SBI, HDFC Bank Raise FD Interest Rates; What Small Finance Banks Pay



Fixed deposits or FDs are popular among small savers. As compared to market-linked instruments like stocks or bonds, FDs guarantee secure investment return over a period of time. Usually, new savers with low risk-appetite look for guaranteed return. Bank fixed deposits fit the bill in such cases perfectly. Key banks like State Bank of India or SBI and HDFC Bank have recently increased their FD interest rates. Small finance banks like Jana Small Finance Bank, Fincare Small Finance Bank and ESAF Small Finance Bank also offer competitive fixed deposit or FD interest rates.



Small finance banks cater to under penetrated areas of the country. This is not to say that they do not lend money and offer deposits to urban areas. In fact, the FD interest rates of small finance banks beat the ones offered by top banks like SBI and HDFC Bank.

SBI FD interest rate for a 1-year tenure is 6.70 per cent. HDFC Bank interest rates on FDs of a 1-year tenure are 7.75 per cent. However, on a one-year FD, Jana Small Finance Bank pays 8 per cent interest rate, Fincare Small Finance Bank pays 8 per cent and ESAF Small Finance Bank 8.75 per cent.

Source - NDTV 

Follow by Email