Small Finance Banks Lower Fixed Deposit Rates: Check New Rates Here

To establish their foothold in the market, Small Finance Banks began their operations by offering a higher rate on bank fixed deposits in comparison to most public run and private sector bank in the country.

Pointers to note if you are opening Fixed Deposit scheme with Small Finance Banks in India

1. Small Finance banks function as per the rules and norms laid down by the apex bank of the country i.e. RBI. But herein as the focus of these banks is primarily financial inclusion and they have a differentiated business, RBI came up with separate operating guidelines for them. Nonetheless other stipulations such as with respect to capital adequacy, CRR and SLR are to be adhered by these banks similar to commercial banks in the country. So, there are being administered and regulated at par with other private and public banking entities in the country.

2. Interest wise FDs at Small Finance Bank still offer a better rate with interest rate ranging between 5.6-6.75% for a 1 to 3 year tenure. In comparison, FDs at private and public sector banks offer a maximum of 5.3% for a similar tenure.

3. Deposits at Small Finance Banks similar to other banks in the country are insured by the DICGC or Deposit Insurance Credit Guarantee Corporation to the maximum of Rs. 5 lakh. So, as these term or fixed deposits at SFBs are also backed by an insurance of up to Rs. 5 lakh, investing in them shall be secure to the extent of insured amount.

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