These Banks Offer Up To 9.5% Returns On Deposits Below 1 Crore Rupees
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 deposit | Rate of Interest effective from 1st November 2018 | |
|---|---|---|
| Normal Rate | Rate for Senior Citizens | |
| 7 - 14 days | 5.50% | 6.00% |
| 15 - 59 days | 5.50% | 6.00% |
| 60 - 90 days | 6.25% | 6.75% |
| 91 - 179 days | 6.75% | 7.25% |
| 180 - 363 days | 7.50% | 8.00% |
| 364 days | 5.60% | 6.10% |
| 365 - 727 days | 8.75% | 9.25% |
| 728 days | 6.80% | 7.30% |
| 729 - 1091 days | 8.00% | 8.50% |
| 1092 days | 5.66% | 6.16% |
| 1093 - 1819 days | 7.00% | 7.50% |
| 1820 days | 5.65% | 6.15% |
| 1821 - 3652 days | 7.00% | 7.50% |
| Source: esafbank.com | ||
FD interest rates of AU Small Finance Bank
| TENURE BUCKETS | Resident / NRE* / NRO Interest Rate (%) | Senior Citizens Resident / NRE* / NRO Interest Rate (%) |
|---|---|---|
| 7 Days to 1 Month 15 Days | 5.50% | 6 |
| 1 Month 16 Days to 3 Months | 6.75% | 7.25 |
| 3 Months 1 Day to 6 Months | 6.90% | 7.4 |
| 6 Months 1 Day to 13 Months | 7.00% | 7.5 |
| 13 Months 1 Day to 18 Months | 8.25% | 8.75 |
| 18 Months 1 Day to 24 Months | 8.50% | 9 |
| 24 Months 1 Day to 36 Months | 7.75% | 8.25 |
| 36 Months 1 Day to 45 Months | 7.75% | 8.25 |
| 45 Months 1 Day to 60 Months | 8.00% | 8.5 |
| 60 Months 1 Day to 120 Months | 7.25% | 7.75 |
| Source: aubank.in | ||
FD interest rates of Utkarsh Small Finance Bank
| TENURES | INTEREST RATES (% P.A.) - W.E.F September 27, 2018 | |
|---|---|---|
| General Customers | Senior Citizens | |
| 7 Days to 15 days | 3.50% | 4.00% |
| 16 Days to 28 Days | 3.50% | 4.00% |
| 29 Days to 45 Days | 4.00% | 4.50% |
| 46 Days to 90 Days | 4.50% | 5.00% |
| 91 Days to 120 Days | 5.00% | 5.50% |
| 121 Days to 179 Days | 5.50% | 6.00% |
| 180 Days to 210 Days | 6.00% | 6.50% |
| 211 Days to 270 Days | 7.00% | 7.50% |
| 271 Days to less than 1 Year | 7.50% | 8.00% |
| 1 Year to 455 Days | 8.50% | 9.00% |
| 456 Days to less than 2 years | 9.00% | 9.50% |
| 2 Years to less than 3 Years | 7.85% | 8.35% |
| 3 Years to less than 5 Years | 7.00% | 7.50% |
| 5 Years | 8.00% | 8.50% |
| More than 5 Years to 10 Years | 7.00% | 7.50% |
| Source: utkarsh.bank | ||
India Post offers an annual return between 6.9 per cent and 7.8 per cent on fixed deposits across different terms.