FD interest rates: If you are looking for higher returns on FDs than big banks, then small finance banks can prove to be a great option.
FD interest rates: Bank FDs (Fixed Deposits) are considered to be one of the traditional and reliable options for investment. If you are looking for higher returns on FDs than big banks, then small finance banks can prove to be a great option. Most small finance banks are giving about 1% more interest on term deposits than big private and government banks. Like big banks, here too there is no risk on investment up to Rs 5 lakh, because insurance cover is provided on this amount by RBI’s subsidiary company DICGC. Let us understand through FD calculation where you will get better returns on depositing Rs 5 lakh for 1, 3 and 5 years.
Unity Small Finance Bank
The interest rates on Unity Small Finance Bank’s fixed deposits (FD) range between 4.50% to 9.00% per annum for general customers. Interest rates on FDs for senior citizens range from 4.50% to 9.50% per annum. The bank offers FDs ranging from 7 days to 10 years to its customers.
| Time-Period | FD Rate | Amount |
| Highest slab rate | 9.00% p.a. (for 1001 days) | 6,38,227.13 |
| For 1 year | 7.85% p.a. | 5,40,420.61 |
| For 2 years | 7.90% p.a. | 5,84,681.99 |
| For 3 years | 8.15% p.a | 6,36,924.15 |
| For 4 years | 8.15% p.a. | 6,90,441.61 |
| For 5 years | 8.15% p.a. | 7,48,455.86 |
North East Small Finance Bank
The interest rates on fixed deposits (FDs) of North East Small Finance Bank range from 3.25% to 9.00% per annum for general customers. For senior citizens, the interest rates on FDs range from 3.75% to 9.50% per annum. The bank offers FDs ranging from 7 days to 10 years to its customers.
| Time-Period | FD Rate | Amount |
| Highest slab rate | 9.00% p.a. (546 days to 1111 days) | 6,55,577.73 |
| For 1 year | 7.00% p.a. | 5,35,929.52 |
| For 2 years | 9.00% p.a. | 5,97,415.57 |
| For 3 years | 9.00% p.a. | 6,53,024.99 |
| For 4 years | 8.00% p.a. | 6,86,392.85 |
| For 5 years | 6.25% p.a. | 6,81,769.64 |
Suryoday Small Finance Bank
The interest rates on fixed deposits (FDs) of Suryoday Small Finance Bank range from 4.00% to 8.60% per annum for general customers. Interest rates on FDs for senior citizens range from 4.50% to 9.10% per annum. The bank offers FDs ranging from 7 days to 10 years to its customers.
| Time-Period | FD Rate | Amount |
| Highest slab rate | 8.60% p.a. (for above 2 years to 3 years) | 6,45,402.22 |
| For 1 year | 8.05% p.a. | 5,41,481.43 |
| For 2 years | 8.50% p.a | 5,91,597.81 |
| For 3 years | 8.60% p.a. | 6,45,402.22 |
| For 4 years | 6.75% p.a. | 6,53,508.33 |
| For 5 years | 8.25% p.a. | 7,52,131.96 |
Utkarsh Small Finance Bank
The interest rates on fixed deposits (FDs) of Utkarsh Small Finance Bank range from 4.00% to 8.50% per annum for general customers. Interest rates on FDs for senior citizens range from 4.75% to 9.10% per annum. The bank offers FDs ranging from 7 days to 10 years to its customers.
| Time-Period | FD Rate | Amount |
| Highest slab rate | 8.50% p.a. (for 2 years to 3 years;1500 days) | 7,06,457.79 |
| For 1 year | 8.00% p.a. | 5,41,216.08 |
| For 2 years | 8.50% p.a. | 5,91,597.81 |
| For 3 years | 8.50% p.a. | 6,43,509.32 |
| For 4 years | 7.75% p.a. | 6,79,694.35 |
| For 5 years | 7.75% p.a. | 7,33,921.44 |
Shivalik Small Finance Bank
The interest rates on FDs of Shivalik Small Finance Bank range from 3.50% to 8.55% per annum for general customers. Interest rates on FDs for senior citizens range from 4.00% to 9.05% per annum. The bank offers FDs for tenures ranging from 7 days to 10 years to its customers.
| Time-Period | FD Rate | Amount |
| Highest slab rate | 8.45% p.a. (for 18 months to 2 years) | 5,91,018.77 |
| For 1 year | 6.15% p.a. | 5,31,466.47 |
| For 2 years | 8.45% p.a. | 5,91,018.77 |
| For 3 years | 7.65% p.a. | 6,27,623.89 |
| For 4 years | 6.65% p.a. | 6,50,942.41 |
| For 5 years | 6.65% p.a. | 6,95,321.58 |
Tax will be levied on interest on FD
Interest on fixed deposits (FDs) is taxed as per income tax rules. If the interest earned from FDs in a financial year exceeds Rs 40,000, you will have to pay TDS. For senior citizens, this limit is Rs 50,000.
The standard TDS rate is 10%, but if the depositor has not provided his PAN card to the bank, this rate increases to 20%. However, if one’s total income is less than the taxable limit, he can request the bank to stop TDS deduction by filling Form 15G. For senior citizens, this process is completed through Form 15H.
(Note: Information on interest rates on FDs has been taken from the official websites of the respective banks.)
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