All investors new to the market want to invest their money in safer instruments though the return is very low. Obviously, the well known, low risk and highly liquid instrument is Fixed Deposit. But the less known fact is fixed deposits are not only offered by nationalized banks and private banks; there are small finance banks and Non banking financial institutions which offers deposits with better interest rates, in particular small finance banks attracts more investments in recent days.
Small finance banks were setup based on the recommendations of Raghuram Rajan committee to perform financial reforms in the country. It was setup primarily to carry out financial inclusion in the country. Check out the best interest rates offered by these banks,
Interest rate for deposits offered by Small Finance Banks in India
|Small Finance Banks||Interest Rate (% p.a.) for general customers||Interest Rate (%p.a.) for senior citizens||Official Link (To check tenure and other details)|
|AU Small Finance Bank||6.25% to 7.60%||6.75% to 8.10%||Click here to check other details from official bank site|
|Equitas Small Finance Bank||5.00% to 7.25%||0.5% additional rate offered for senior citizens||Click here to check other details from official bank site|
|Utkarsh Small Finance Bank||3.50% to 8.50%||4.00% to 9.00%||Click here to check other details from official bank site|
|Capital Small Finance Bank||4.75% to 7.20%||5.25% to 7.70%||Click here to check other details from official bank site|
|ESAF Small Finance Bank||5.75% to 9.00%||6.25% to 9.50%||Click here to check other details from official bank site|
|Suryoday Small Finance Bank||4.00% to 9.00%||4.00% to 9.25% (effective from Aug 1, 2017)
4.00% to 9.75% (up to July 31, 2017)
|Click here to check other details from official bank site|
Apart from the currently functioning small finance banks listed above, few other microfinance corporations also received approval from RBI for converting their microfinance operations to small finance banks. As of now, the other small finance banks are expanding their branches and they planned to start banking operations from 2018. Expectations for attractive interest rate has been setup on those new banks to run ahead in the race.
Before placing deposit, please check the bank’s official site link given above and confirm the latest interest rate offered for deposits.