According to the experts investors must keep their exposure limited in FDs of small finance banks so that it will fall within the purview of DICGC cover of Rs 5 lakh rs including principal and interest.
Small finance banks offer better interest rates on fixed deposits (FDs). There are some banks which offer interest rates on FDs up to 9%. The fixed deposit interest rates given by small finance banks are higher.
But an important thing, which must be noted in case of small finance banks FDs, is that their business model cannot be compared to commercial banks, nor can it be compared in terms of risk profile to full-service banks.
Kindly note that the interest rates are offered on deposits of up to Rs 2 crore.
List Of small finance banks Offer Highest FD Interest Rates
Unity Small Finance Bank
Unity Small Finance Bank offers a 9% interest rate for FDs maturing in 1001 days.
Suryoday Small Finance Bank
Suryoday Small Finance Bank offers an 8.65% interest rate for FDs maturing in two years and two days.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank offers 8.5% of an interest rate for FDs maturing in 15 months.
Jana Small Finance Bank
Jana Small Finance Bank offers 8.5% an interest rate for FDs maturing in 365 days.
Equitas Small Finance Bank
Equitas Small Finance Bank offers an interest rate of 8.5% for FDs maturing in 444 days.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank offers an interest rate of 8.5% for FDs maturing between two years and three years.
ESAF Small Finance Bank
ESAF Small Finance Bank offers an interest rate of 8.25% for FDs maturing between two years and less than three years.
AU Small Finance Bank
AU Small Finance Bank offers an interest rate of 8% for FDs maturing in 18 months.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice.)