Highest Fixed Deposit Interest Rates: Small finance banks are at present offering engaging interest rates on one-year fixed deposits (FDs) for quantities lower than Rs 3 crore. Investors can earn up to 8.25% interest on their deposits, which is a aggressive fee within the present market.
Highest FD Rates For 1-Year Fixed Deposits
- Among the small finance banks, Jana Small Finance Bank and Ujjivan Small Finance Bank are main the pack with an interest fee of 8.25% on their one-year FDs. Equitas Small Finance Bank follows intently with an interest fee of 8.2% for a similar tenure.
- Utkarsh Small Finance Bank gives an 8% interest fee on its one-year FDs, whereas Unity Small Finance Bank supplies a barely decrease fee of seven.85%.
- AU Small Finance Bank, on the opposite hand, gives a 7.25% interest fee for deposits maturing in a single yr.
Source: ET report quoting Paisabazaar information as on September 25, 2024
When contemplating investing in fixed deposits provided by small finance banks, it is essential to needless to say whereas these deposits are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, consultants recommend continuing with warning.The distinctive enterprise mannequin of small finance banks could end in a barely totally different threat profile in contrast to scheduled industrial banks.
To reduce potential dangers, monetary advisors suggest that buyers restrict their investments in small finance financial institution FDs to an quantity that’s coated by the DICGC insurance coverage, states an ET report.
It is essential to word that these interest rates are topic to change and will range relying on the financial institution’s insurance policies and market situations. Investors ought to rigorously take into account their monetary objectives and threat tolerance earlier than investing in any fixed deposit scheme.
The Reserve Bank of India (RBI) opted to preserve the repo fee at its present degree throughout the latest financial coverage evaluation performed in August. However, monetary analysts and economists predict that this resolution may be the ultimate pause earlier than the central financial institution initiates a sequence of interest fee reductions.
Consequently, the interest rates provided on financial institution fixed deposits are possible to expertise a gradual decline over the upcoming months.
