These Banks Pay Up To 8.2% Return On Fixed Deposits

The smaller finance banks are offering interest rates in the range of 3.5-8.5 per cent on fixed deposits up to Rs 2 crore.

These Banks Pay Up To 8.2% Return On Fixed Deposits

These banks offer many maturity options for term deposits to customers

Smaller finance banks offer higher fixed deposits (FDs) as compared to their bigger counterparts, such as HDFC Bank, Punjab National bank, State Bank of India. Small finance banks are mostly niche banks in the country and are majorly aimed at financial inclusion. These banks include Equitas, Ujjivan, Jana, and Utkarsh, and are offering interest rates ranging between 3.5-8.5 per cent per annum on retail fixed deposits (fixed deposits up to Rs 2 crore). These banks mostly cater to smaller business units, micro and small industries, and small farmers. These banks offer many maturity options for term deposits to customers, beginning from seven days.

Here is a comparison of fixed deposits interest rates offered by smaller finance banks:

Ujjivan Small Finance Bank

Maturity PeriodInterest Rate With Effect From August 4
Seven to 29 days3.05%
30 to 89 days4.05%
90 to 179 days4.80%
180 to 364 days5.20%
One to two years6.50%
Two years and one day to three years6.05%
Three years and one day to five years 5.80%
Five years and one day to 10 years5.55%
(Source: ujjivansfb.in)

According to its website, Ujjivan Small Finance Bank provides an additional 0.50% interest rate to senior citizens 

Equitas Small Finance Bank

Maturity PeriodInterest Rate With Effect From November 5
Seven to 14 days3.60%
15 to 29 days3.60%
30 to 45 days3.75%
46 to 62 days4.25%
63 to 90 days5.25%
91 to 120 days5.60%
121 to 180 days5.60%
181 to 210 days5.75%
211 to 270 days5.75%
271 to 364 days6.20%
One year to 18 months6.75%
18 months and one day to two years6.75%
Two years and one day to 887 days7.00%
888 days7.00%
889 days to three years7.00%
Three years and one day to four years6.75%
Four years and one day to five years6.75%
Five years and one day to 10 years6.75%
(Source: equitasbank.com)

According to its website, Equitas Small Finance Bank provides 0.50% extra return to senior citizen depositors (not applicable for NRE and NRO accounts)

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Utkarsh Small Finance Bank

Maturity PeriodInterest Rate With Effect From October 19
General PublicSenior Citizen
Seven to 45 days3.00%3.50%
46 to 90 days3.25%3.75%
91 to 180 days4.00%4.50%
181 to 364 days6.00%6.50%
365 days to 699 days6.75%7.25%
700 days7%7.50%
701 to 3,652 days6.75%7.25%
(Source: utkarsh.bank)

Jana Small Finance Bank

Maturity PeriodInterest Rate With Effect From November 18
General PublicSenior Citizen
Seven to 14 days3.00%3.50%
15 to 60 days3.75%4.25%
61 to 90 days4.50%5.00%
91 to 180 days5.61%6.14%
181 to 364 days6.66%7.17%
One year (365 days)7.08%7.61%
One to two years7.19%7.71%
Two to three years 7.71%8.24%
Three to five years7.19%7.71%
Five years (1,825 days)  7.19%7.71%
Five years to 10 years 6.66%7.19%
(Source: janabank.com)

Meanwhile, the country's top banks including State Bank of India, Axis Bank, Punjab National Bank and HDFC Bank offer interest rates up to 5.50 per cent on fixed deposits at present.