With the Reserve Bank maintaining the interest rate regime at an elevated level, banks continue to offer attractive rates on fixed deposits to attract new customers. Over the past two years, all banks, including small finance banks, have been raising their FD rates to secure more deposits amidst the high repo rate environment.
Compared to large banks and PSU lenders, small finance banks face greater challenges in attracting new customers to their fixed deposit plans. As a result, they often offer higher interest rates than scheduled commercial banks.
In this story, we will examine the 3-year fixed deposit rates for general customers and senior citizens offered by various small finance banks in 2025.
FD rates from the top 10 small finance banks in January 2025:
The small finance bank offers the highest FD interest rates up to 9.5% on a deposit tenure of 1001 days. General customers are offered a 9% rate and senior citizens 9.5% on deposits parked with the bank for 1001 days.
The small finance bank is currently offering the highest interest rate of 9% on FDs booked for 1.5 years to 3 years by both general customers and senior citizens.
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This bank is offering senior citizens the highest rate of 9.10% on FDs parked for 3 years. For general customers subscribing to the same tenure FDs, the bank offers an 8.6% interest rate.
The small finance bank’s FD interest rate for senior citizens booking a 3-year FD is 9.10%, while general customers are getting 8.5%.
The small finance lender provides an interest rate of 8.75% to senior citizens on its 3-year FD and 8.25% to general customers on the same tenure product.
It offers senior citizens an 8.75% rate on fixed deposits (FDs) booked for 3 years, while general customers are offered 8.25% on same-tenure deposits.
It offers an 8.75% interest rate to senior citizens on fixed deposits maturing in three years and an 8.25% for general citizens.
The small finance bank offers senior citizens an 8.75% interest rate on FDs maturing in three years and 8.25% to general citizens.
The bank is providing an FD rate of 8.8% to senior citizens and 8.3% to general customers booking FDs for a 3-year tenure.
The small finance bank provides senior citizens an 8.6% interest rate on FDs maturing in three years and general citizens 8%.
Source: Paisabazaar
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All the small finance banks listed are recognised as scheduled banks by the RBI. Depositors who park their money in small finance banks are eligible for deposit insurance provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Deposits are covered up to Rs 5 lakh cumulatively, which includes fixed deposits, savings, current, and recurring deposits in each scheduled bank. This coverage applies in the event of a bank failure, merger, or amalgamation.
Fixed deposits are considered a safe investment choice for retail investors who prioritise the security of their money over high returns. While FDs typically don’t offer returns as high as other investment options like stocks, mutual funds, gold, or real estate, they guarantee a fixed return upon maturity. This makes FDs a reliable product with low risk. Senior citizens, in particular, tend to prefer FDs as they want to avoid the risks associated with market-linked products at a later stage in life, often living off the limited savings accumulated during their working years.
2025-01-21T13:08:06Z