• Source:JND
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Fixed Deposit Interest Rates: The stock market has been volatile this year so far, making it difficult for low-risk-taking investors to put their money in equities. Meanwhile, the fixed deposit rates in scheduled banks are attractive at the moment due to the lower repo rate.  Amid all these, if you are a senior citizen seeking safe and high-yielding investment instruments—Fixed Deposits– for a short period of three years or less, then schemes in several small finance banks (SFBs) could be a better choice for you. Few SFBs are offering compelling rates, with returns exceeding 8 per cent.

Which Banks Offer the Highest Returns?

Shivalik Small Finance Bank currently leads the market by offering an interest rate of 8.30 per cent. This competitive rate is available for a tenure spanning 21 months and 1 day up to 22 months, meaning investors can lock in an 8.30 per cent return in less than two years.

Several other small finance banks are offering decent interest rates of 8.25 per cent. These include Utkarsh Small Finance Bank, Suryoday Small Finance Bank, and ESAF Small Finance Bank. Of these, Utkarsh Small Finance Bank provides an 8.25 per cent return for a deposit for just 666 days (approximately 22 months).

Also Read: Gold, Silver Rates Today: Gold Inches Higher, Silver Falls Rs 2,200 On MCX; Check Rates

Banks Offering Interest Below 8%

Many SFBs offer interest rates ranging from 7.75 per cent to 7.95 per cent. These include Ujjivan Small Finance Bank, Slice Small Finance Bank, and AU Small Finance Bank.

Are Deposits in SFBs Secure? 

The deposits in small finance banks remain under strict regulatory oversight, as they are licensed by the Reserve Bank of India (RBI). These institutions are specifically chartered to offer banking services to small businesses and underserved communities. Crucially, deposits up to Rs 5 lakh in these banks are fully insured and protected under the Deposit Insurance and Credit Guarantee Corporation (DICGC), effectively guaranteeing security for common investors.

(With Inputs From Jagran.com)


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