Fixed Deposits (FDs) are a popular investment option among individuals seeking a safe and reliable way to grow their savings. FDs come with plenty of advantages for investors looking for safe investments. FDs allow investors to deposit a lump sum amount in a bank or financial institution for a fixed tenure at a predetermined interest rate. One of the primary advantages of FDs is the assured rate of return. Unlike stocks or mutual funds, where returns can fluctuate based on market conditions, FDs provide a fixed interest rate that remains constant throughout the investment period. This feature makes FDs an ideal choice for those looking to preserve their capital while earning interest.
The recent cut in the Reserve Bank of India‘s (RBI) repo rate by 25 basis points to 6.25% marks a significant shift in the financial landscape, particularly affecting FDs. This is the first rate cut in nearly five years, aimed at stimulating economic growth by making borrowing cheaper. However, this decision has raised concerns among FD investors, as banks are likely to respond by lowering interest rates on new FDs. Despite the rate cut, FDs still look attractive, particularly to Small Finance Banks (SFB). As of February 2025, several banks are offering attractive FD interest rates exceeding 9%.
Here are five banks that stand out for their competitive rates:
Unity Small Finance Bank (USFB) is one of the growing SFBs that offer high interest rates on FDs to their customers. The bank recently changed its FD rates, effective February 12, 2025. The bank offers 8.25% interest rates on 6 months to 201 days of tenure and 8.50% interest on specific tenures of 501 days and 701 days, respectively. The bank offers the highest 9% interest on 1001 days of special tenure. These interest rates are effective on general customers on deposits below Rs 3 crore. Senior Citizens will get an additional 0.50% interest over and above the general interest rates.
USFB FD Interest Rates below Rs 3 Cr. effective from Feb 12, 2025
| Tenure | General FD Rates % p.a. | |
| 7 – 14 Days | 4.50% | 4.50% |
| 15 – 45 Days | 4.75% | 4.75% |
| 46 – 60 Days | 5.75% | 6.25% |
| 61 – 90 Days | 6.00% | 6.50% |
| 91 – 164 Days | 6.25% | 6.75% |
| 165 Days – 6 Months | 6.25% | 6.75% |
| > 6 Months – 201 Days | 8.25% | 8.75% |
| 202 – 364 Days | 7.25% | 7.75% |
| 1 Year | 7.85% | 8.35% |
| 1 Year 1 day | 7.85% | 8.35% |
| > 1Year 1 day – 500 days | 7.85% | 8.35% |
| 501 Days | 8.50% | 9.00% |
| 502 Days – 18 Months | 7.85% | 8.35% |
| > 18 Months – 700 Days | 7.90% | 8.40% |
| 701 Days | 8.50% | 9.00% |
| 702 Days – 1000 Days | 7.90% | 8.40% |
| 1001 Days | 9.00% | 9.50% |
| 1002 Days – 3 Year | 8.15% | 8.65% |
| > 3 Year – 5 Year | 8.15% | 8.65% |
| > 5 Year – 10 Year | 7.50% | 8.00% |
Source: theunitybank.com
North East Small Finance Bank (NESFB) is a prominent player in the small finance banking sector, known for offering competitive interest rates on FDs. The bank offers an attractive interest rate structure for FDs, effective January 18, 2025. The bank offers callable and non-callable FDs to their customers. Senior citizens benefit from an additional interest rate of 0.50% over the general rates, making it a favorable option for them. The highest interest rate of 9.00% is applicable for FDs with a tenure ranging from 18 months 1 day to 36 months. The bank offers the second highest FD rate, 8.75%, on a tenure of 12 months 1 day to 18 months.
NESFB FD Interest Rates below Rs 3 Cr. effective from Jan 18, 2025
| Tenure | Callable FDs | Non-Callable FDs | ||
| Regular | Senior | Regular | Senior | |
| 7 – 29 Days | 3.50% | 4.00% | 3.75% | 4.25% |
| 30 – 45 Days | 4.25% | 4.75% | 4.50% | 5.00% |
| 46 Days to 3 months | 4.75% | 5.25% | 5.00% | 5.50% |
| 3 months 1 Day to 6 months | 6.25% | 6.75% | 6.50% | 7.00% |
| 6 months 1 Day to 12 months | 7.00% | 7.50% | 7.25% | 7.75% |
| 12 months 1 Day to 18 months | 8.75% | 8.75% | 9.00% | 9.00% |
| 18 months 1 Day to 36 months | 9.00% | 9.00% | 9.25% | 9.25% |
| 36 months 1 Day to 60 months | 8.00% | 8.50% | 8.25% | 8.75% |
| 60 months 1 Day to 120 months | 6.25% | 6.75% | 6.50% | 7.00% |
Source: nesfb.com
Suryoday Small Finance Bank (SSFB) is a notable institution in the small finance banking sector, recognized for its competitive interest rates on FDs. Effective February 1, 2025, the bank has revised its FD rates, offering an attractive interest rate structure for its customers. Senior citizens benefit from an additional interest rate of 0.50% over the general rates, making it a favorable option for them. The highest interest rate of 8.60% is applicable for FDs with a tenure of 5 years, while the second highest rate of 8.25% is available for tenures ranging from 1 year, above 1 year upto 15 months, above 15 months upto 2 years, and above 2 years up to 5 years, respectively for the general public. These rates apply to deposits below Rs 3 crore, providing a secure investment avenue for both general customers and senior citizens looking to grow their savings effectively.
SSFB FD Interest Rates below Rs 3 Cr. effective from Feb 01, 2025
| Period | Interest Rate (% p.a) | Senior Citizen Rate (% p.a) |
| 7 days to 14 days | 4.00% | 4.50% |
| 15 days to 45 days | 4.25% | 4.75% |
| 46 days to 90 days | 4.50% | 5.00% |
| 91 days to 6 months | 5.00% | 5.50% |
| 6 Month 1 Day | 7.25% | 7.75% |
| Above 6 Month 1 Day to 9 Months | 5.50% | 6.00% |
| Above 9 months to less than 1 Year | 6.00% | 6.50% |
| 1 Year* | 8.25% | 8.75% |
| Above 1 Year upto 15 months | 8.25% | 8.75% |
| Above 15 months to 2 years | 8.25% | 8.75% |
| Above 2 Years to 3 Years | 8.25% | 8.75% |
| Above 3 Years to less than 5 Years | 6.75% | 7.25% |
| 5 Years | 8.60% | 9.10% |
| Above 5 years to 10 years | 7.25% | 7.75% |
Source: suryodaybank.com
Shivalik Small Finance Bank (Shivalik SFB) is a key player in the small finance banking sector, recognized for providing competitive interest rates on FDs. Effective February 18, 2025, the bank has updated its FD rates, offering an appealing interest rate structure for its customers. Senior citizens enjoy an additional interest rate of 0.50% over the general rates, making it a favorable option for them. The highest interest rate of 8.55% is applicable for FDs with a tenure ranging from 12 months 1 day to less than 18 months, while the second highest rate of 8.30% is available for tenures from 18 months to 24 months. These rates apply to deposits below Rs 3 crore, providing a secure investment avenue for both general customers and senior citizens looking to grow their savings effectively.
Shivalik SFB FD Interest Rates below Rs 3 Cr. effective from Feb 18, 2025
| Tenure | Callable FDs | Non-Callable FDs | ||
| Regular | Senior | Regular | Senior | |
| 15 days to 29 days | 3.75% | 4.25% | 3.80% | 4.30% |
| 30 days to 90 days | 4.25% | 4.75% | 4.30% | 4.80% |
| 91 days to 180 days | 4.75% | 5.25% | 4.80% | 5.30% |
| 6 months to less than 9 months | 6.00% | 6.50% | 6.05% | 6.55% |
| 9 months to 12 months | 6.00% | 6.50% | 6.05% | 6.55% |
| 12 months 1 day to < 18 months | 8.55% | 9.05% | 8.60% | 9.10% |
| 18 months to 24 months | 8.30% | 8.80% | 8.35% | 8.85% |
| 24 months 1 day to 36 months | 7.50% | 8.00% | 7.55% | 8.05% |
| 36 months 1 day to 60 months | 6.50% | 7.00% | 6.55% | 7.05% |
| 60 months 1 day to 120 months | 6.25% | 6.75% | 6.30% | 6.80% |
| Tax saver FD 5 Years (60 months) | 6.50% | 7.00% | NA | NA |
Source: shivalikbank.com
ESAF Small Finance Bank (ESAF SFB) is a prominent player in the Indian banking sector, focusing on financial inclusion and catering to unbanked and underbanked populations, particularly in rural and semi-urban areas. The bank is recognized for offering competitive interest rates on FDs, providing an attractive interest rate structure for its customers. The bank has recently updated its FD interest rates, effective January 20, 2025. Senior citizens benefit from an additional interest rate of 0.50% over the general rates, making it a favorable option for them. The highest interest rate of 8.38% is applicable for FDs with a special tenure of 888 days, while the bank offers 8% interest on 2 years to 887 days and 889 days to less than 3 years, respectively. These rates apply to deposits below Rs 3 crore for the general public.
ESAF SFB FD Interest Rates below Rs 3 Cr. effective from Jan 20, 2025
| Period | Normal Rate (%) | Rate for Senior Citizens (%) |
| 7 days to 14 days | 4.00% | 4.50% |
| 15 days to 59 days | 4.50% | 5.00% |
| 60 days to 90 days | 5.00% | 5.50% |
| 91 days to 182 days | 5.25% | 5.75% |
| 183 days to 1 year | 6.00% | 6.50% |
| 1 year 1 day to less than 2 years | 7.75% | 8.25% |
| 2 years to 887 days | 8.00% | 8.50% |
| 888 days | 8.38% | 8.88% |
| 889 days to less than 3 years | 8.00% | 8.50% |
| 3 years to less than 5 years | 6.75% | 7.25% |
| 5 years to 10 years | 6.25% | 6.75% |
Source: esafbank.com
These banks have recently adjusted their FD offerings to attract investors seeking higher returns in a low-interest-rate environment. It’s essential to compare the terms and conditions, including any penalties for early withdrawal, before making an investment decision. If you are considering opening an account with any of these banks, ensure you review their specific requirements and services to find the best fit for your financial goals.
Disclaimer: The above information is for educational purposes and based on the latest research and development available. However, it may not fully reflect all the current aspects of the subject matter. Moneydaily.in advises readers to visit the respective Bank’s website for further information.
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