Best FD Interest Rates from Small Finance Banks – Oct 2019

Best FD Interest Rates from Small Finance Banks-Oct-2019Best FD Interest Rates from Small Finance Banks – Oct 2019


Do you know that small finance banks are offering higher interest rates in India. Some of these banks are offering up to 9% interest rates for regular investors and 9.5% for senior citizens. If you want to park your surplus money or looking for higher regular income, Small Finance Banks could be a better choice. What are Small Finance Banks? What are the Latest FD Interest Rates offered by these Small Finance Banks? Which Small Finance Bank is offering best FD interest rates in India now in Oct-2019?

Also Read: What are fixed deposit rates in Post Office?

What are Small Finance Banks in India?


Small Finance Banks are formed in order to serve the unserved or underserved section of the population and to supply the credit to small business units, micro and small industries, small and marginal farmers, and other unorganized sector entities through high technology and low-cost operations. They are a type of niche banks in India. The banks that obtain the license of small finance banks can provide the basic banking facility of lending and accepting the funds.  They are governed by the provisions of the Reserve Bank of India, Banking Regulation Act, 1949 and other relevant statutes. There are over 10+ banks that received approval from RBI and most of them have already started the operations.

Here are the list of Small Finance Banks in India (Source RBI website).

1) Au Small Finance Bank Ltd.

2) Capital Small Finance Bank Ltd

3) Fincare Small Finance Bank Ltd.

4) Equitas Small Finance Bank Ltd

5) ESAF Small Finance Bank Ltd.

6) Suryoday Small Finance Bank Ltd.

7) Ujjivan Small Finance Bank Ltd.

8) Utkarsh Small Finance Bank Ltd.

9) North East Small finance Bank Ltd

10) Jana Small Finance Bank Ltd

Features of Small Finance Bank FD Schemes


Here are some of the features of these small finance banks

1) These small finance banks operate from their main location only. Some of such banks have few branches too.

2) These small finance banks are offering interest rates between 7% to 9.5% on their fixed deposit schemes for 1 to 5 years tenure.

3) You can open FD scheme online or visiting their office if it is near to you.

4) Small Finance Banks offer 0.5% to 0.6% higher interest rates for Senior Citizens.

1) Au Small Finance Bank FD – Features and interest rate


Here are the features of the FD scheme from this bank.

You can invest as low as Rs 1,000 in this FD scheme.

You can open Online FD and close it online.

You can get interest rates ranging between 7% to 7.77% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

Here are the latest bank FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year7.00%7.50%
2 Years7.50%8.00%
3 Years7.77%8.27%
4 Years7.50%8.00%
5 Years7.50%8.00%
Data: Oct-2019

2) Capital Small Finance Bank – Features and interest rates


Here are the features of the FD scheme from this bank.

Interest is compounded quarterly, hence the annualized interest would be high.

Loan / Overdraft facility available up to 92.5% of the deposit plus accrued interest thereon.

You can get interest rates ranging between 7.25% to 7.4% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

You need to put a request on the bank website and their representative would call you to open FD scheme.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year7.40%7.90%
2 Years7.40%7.90%
3 Years7.40%7.90%
4 Years7.40%7.90%
5 Years7.25%7.75%
Data as on: Oct-2019

2) Fincare Small Finance Bank FD – Features and interest rates


Here are the features and rates of the FD scheme from this bank.

You can opt for flexible payout options like monthly payout, quarterly payout or yearly payout options.

You can get interest rates ranging between 8% to 9% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

You can open Online FD and close it online.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year8.00%8.50%
2 Years8.75%9.25%
3 Years9.00%9.50%
4 Years8.00%8.50%
5 Years8.00%8.50%
Data as on: Oct-2019

4) Equitas Small Finance Bank FD – Features and interest rates


Here are the features and rates of the FD scheme from this bank.

You can opt for flexible payout options like monthly payout, quarterly payout or yearly payout options.

You can get interest rates ranging between 7% to 7.8% for 1 to 5 years tenure.

Senior Citizens would get 0.6% extra rate compared to general category.

You can open Online FD and close it online.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year7.50%8.10%
2 Years7.70%8.30%
3 Years7.80%8.40%
4 Years7.00%7.60%
5 Years7.00%7.60%
Data as on: Oct-2019

5) ESAF Small Finance Bank FD – Features and interest rates


Here are the features and rates of the FD scheme from this bank.

You can opt for flexible payout options like monthly payout, quarterly payout or yearly payout options.

You can get interest rates ranging between 7.3% to 8.25% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

You can open Online FD and close it online.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year8.25%8.75%
2 Years8.00%8.50%
3 Years7.30%7.80%
4 Years7.30%7.80%
5 Years7.30%7.80%
Data as on: Oct-2019

6) Suryoday Small Finance Bank FD – Features and interest rates


Here are the features and rates of the FD scheme from this bank.

You can invest as low as Rs 1,000 in this FD scheme

You can opt for flexible payout options like monthly payout, quarterly payout or yearly payout options.

You can get interest rates ranging between 8% to 8.75% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

You can open Online FD and close it online.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year8.35%8.85%
2 Years8.50%9.00%
3 Years8.75%9.25%
4 Years8.00%8.50%
5 Years8.00%8.50%
Data as on: Oct-2019

7) Ujjivan Small Finance Bank FD – Features and interest rates


Here are the features and rates of the FD scheme from this bank.

You can opt for flexible payout options like monthly payout, quarterly payout or yearly payout options.

You can get interest rates ranging between 7% to 8.1% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

You can open Online FD and close it online.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year8.10%8.60%
2 Years8.10%8.60%
3 Years7.50%8.00%
4 Years7.00%7.50%
5 Years7.00%7.50%
Data as on: Oct-2019

8) Utkarsh Small Finance Bank FD – Features and interest rates


Here are the features and rates of the FD scheme from this bank.

You can opt for flexible payout options like monthly payout, quarterly payout or yearly payout options.

You can get interest rates ranging between 7.75% to 8.2% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

You can open Online FD and close it online.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year8.20%8.70%
2 Years8.00%8.50%
3 Years8.00%8.50%
4 Years8.00%8.50%
5 Years7.75%8.25%
Data as on: Oct-2019

9) North East Small finance Bank FD – Features and interest rates


Here are the features and rates of the FD scheme from this bank.

You can invest as low as Rs 1,000 in this FD scheme

You can opt for flexible payout options like monthly payout, quarterly payout or yearly payout options.

You can get interest rates ranging between 6.75% to 8% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

You can open Online FD and close it online.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year8.00%8.50%
2 Years8.00%8.50%
3 Years7.25%7.75%
4 Years7.25%7.75%
5 Years6.75%7.25%
Data as on: Oct-2019

10) Jana Small Finance Bank FD – Features and interest rates


Here are the features and rates of the FD scheme from this bank.

You can invest as low as Rs 1,000 in this FD scheme

You can opt for flexible payout options like monthly payout, quarterly payout or yearly payout options.

You can get interest rates ranging between 8% to 8.4% for 1 to 5 years tenure.

Senior Citizens would get 0.5% extra rate compared to general category.

You can open Online FD and close it online.

Here are the latest FD rates from this small finance bank.

TenureGeneral CategorySenior Citizens
1 Year8.00%8.60%
2 Years8.25%8.85%
3 Years8.40%9.00%
4 Years8.25%8.85%
5 Years8.25%8.85%
Data as on: Oct-2019

Which are the Best FD interest rates for 1 year from Small Finance Banks?


Below are the Best Fixed Deposit Interest Rates for 1 year tenure.

1) Suryoday Small Finance Bank offers 8.35%

2) ESAF Small finance Bank offers 8.25%

3) Utkarsh Small Finance Bank offers 8.2%

4) Ujjivan Small Finance Bank offers 8.1%

Which are the Best FD interest rates for 2 years from Small Finance Banks?


Below are the Best Fixed Deposit Interest Rates for the 2 year tenure.

1) Fincare Small Finance Bank offers 8.75%

2) Suryoday Small Finance Bank offers 8.5%

3) Ujjivan Small Finance Bank offers 8.1%

4) Jana Small finance Bank offers 8.25%

Which are the Best FD interest rates for 3 years from Small Finance Banks?


Below are the Best Fixed Deposit Interest Rates for the 3 year tenure.

1) Fincare Small Finance Bank offers 9%

2) Suryoday Small Finance Bank offers 8.75%

3) Jana Small finance Bank offers 8.4%

Which are the Best FD interest rates for 4 years from Small Finance Banks?


Below are the Best Fixed Deposit Interest Rates for the 4 year tenure.

1) Jana Small finance Bank offers 8.25%

2) Fincare Small Finance Bank offers 8%

3) Suryoday Small Finance Bank offers 8%

4) Utkarsh Small finance Bank offers 8%

You may like: LIC Housing Fixed Deposit Scheme offers 8.2% Rates – Should you invest?

Which are the Best FD interest rates for 5 years from Small Finance Banks?


I could see many commenting on our blog saying “how much interest I will get in 5 years” and “how to get the highest interest”. It is as simple as that one need to choose the highest interest rate FD for such 5 years to get good returns. Below are the Best Fixed Deposit Interest Rates for the 5 year tenure.

1) Jana Small finance Bank offers 8.25%

2) Fincare Small Finance Bank offers 8%

3) Suryoday Small Finance Bank offers 8%

Are Small Finance Bank FD Schemes are safe?


Since these FD rates are higher, investors would get tempted to invest in such FD schemes. Here are some of the risks an investor should consider before investing in Small Finance Banks FD Schemes.

1) These small finance banks are new to the banking industry. You might not be fully aware about these banks on how they operate.

2) These small finance banks have limited areas of operations. You might not find a small finance bank or its branch near to you. You need to depend online for opening FD or closing FD or to get any clarifications from such banks.

3) These small finance banks may turn to high risk as we did not know much about their operations in the past.

Some of the FAQs about Small Finance Bank FD Schemes


How to open FD scheme with small finance banks?

Like any other bank FD scheme, you can either visit one of its branches or open the FD online. The closure process also remains almost same. It has premature withdrawal terms and conditions.

Can I get monthly interest from Fixed Deposit Schemes offered by small finance banks?

These banks offer FD schemes like any other bank and it offers monthly, quarterly, half-yearly and yearly payouts.

Is Interest on FD taxable?

Whether you submit the Form-15H or 15G or not, if your income is taxable, then the interest on FD is taxable.

How to choose a Best FD Rate scheme?

Based on the tenure for which you want to invest, check the bank that is offering highest FD rate and invest in such FD scheme.

What is the minimum and maximum tenor of FD?

Most of the banks offer FDs for a minimum of 7 days and maximum of 10 year period.

If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter who might be benefitting from such investments.

Suresh KP

Best FD Interest Rates from Small Finance Banks – Oct 2019

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