a defined period of time. However, small finance banks provide better rate of return on fixed deposits compared to traditional commercial banks.

For example, SBI, the largest lender of the country, pays interest at the rate of 6.80 per cent on afixed deposits of a maturity period of one to less than two years. ESAF Small Finance Bank pays an 8.75 per cent interest on a fixed deposit of 365-727 days; AU Small Finance Bank pays an annual return of 8.25 per cent on a fixed deposit of 13 months one day to 18 months, and Utkarsh Small Finance Bank pays a return of 8.5 per cent on a fixed deposit of one year to 455 days.     

Given below are fixed deposit or FD interest rates of ESAF Small Finance Bank, AU Small Finance Bank and Utkarsh Small Finance Bank:

 

FD interest rates of ESAF Small Finance Bank

Tenure of depositRate of Interest effective from 1st November 2018
Normal RateRate for Senior Citizens
7 - 14 days5.50%6.00%
15 - 59 days5.50%6.00%
60 - 90 days6.25%6.75%
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%
Source: esafbank.com

 

(Also Read: Want To Open A Recurring Deposit Account? Check Out Interest Rates, Benefits Offered By SBI, Post Office)

FD interest rates of AU Small Finance Bank

TENURE BUCKETSResident / NRE* / NRO Interest Rate (%)Senior Citizens Resident / NRE* / NRO Interest Rate (%)
7 Days to 1 Month 15 Days5.50%6
1 Month 16 Days to 3 Months6.75%7.25
3 Months 1 Day to 6 Months6.90%7.4
6 Months 1 Day to 13 Months7.00%7.5
13 Months 1 Day to 18 Months8.25%8.75
18 Months 1 Day to 24 Months8.50%9
24 Months 1 Day to 36 Months7.75%8.25
36 Months 1 Day to 45 Months7.75%8.25
45 Months 1 Day to 60 Months8.00%8.5
60 Months 1 Day to 120 Months7.25%7.75
Source: aubank.in

 

(Also Read: India Post Launches Internet Banking Facility For Savings Account Users)

FD interest rates of Utkarsh Small Finance Bank

TENURESINTEREST RATES (% P.A.) - W.E.F September 27, 2018
General CustomersSenior Citizens
7 Days to 15 days3.50%4.00%
16 Days to 28 Days3.50%4.00%
29 Days to 45 Days4.00%4.50%
46 Days to 90 Days4.50%5.00%
91 Days to 120 Days5.00%5.50%
121 Days to 179 Days5.50%6.00%
180 Days to 210 Days6.00%6.50%
211 Days to 270 Days7.00%7.50%
271 Days to less than 1 Year7.50%8.00%
1 Year to 455 Days8.50%9.00%
456 Days to less than 2 years9.00%9.50%
2 Years to less than 3 Years7.85%8.35%
3 Years to less than 5 Years7.00%7.50%
5 Years8.00%8.50%
More than 5 Years to 10 Years7.00%7.50%
Source: utkarsh.bank

 

(Also Read: Looking To Invest In SBI Deposit Schemes? Here Are 10 Options For You)

India Post offers an annual return between 6.9 per cent and 7.8 per cent on fixed deposits across different terms.



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