Small finance banks provide a variety of fixed deposit lock-in options to their customers
While commercial banks currently provide interest rates up to 6.2 per cent on retail fixed deposits - or term deposits up to Rs 2 crore, and the post office up to 6.7 per cent, few banks provide higher returns on select maturity options. These are small finance banks, which are lenders focused primarily on financial inclusion. Just like their larger counterparts, these banks also provide a variety of maturity options starting from seven days to as long as 10 years.
Small finance banks from the likes of Ujjivan, Equitas, Utkarsh, AU and Jana offer annual returns of 3.5-interest rates to the tune of 3.05-8.5 per cent per annum on retail fixed deposits, according to their websites.
Here's a comparison of interest rates offered on fixed deposits by small finance banks:
Equitas Small Finance Bank
| Maturity Period | Interest Rate With Effect From June 1 |
|---|---|
| Seven to 14 days | 3.60% |
| 15 to 29 days | 3.60% |
| 30 to 45 days | 4.10% |
| 46 to 62 days | 4.60% |
| 63 to 90 days | 5.60% |
| 91 to 120 days | 5.85% |
| 121 to 180 days | 5.85% |
| 181 to 210 days | 6.10% |
| 211 to 270 days | 6.10% |
| 271 to 364 days | 6.60% |
| One year to 18 months | 7.10% |
| 18 months and one day to two years | 7.10% |
| Two years and one day to 887 days | 7.15% |
| 888 days | 7.35% |
| 889 days to three years | 7.15% |
| Three years and one day to four years | 6.75% |
| Four years and one day to five years | 6.75% |
| Five years and one day to 10 years | 6.75% |
| (Source: equitasbank.com) | |
Equitas Small Finance Bank provides a 60-basis-point higher return to senior citizen depositors (not applicable for NRE and NRO accounts), according to its website.
Ujjivan Small Finance Bank
| Maturity Period | Interest Rate With Effect From August 4 |
|---|---|
| Seven to 29 days | 3.05% |
| 30 to 89 days | 4.05% |
| 90 to 179 days | 4.80% |
| 180 to 364 days | 5.20% |
| One to two years | 6.50% |
| Two years and one day to three years | 6.05% |
| Three years and one day to five years | 5.80% |
| Five years and one day to 10 years | 5.55% |
| (Source: ujjivansfb.in) | |
Ujjivan Small Finance Bank provides a 50-basis-point (0.5 percentage point) higher return to senior citizens, according to its website.
Jana Small Finance Bank
| Maturity Period | Interest Rate With Effect From July 13 | |
|---|---|---|
| General Public | Senior Citizen | |
| Seven to 14 days | 4.50% | 5% |
| 15 to 60 days | 5.25% | 5.75% |
| 61 to 90 days | 6.25% | 6.75% |
| 91 to 180 days | 6.50% | 7% |
| 181 to 364 days | 6.75% | 7.25% |
| One year (365 days) | 7.25% | 7.75% |
| One to three years | 7.50% | 8% |
| More than three years to less than five years | 7% | 7.50% |
| Five years (1,825 days) | 7.25% | 7.75% |
| Five to 10 years | 6.50% | 7% |
| (Source: janabank.com) | ||
Utkarsh Small Finance Bank
| Maturity Period | Interest Rate With Effect From July 3 | |
|---|---|---|
| General Public | Senior Citizen | |
| Seven to 45 days | 3.50% | 4% |
| 46 to 90 days | 4.00% | 4.50% |
| 91 to 180 days | 4.50% | 5% |
| 181 to 180 days | 6.50% | 7% |
| 365 days to 699 days | 7.75% | 8.25% |
| 700 days | 8% | 8.50% |
| 701 to 3,652 days | 7.75% | 8.25% |
| (Source: utkarsh.bank) | ||
AU Small Finance Bank
| Maturity Period | Interest Rate With Effect From July 14 |
|---|---|
| Seven days to one month and 15 days | 4.00% |
| One month and 16 days to three months | 4.50% |
| Three months and one day to six months | 5.50% |
| Six months and one day to 12 months | 6.00% |
| 12 months and one day to 15 months | 7.05% |
| 15 months and one day to 18 months | 7.00% |
| 15 months and one day to 18 months | 7.00% |
| 24 months and one day to 36 months | 7.25% |
| 36 months and one day to 45 months | 7.00% |
| 45 months and one day to 60 months | 7.00% |
| 60 months and one day to 120 months | 7.00% |
| (Source: aubank.in) | |
Just like the country's top commercial banks, small finance banks also offer a variety of maturity options for term deposits to their customers, starting from seven days to as long as 10 years.
