Small Finance Bank FDs: Fixed deposits (FDs) continue to be a popular investment option among people who prefer predictable returns and want to stay away from market-related risks. Small finance banks are currently offering attractive FD interest rates, particularly to senior citizens, with some rates higher than those offered by major banks such as SBI and HDFC.
For investors planning to keep their money invested for the long term, a five-year FD with a small finance bank can provide a relatively attractive return. Senior citizens can also benefit from additional interest rates offered by banks on fixed deposits.
Small Finance Banks Offering Attractive 5-Year FD Rates
Several small finance banks are offering competitive interest rates on five-year fixed deposits for senior citizens.
Suryoday Small Finance Bank is offering the highest rate among the banks listed, with senior citizens able to earn up to 8.50% interest on a five-year FD.
Other small finance banks are also offering attractive rates for the same tenure. Jana Small Finance Bank is offering 8%, while Ujjivan Small Finance Bank offers 7.70%. Equitas Small Finance Bank and Utkarsh Small Finance Bank are offering 7.50% each.
Meanwhile, AU Small Finance Bank and Slic Small Finance Bank are offering 7.25% interest on five-year FDs.
Senior Citizens Get Higher Interest Rates
Banks generally provide senior citizens with a higher rate of interest on fixed deposits than regular customers. People aged 60 years or above are eligible for this additional benefit.
At present, Suryoday Small Finance Bank is offering senior citizens an interest rate of 8.50% on five-year FDs. This makes the bank an option worth considering for senior citizens looking for a long-term fixed deposit investment.
What Will a ₹5 Lakh FD Become in 5 Years?
Suppose a senior citizen invests ₹5 lakh in a five-year FD at an annual interest rate of 8.50%. According to the figures provided, the investment would grow to ₹7,61,397 at maturity.
The total interest earned during the five-year period would be ₹2,61,397, taking the total maturity amount to ₹7,61,397.
Disclaimer: The interest rates and maturity calculations mentioned in this article are based on the information provided and may change according to the respective bank’s policies. Investors should verify the latest FD interest rates, applicable terms and conditions directly with the bank before making any investment decision.