If you are considering a fixed deposit (FD) and want to earn more interest, Small Finance Banks (SFBs) could be a better option for you. While major banks like State Bank of India (SBI) generally offer FD interest rates between 6.25% and 6.45% for tenures of 1 to 3 years, SFBs attract customers with much higher returns—ranging from 7.1% to 7.77%.
Top Small Finance Banks and Their FD Rates
Jana Small Finance Bank:
Offers 7.77% interest on FDs for 1-3 years. An FD of ₹1 lakh will earn ₹7,770 per year.Suryoday Small Finance Bank:
Offers 7.75% interest, meaning a return of ₹7,750 annually on ₹1 lakh FD.Utkarsh Small Finance Bank:
Offers 7.65% interest, giving ₹7,650 per year on a ₹1 lakh deposit.Equitas Small Finance Bank & ESAF Small Finance Bank:
Both offer 7.6% interest. A ₹1 lakh FD here will earn ₹7,600 annually.Ujjivan Small Finance Bank:
Offers 7.45% interest, providing ₹7,450 per year on ₹1 lakh FD.AU Small Finance Bank:
Offers 7.1% interest, which means ₹7,100 annually for a ₹1 lakh FD.
Summary
If you are looking for higher FD returns compared to big banks like SBI, investing in FDs of Small Finance Banks can be a more rewarding choice.
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