Fixed deposit rates offered by designated banks have been increasing for the past few months. Small Finance Bank (SFB) even offers fixed deposit rates of up to 9% for senior citizens. Rising FD rates lead to increased investor interest.
According to a report, there is greater interest in FD in the west of India, while less in the south. In addition, FD growth was less in rural and semi-urban areas compared to metropolitan and urban areas.
“The metropolitan market has around 60% of term deposits and is growing at 12% year-on-year, the best we’ve seen in recent years. The recovery has not been uniform in breadth. We’re seeing western India (30% of term deposits) ) region, while fixed deposits were also weak in the southern region,” Kotak Mahindra Bank said in a report shared with the media.
“The largest markets, such as metropolitan cities and urban areas, grew fastest, while rural and semi-urban areas remained fairly sluggish,” it added.
Best FD Rates Offered by Banks
Small Finance Bank is currently offering higher interest rates than leading banks like SBI, HDFC Bank, ICICI Bank, Axis Bank, PNB, Bank of Baroda etc.
For example, Unity Small Finance Bank offers up to 9% FD interest rate for seniors. The bank offers up to 8.5% interest on FDs to fixed depositors. Ujjivan Small Finance Bank offers senior citizens interest up to 8.75% on fixed deposits for a term of 80 weeks (560 days).
Among other banks, Utkarsh Small Finance Bank offers 8.5% interest on fixed deposits for 700 days for senior citizens. Similarly, Jana Small Finance Bank offers 8.5% interest on fixed deposits for 2 to 3 years for seniors, while Fincare Small Finance Bank also offers 8.5% FD interest for seniors.