1 day ago
Small Finance Banks Offer High FD Rates, But Diversification Matters
Some small finance banks are offering high interest rates on fixed deposits.
Suryoday Small Finance Bank has the highest listed rate, at 8.25% for general citizens and 8.50% for senior citizens.
Other banks also offer competitive rates.
However, the highest rate may require keeping money locked away for longer.
That can be a problem if someone needs the money quickly.
An expert identified as Jain recommends comparing the bank, tenure and personal savings needs.
Investors can spread deposits across different banks and use different tenures.
Deposits are insured up to Rs 5 lakh per depositor per bank by the Deposit Insurance and Credit Guarantee Corporation.
Booking fixed deposits in stages can also provide more flexibility.
Suryoday Small Finance Bank offers up to 8.25% for general citizens and 8.50% for senior citizens.
Jana Small Finance Bank and Shivalik Small Finance Bank offer up to 8.00% for general citizens.
Ujjivan Small Finance Bank offers up to 7.80% for general citizens and 8.30% for senior citizens.
AU Small Finance Bank offers up to 7.40% for general citizens and 7.90% for senior citizens.
Expert advice is to assess tenure, liquidity, bank choice, deposit insurance and overall savings goals instead of chasing the highest rate.
- Who
- Savers, fixed-deposit investors and the listed small finance banks; an expert identified as Jain provides the guidance.
- What
- Small finance bank fixed-deposit rates are compared, with advice to consider more than the headline interest rate.
- Where
- Across the listed small finance banks.
- When
- Currently, according to the rate comparison in the article.
- Why
- To help investors balance returns, safety, liquidity, deposit insurance and savings goals.
Key facts
- Highest general-citizen rate
- Suryoday Small Finance Bank offers up to 8.25%.
- Highest senior-citizen rate
- Suryoday Small Finance Bank offers up to 8.50%.
- Other leading rates
- Jana Small Finance Bank and Shivalik Small Finance Bank offer up to 8.00% for general citizens.
- Senior-citizen comparison
- Jana Small Finance Bank and Ujjivan Small Finance Bank offer up to 8.30%.
- Deposit insurance
- Deposit Insurance and Credit Guarantee Corporation cover is up to Rs 5 lakh per depositor per bank.
- Suggested strategy
- Spread deposits across banks and tenures, and consider booking fixed deposits in stages.
Quotes
Jain
An expert cited in the article discussing fixed deposit investment strategy.
“Spreading deposits across banks and tenures can help balance returns, safety and liquidity”
businesstoday.in
“the highest rate is not always the best choice.”
businesstoday.in
Sources
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