Same FD, Very Different Returns
Before locking money into a fixed deposit, it helps to remember one thing — interest rates are not uniform across banks. They depend on the category of the bank and how long you keep your money parked. That is exactly why the same amount can earn you very different returns depending on where you open the FD.
Right now, the highest payouts sit with small finance banks. Select small finance banks are offering as much as 8.10 percent. By comparison, large private sector banks cap out at 7.35 percent, and government banks pay a maximum of 6.75 percent on their fixed deposits.
Utkarsh and Suryoday Lead at 8.10 Percent
The top return at the moment comes from Utkarsh Small Finance Bank. Its special 666-day FD carries a record 8.10 percent interest rate. Across other tenures, the bank pays 6.00 percent on a 1-year FD, 7.50 percent for 3 years, 7.00 percent for 5 years, and 6.75 percent on a long 10-year deposit.
Suryoday Small Finance Bank matches that headline rate, but on a different tenure. It offers 8.10 percent on a 30-month FD. Alongside this, both its 1-year and 3-year deposits earn 7.25 percent, the 5-year tenure earns 7.90 percent, and the 10-year option pays 7.25 percent.
Special Schemes from Shivalik and Jana
Shivalik Small Finance Bank has set a strong 7.80 percent on its special short-tenure FD scheme of 21 to 22 months. Among its other options, a 1-year FD earns 6.00 percent, a 3-year FD earns 6.75 percent, and both the 5-year and 10-year deposits pay 6.25 percent.
Jana Small Finance Bank also features among the high-return banks. It is paying 7.77 percent on fixed deposits in the 3-to-5-year range. If you prefer a shorter or much longer term, the bank offers 7.00 percent on a 1-year FD, 7.50 percent for 3 years, and 6.50 percent on a full 10-year deposit.
ESAF and Slice: Gains in the Middle Tenures
ESAF Small Finance Bank is paying 7.75 percent on medium-tenure FDs of 2 to 3 years. The shorter terms, however, return less — just 4.75 percent on a 1-year FD, 6.00 percent for 3 years, and 5.75 percent on both 5-year and 10-year deposits.
To draw customers, Slice Small Finance Bank has rolled out an unusual 18-month, 2-day FD that pays 7.75 percent. On top of that, investors can earn 6.25 percent on a 1-year FD, 7.50 percent for 3 years, 7.00 percent for 5 years, and 6.50 percent annually on a 10-year deposit.
Equitas and Its 888-Day Offer
Equitas Small Finance Bank is offering 7.75 percent on its special 888-day FD. Beyond that, its 1-year and 3-year deposits earn 7.10 percent, while the long 5-year and 10-year fixed deposits pay customers 7.00 percent.
