9.5% FD RATES! TOP 10 BANKS OFFERING HIGH RETURNS FOR 3-YEAR FIXED DEPOSITS – FULL LIST HERE

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:

  1. Unity Small Finance Bank

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.

  1. North-East Small Finance Bank

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.

Also read: UPI Fraud Alert: What is Jump Deposit Scam everyone is talking about?

  1. Suryoday Small Finance Bank

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.

  1. Utkarsh Small Finance Bank

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%.

  1. Jana Small Finance Bank

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.

  1. Ujjivan Small Finance Bank

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.

  1. Equitas Small Finance Bank

It offers an 8.75% interest rate to senior citizens on fixed deposits maturing in three years and an 8.25% for general citizens.

  1. ESAF Small Finance Bank

The small finance bank offers senior citizens an 8.75% interest rate on FDs maturing in three years and 8.25% to general citizens.

  1. Shivalik Small Finance Bank

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.

  1. AU Small Finance Bank

The small finance bank provides senior citizens an 8.6% interest rate on FDs maturing in three years and general citizens 8%.

Source: Paisabazaar

Also read: ‘SBI Rewards’ scam: Govt alerts SBI customers! Here’s how to protect your money from fraudsters

Are small finance bank FDs safe?

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.

Why are FDs still popular among customers, especially senior citizens?

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