This Article is From Nov 28, 2020

Up To 8.2% Annual Return On Fixed Deposit? Read This

Primarily aimed at financial inclusion, small finance banks currently pay annual returns in range of 3.5-85 per cent on retail fixed deposits.

Up To 8.2% Annual Return On Fixed Deposit? Read This

Retail fixed deposits are term deposits up to Rs 2 crore

Small finance banks offer higher fixed deposits (FDs) compared with conventional commercial counterparts, such as State Bank of India, HDFC Bank, ICICI Bank and Kotak Mahindra Bank. Primarily aimed at financial inclusion, small finance banks - from the likes of Utkarsh, Ujjivan, Jana and Equitas - currently pay annual returns to the tune of 3.5-85 per cent on retail fixed deposits, which are fixed deposits up to Rs 2 crore. Fixed deposits, or term deposits, are financial instruments in which a sum of money is locked in for a pre-defined period of time for a "fixed" rate of interest.

Here are current interest rates of some popular small 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)

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.

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