Best FD Rates in India – Small Finance Banks – Dec-2018
Recent RBI review had erased hope about the increase in bank FD rates in India now. While some banks are offering good interest rates, the majority of banks are offering lowest rates compared to rates of couple of years back. Small Finance Banks are offering attractive interest rates up to 9.6% for Senior Citizens.ย They are offering up to 9% interest rates for regular investors. Investors are getting attracted towards them as they are offering Best FD rates in India compared to large banks. What are Small Finance Banks in India? Which are the best FD rates in India from Small Finance Banks for Dec-2018? Which are the best FD interest rates in India offered by such small finance banks to park your money for 1 year, 2 years or 5 years?
Also Read: Best Mutual Funds to invest in India 2019
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.ย 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.
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. These are higher compared to Bank FD’s or compared to post office saving scheme interest rates.ย
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 0.7% higher interest rates for Senior Citizens.
How to open FD scheme with small finance banks?
Like any other bank FD scheme, you can either visit one of its branch or open the FD online. The closure process also remains almost same. It has premature withdrawal terms and conditions.
Best FD Rates in India – Small Finance Banks – Dec-2018
Let us check which bank is offering best Fixed Deposit interest rates in India now in Dec-2018.
Top 5 Best FD Rates in India for 1 year from Small Finance Banks
Here are the highest FD interest rates to invest for one year time frame.
ย 
Top 5 Best FD Rates in India for 2 years from Small Finance Banks
Here are the highest FD interest rates to invest for two year time frame.
Top 5 Best FD Rates in India for 3 years from Small Finance Banks
Here are the highest FD interest rates to invest for three year time frame.
ย 
Top 5 Best FD Rates in India for 4 years from Small Finance Banks
Here are the highest FD interest rates to invest for four year time frame.
ย 
Top 5 Best FD Rates in India for 5 years from Small Finance Banks
Here are the highest FD interest rates to invest for five year time frame.
Comparison of Small Finance Bank FD Rates in India for Dec-2018 โ Regular investors
The comparison list would help investors to choose the right bank for fixed deposits. Going forward, we would track even Small Finance Bank FD rates month on month and give a comparison whether such FD rates are going up or going down.
Comparison of Small Finance Bank FD Rates in India for Dec-2018 โSenior Citizens
The comparison list would help investors to choose the right bank for fixed deposits. Going forward, we would track even Small Finance Bank FD rates month on month and give a comparison whether such FD rates are going up or going down.
Also Read: Best SBI Mutual Fund Schemes to invest through SIP
Are Small Finance Banks FD Schemes safe?
Since these FD rates offer higher interest, 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.
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter who might be benefitting from such investments.
Suresh
Best FD Rates in India – Small Finance Banks – Dec-2018
- Difference Between Pure Term Plan and Term Plan with Return of Premium - September 10, 2024
- Bajaj Housing Finance IPO – Details, Review and Analysis - September 8, 2024
- 10.7% Indostar Capital Finance NCD Sep-2024 โ Issue Details and Review - September 8, 2024
Can you confirm.if it’s save to invest in these banks or not ? Will rbi come in between if they are unable to pay interest
Hello vivek, Like RBI regulates other banks, RBI regulates even these small finance banks too. There is risk element, however it is there even for regular banks too
WHAT IS THE SECURITY Factor of these small payment bank deposits. Is Rs 1 lac security as per security available in nationalised banks available with deposits perked in small payment bank. Kindly state about legal sanctity as granted to these banks by RBI.
Rajarshi, These are regulated by RBI like it regulates other banks too. However, these small finance banks operations are limited to city/state/few states. There is risk element of investing in these FD schemes as indicated in our article
Thank you Mr Suresh. Is there any Governmental / RBI control on such Banks? How can the depositor be assured that his money is in safe hands? In the event the Bank fails, what is the recourse for the depositor??
Hello Muralidhar, These are regulated like any other banks by RBI. There is risk element.