FD Interest Rate: Most of the banks have started reducing the interest rates in all the segments. Recently, Suryoday Small Finance Bank has cut deposit rates.
small finance bank
Small Finance Banks offer customers more interest on fixed deposits than big banks. But now the days of small finance banks giving more than 7 percent interest on FD are coming to an end. Most banks have started reducing interest rates across all segments. Recently, Suryoday Small Finance Bank has cut deposit rates. Most of these banks are currently attractive for depositors looking for short term FDs.
The bank will cut FD rates by 25-100 basis points on different maturities from today i.e. June 21. The biggest impact of this deduction will be on FDs of 5 years. Now its interest rate will be reduced from 7.25 percent to 6.25 percent. The lowest deduction (25 bps) will be on FDs between 1 to 2 years. Here now 6.5 percent interest will be available, which was 6.75 percent earlier.
These banks cut interest rates
In the first week of June, Capital Small Finance Bank and Equitas Small Finance Bank also cut their interest rates. Capital Small Finance Bank is offering the highest 6.25 percent interest on 900 days FD and Equitas Small Finance Bank is offering the highest 6.5 percent on 888 days FD.
Fincare Small Finance Bank and Jana Small Finance Bank cut interest rates last month.
These banks are giving up to 7 percent interest
Amidst the cut in interest rates, only two small finance banks are offering 7 percent interest on FDs. Only Utkarsh Small Finance Bank and North East Small Finance Bank banks offer 7% interest on FDs. According to the bank’s website, Utkarsh Small Finance Bank is giving 7 percent interest on FDs for 700 days while North East Small Finance Bank is giving 7 percent interest on FDs of 777 days.
Most of these banks are currently attractive for depositors looking for short term FDs. Banks are offering interest rates between 6 per cent and 6.5 per cent on maturities of more than 1 year and up to 3 years. Let us tell you that the Reserve Bank of India started offering Small Finance Bank License about 6 years ago. Some micro finance institutions opt for the small finance bank license.
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