Most banks’ fixed deposit (FD) rates are currently between 7-9 per cent. However, these five small finance banks (SFBs) are offering over 9.0 per cent to senior citizens. Here are the details:

Utkarsh Small Finance Bank

This bank last revised its FD rates on June 7, 2024, and offers the highest 9.10 per cent interest to seniors. The rates for seniors are:

• 7.10 per cent for 181 days to 364 days
• 8.60 per cent for 365 days to 699 days
• 8.85 per cent for 700 days to less than two years
• 9.10 per cent for two years (730 days) to three years (1095 days)
• 8.85 per cent for above three years to less than four years
• 8.35 per cent for four years (1461 days) up to 1499 days
• 9.10 per cent for 1500 days
• 8.35 per cent for 1501 days up to five years (1826 days)
• 7.85 per cent for above five years to 10 years.

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Unity Small Finance Bank

Unity SFB revised its rate last month on July 8, 2024. Senior citizens can avail of the highest 9.50 per cent rate with this bank. It offers:

• 6.75 per cent for 165 days to six months
• 9.00 per cent for more than six months to 201 days
• 7.75 per cent for 202 to 364 days
• 8.35 per cent for one year to 18 months (except 501 days)
• 9.25 per cent for 501 days
• 8.40 per cent for more than 18 months to 1000 days (except 701 days)
• 9.25 per cent for 701 days
• 9.50 per cent for 1001 days
• 8.65 per cent for 1002 days to five years
• 8.00 per cent for more than five years to 10 years.

Suryoday Small Finance Bank

This SFB offers a maximum of 9.10 per cent to senior citizens. Here are the interest rates for them:

• 5.50 per cent for 91 days to six months
• 6.00 per cent for above six months to nine months
• 6.50 per cent for above nine months to less than one year
• 7.35 per cent for one year
• 8.75 per cent for above one year up to 15 months
• 9.00 per cent for above 15 months to two years
• 9.10 per cent for above two years to three years
• 7.25 per cent for above three years to less than five years
• 8.75 per cent for five years
• 7.75 per cent for above five years to 10 years.

The bank last revised its FD rates on April 22, 2024.

Shivalik Small Finance Bank

The highest rate Shivalik offers to seniors is 9.05 per cent for 18-24 month tenure as per the revision done on June 28, 2024. Let us look at the rates for other tenures.

• 5.25 per cent for 91 days to 180 days
• 6.50 per cent for six months to 12 months
• 8.80 per cent for 12 months one day to less than 18 months
• 9.05 per cent for 18 months to 24 months
• 8.00 per cent for 24 months one day to 36 months
• 7.00 per cent for 36 months one day to 60 months
• 6.75 per cent for 60 months one day to 120 months.

North-East Small Finance Bank

This bank offers the highest 9.50 per cent to seniors, according to its website. The other rates are:

• 6.75 per cent for 91 to 180 days
• 7.50 per cent for 181 to 365 days
• 9.25 per cent for 366 to 545 days
• 9.50 per cent for 546 to 1111 days
• 8.50 per cent for 1112 to 1825 days
• 6.75 per cent for 1826 to 3650 days (5 years to 10 years).

Recent Important Developments

Due to the widening gap between credit and deposits, the Reserve Bank of India (RBI) has called on the banks to focus on household savings and maintain an optimum credit-deposit ratio. Although may not be directly related, several banks have recently launched special FDs to attract deposits. For example, RBL Bank’s Vijay FD, State Bank of India’s SBI Amrit Vrishti scheme, Bank of Baroda’s Monsoon Dhamaka scheme, and Indian Bank’s IND Super 400-day FD.

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Small finance banks typically offer higher interest rates on FDs than scheduled public or private sector banks to attract more deposits. Although their branches are not extensive, deposits with these banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to Rs 5 lakh per depositor.