Interest rates

Small FD Financing Banks Interest Rates Better Than Large Private Banks: Check Rates If You Are Considering 3-10 Year FDs

Private banks FD rate

Axis Bank is one of the largest private banks operating in India which has lucrative interest rates on Fixed Deposits (FDs). For less than Rs. 2 crore investment the bank offers interest rates of 5.40% and 6.05% respectively for the public and seniors, for FDs from 3 years to less than 5 years. On the other hand, Axis Bank offers interest rates of 5.75% and 6.50% respectively for the public and seniors, for FDs of 5 to 10 years.

Another large private bank, HDFC offers interest rates of 5.35% and 5.85% respectively for the public and seniors, for FDs from 3 years to less than 5 years. The bank offers interest rates of 5.50% and 6.25% respectively for the public and seniors, for FDs of 5 to 10 years. Senior FD rates will not apply to NRIs.

ICICI Bank, on the other hand, also offers good rates for less than Rs. 5 crore investment. The bank offers interest rates of 5.40% and 5.90% respectively for the public and seniors, for FDs from 3 years to less than 5 years. In addition, ICICI Bank offers interest rates of 5.60% and 6.30% respectively for the public and seniors, for FDs of 5 to 10 years. This bank’s senior rates also only apply to domestic term deposits (Indian citizens).

Indusind Bank’s reach for DF and savings accounts is increasing among Indian citizens. The bank offers interest rates of 6.00% and 6.50% respectively for the public and the elderly, for FDs over 3 years up to 61 months. Indusind Bank offers interest rates of 5.50% and 6.00% respectively for the public and the seniors, for 61 months and more of FD.

Yes Bank, on the other hand, offers the same interest rates for FDs from 3 years to less than 10 years. Under deposits of Rs. 2 Crore, the rate for the public is 6.25%, while the elderly can earn 7.00% interest on the same deposit. The FD rates have been revised and these rates came into effect on January 4, 2022.

Over 5 years and above Comparison of FD rates

Private banks Interest rate for the public Interest rate for seniors
Axis Bank 5.75% 6.50%
HDFC 5.50% 6.25%
ICICI Bank 5.60% 6.30%
Industrial bank 5.50% 6.00%
Yes Bank 6.25% 7.00%

Thus, for FDs 5 years and older, Yes Bank and Axis Bank offer the best interest rates for both the public and seniors.

Small financing banks FD rate

Small financing banks FD rate

The smaller financial banks mentioned below offer better DF rates than the large cap private banks.

Utkarsh Small Finance Bank for deposits less than Rs. 2 Crore, offers 6.00% public interest and 6.50% senior interest for FDs from 701 days to 3652 days (10 years).

Ujjivan Small Finance Bank also gets lucrative PA interest rates below Rs. 2 Crores from FD investments. The bank grants 6.25% interest to the public and 7.00% interest to seniors for FDs from 3 to 5 years old. Ujjivan Small Finance Bank offers 6.00% interest to the public and 6.75% interest to seniors for FDs 5-10 years old.

Suryoday Small Finance Bank interest rate for an amount less than Rs. 2 Crore is a little better than the banks mentioned above. The bank offers 6.50% interest to the public and 6.50% interest to the elderly for FDs over 3 years to less than 5 years. Suryoday Small Finance Bank gets 6.75% interest for the public and 7.00% interest for seniors for 5 years FD. On the other hand, the bank shows an interest of 6.00% for the public and 6.00% for the elderly for FDs over 5 to 10 years old.

Equitas’ Small Finance Bank also has much better interest rates on FDs than private banks. The bank offers 5.75% interest to the public and 6.25% interest to seniors for 3 to 5 year FDs. Equitas Small Finance Bank grants 6.00% interest to the public and 6.50% interest to seniors for FDs from 5 to 10 years. NRIs will not be able to get the additional interest for the elderly.

5 years or more FD rate in small financing banks

Small financing banks Interest rate for the public Interest rate for seniors
Utkarsh Small Financial Bank 6.00% 6.50%
Ujjivan Small Finance Bank (3 years to 5 years) 6.25% 7.00%
Suryoday Small Finance Bank (5 years) 6.75% 7.00%
Small Equitas Financial Bank 6.00% 6.50%
Comparison of FD rates

Comparison of FD rates

By comparing the FD rates offered by these 5 private banks and 4 small financing banks, we can understand that Suryoday Small Finance Bank offers the best rates for 5-year FDs. Among all the banks Yes Bank gets the best FD rates, which can be compared to the rates of small finance banks. All the other banks give fairly low returns.

Many young investors are now moving away from FDs due to the low interest rates offered. Compared to FD, the interest rates of the Public Provident Fund (PPF) are a little better, at 7.1%, in the long term. In the short term, investors prefer mutual funds, ETFs and SIPs, which have a better appetite for risk. The FD are only securing the money, considering the high inflation rate in India, the FD are not very profitable now. Therefore, if you are investing in FDs, you should check the available rates wisely. In addition, investing in FDs in small financial banks is quite safe; the Union government also insures your FD deposits up to Rs. 5 lakhs. So, you can also consider opening an account with one of the existing smaller funding banks, to get better returns.