Small Finance Banks Offer Up to 8% FD Interest, Outpacing Large Banks
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News18•18-01-2026, 13:36
Small Finance Banks Offer Up to 8% FD Interest, Outpacing Large Banks
- •Small Finance Banks are offering Fixed Deposit (FD) interest rates up to 8%, significantly higher than large public and private banks.
- •Suryoday Small Finance Bank and Shivalik Small Finance Bank lead with 8% interest; Shivalik offers this for a shorter 1 year 10 month tenure.
- •Other banks like Jana Small Finance Bank (7.77% for 3 years) and Utkarsh Small Finance Bank (up to 8% for senior citizens) also offer competitive rates.
- •Deposits up to Rs 5 lakh per depositor are insured by DICGC, providing security for investors.
- •FD interest is taxable, but forms 15G/15H can be submitted for exemption, and senior citizens get deductions under Section 80TTB.
Why It Matters: Small Finance Banks provide attractive, secure FD rates up to 8%, offering a strong alternative for conservative investors.
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