Looking For High Deposit Returns? Check Out The Best Special FD Rates By Small Finance Banks

A small finance bank is a registered financial institution with priority sector lending having a capital of at least 200 crores. The decision to enable small finance institutions primarily to financial services for unserved and under-served sections of the population.

A vision to offer appropriate credit support to farmers or farmer's unions, small units in the rural sections based on agricultural and manufacturing. The increased economic activities of the country's rural region, pushed by both central and state governments portray a strong potential for these Small Finance Banks in India to hike exponentially, at par with the increasing financial awareness.

Small Finance Banks are gaining momentum in the fast-phased economic growth of India after the introduction of payments banks, and small finance banks have ensured the required services are available for the modern-day demand of immediate financial assistance.

As depositors, the most important features noticeable for parking funds in Indian small finance banks are the attractive interest rate offerings and the best tenure to gain the highest possible returns. The article here compares and lists the varied interest rates offered by small finance institutions across the country and helps views filter out the best options available for term deposits in India.

Equitas Small Finance Bank

Equitas Small Finance Bank is the second largest small finance bank in India, with a market capitalisation of more than Rs. 11,500 crores. It ranks 28th among all banking and financial institutions in the country, and as of February 2024, it offers the best interest rates for term deposits in India. The Equitas small finance bank, as per the official website, is offering an 8.2% interest rate for term deposits maturing in a year to young depositors, while up to 9% for senior citizens under. The special term deposit schemes offered by Fincare small finance bank would ensure depositors gain 8.5% returns through interest for 444 days. On the other hand, the 888-day special FD scheme by Equitas Small Finance Bank is offered at an interest rate of 8.25%.

AU Small Finance Bank

The largest small finance bank in India in terms of market capitalisation is the AU small finance bank, with headquarters in Jaipur and more than 500 branches in 24 states and union territories. The presence itself enables them to have a valuable customer base with a robust exchange of funds, ensuring the interest rates offered are comparably higher. Around 8% interest rate is offered by AU Small Finance Bank in deposits maturing within 18 months, delivering an annual return of around 8.24%. Hence, investors can earn around Rs. 1,200/- within a year and a half for a deposit of Rs. 10,000/-. On the other hand, the retail fixed deposit interest rate for deposits above Rs. 1 crore is 8.1%, annualised up to 8.35% returns by the end of 18 months.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank competes for the second position, displaying its potential to hold a grip as a competitive small finance institution in India. The bank has an immense presence in South India, offering the best ROI of around 8.25% for a term deposit of 12 months. A similar 8.25% interest is also available for special FD schemes up to 80 weeks. In contrast, senior citizens can avail of interest rates of up to 8.75% per annum with Ujjivaan Small Finance Bank.

Fincare Small Finance Bank Limited

Fincare small finance bank is one of the fast-growing small finance institutions with a market capitalisation of above Rs. 5,000 crores, which is 10%, compared to the largest small finance institution in India. Fincare Bank is currently offering the best term deposit interest rates in India for investors with special schemes ranging from 500 to 1000 days. Depositors below Rs. 2 crore and premature withdrawal facilities can park their funds for an interest rate of 7.87% for more than a year, while the special FD scheme of 500 days is offered at 8.47%. The best interest rate for special term deposits is for 750 days, with a rate of interest of 8.89% per annum for the general public, which gets 9.5% for senior citizens. The 1000-day term deposits are offered at 8.68% interest returns.