Highest Fixed Deposit Interest Rates: Small finance banks are currently offering attractive interest rates on one-year fixed deposits (FDs) for amounts less than Rs 3 crore. Investors can earn up to 8.25% interest on their deposits, which is a competitive rate in the current market.
Highest FD Rates For 1-Year Fixed Deposits
- Among the small finance banks, Jana Small Finance Bank and Ujjivan Small Finance Bank are leading the pack with an interest rate of 8.25% on their one-year FDs. Equitas Small Finance Bank follows closely with an interest rate of 8.2% for the same tenure.
- Utkarsh Small Finance Bank offers an 8% interest rate on its one-year FDs, while Unity Small Finance Bank provides a slightly lower rate of 7.85%.
- AU Small Finance Bank, on the other hand, offers a 7.25% interest rate for deposits maturing in one year.
Source: ET report quoting Paisabazaar data as on September 25, 2024
When considering investing in fixed deposits offered by small finance banks, it’s important to keep in mind that while these deposits are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts suggest proceeding with caution.The unique business model of small finance banks may result in a slightly different risk profile compared to scheduled commercial banks.
To minimize potential risks, financial advisors recommend that investors limit their investments in small finance bank FDs to an amount that is covered by the DICGC insurance, states an ET report.
It is important to note that these interest rates are subject to change and may vary depending on the bank’s policies and market conditions. Investors should carefully consider their financial goals and risk tolerance before investing in any fixed deposit scheme.
The Reserve Bank of India (RBI) opted to maintain the repo rate at its current level during the most recent monetary policy review conducted in August. However, financial analysts and economists predict that this decision might be the final pause before the central bank initiates a sequence of interest rate reductions.
Consequently, the interest rates offered on bank fixed deposits are likely to experience a gradual decline over the upcoming months.
