5 small finance banks offer interest of up to 9% on their fixed deposits

Depositors are accustomed to choosing a bank based on a number of factors which include rate of interest they offer, customer-friendly services they provide and the word-of-mouth feedback.

Besides large commercial banks, small finance banks also offer good interest rate on their fixed deposits.

Here, we give a lowdown on small finance banks which offer an interest in the range upward of 8 percent per annum. These are small finance banks which offer high interest rate:

Capital Small Finance Bank: Capital Small Finance Bank offers an interest of 7.15 percent per annum to investors for one-year fixed deposit.

Under the special category, it offers 7.6 percent for a term deposit of 400 days. The senior citizens are entitled to receive an interest of 8.10 percent per annum on 400 day-deposit.

Equitas Small Finance Bank: This bank offers 8.20 percent on its one-year fixed deposits (FD). For special duration deposits, the interest rate rises even higher.

A deposit of 444 days earns an interest of 8.50 percent per annum. A deposit of 888 days gives an interest of 8.25 percent. Interestingly, a longer duration FD such as for 5 years gives a lower interest rate i.e., 7.25 percent per annum.

(*These interest rates are offered to senior citizens)

Utkarsh Small Bank: It offers an interest of 8 percent per annum on one-year deposits. The highest interest rate of 8.5 percent is offered on the deposits of tenure that ranges between 2 to 3 years.

At the same time, senior citizens are entitled to 9.10 percent per annum interest on deposits of 2-3 years tenure.

They also stand to receive an interest of 8.85 percent per annum on deposits between 3-4 years.

Jana Small Finance Bank: It offers 8 percent on its one-year deposits. The highest interest rate of 8.5 percent is offered on deposits of tenure that range between 2-3 years.

Senior citizens are entitled to receive 9 percent interest on its fixed deposits with 2-3 years tenure.

Ujjivan Small Finance Bank: It offers an interest of 8.25 percent on fixed deposits of 12-month tenure. The highest interest rate of 8.25 percent is also given on the deposits with tenure of 560 days.

Meanwhile, senior citizens are entitled to an extra 50 basis points interest over and above these interest rates.