Recently, several small finance banks (SFBs) have adjusted their fixed deposit (FD) interest rates, with some offering attractive rates of up to 9.25% for 18 months 1 day to 36 months, particularly on deposits above Rs 3 crore. Currently, SFBs in India are offering competitive FD rates, particularly for three-year tenures. These rates are applicable to deposits below Rs 3 crore and are primarily available for individuals under the age of 60.
Here are the details regarding three notable banks that recently changed their FD rates:
1. Shivalik Small Finance Bank
Shivalik Small Finance Bank, one of the leading small finance banks, has recently changed their interest rates on FD for callable and non-callable. According to the bank’s official website, the interest rates for the general public lie from 3.50% to 8.80% for tenure ranging from 7 days to 120 months. These rates are applicable on deposits below Rs 3 crore.
Further, the interest rates on deposits greater than 1 crore to less than Rs 3 crore range from 3.65% to 8.95% for the general public for tenures ranging from 7 days to 120 months. These deposits are non-callable, which means they come without a premature withdrawal facility.
- Interest Rate: 8.60% for a 3-year FD and 6.85% for a 1-year FD.
- Senior Citizens: Offers an additional interest rate for senior citizens on specific tenures.
- Premature Withdrawal: The bank will charge 1% penalty over the interest rate applicable for the deposit period.
SSFB FD Interest Rates w.e.f. Jan 22, 2025
Callable FD with Premature-Withdrawal Facility
| Tenure | Regular | Senior |
| 7 days to 14 days | 3.50% | 4.00% |
| 15 days to 29 days | 3.75% | 4.25% |
| 30 days to 90 days | 4.25% | 4.75% |
| 91 days to 180 days | 4.75% | 5.25% |
| 6 months to less than 9 months | 6.00% | 6.50% |
| 9 months to 12 months | 6.00% | 6.50% |
| 12 months 1 day to < 18 months | 8.80% | 9.30% |
| 18 months to 24 months | 8.30% | 8.80% |
| 24 months 1 day to 36 months | 7.50% | 8.00% |
| 36 months 1 day to 60 months | 6.50% | 7.00% |
| 60 months 1 day to 120 months | 6.25% | 6.75% |
| Tax saver FD 5 Years (60 months) | 6.50% | 7.00% |
Callable FD without Premature-Withdrawal Facility for Deposits greater than 1 Cr. to less than 3 Cr.
| Tenure | Regular | Senior |
| 7 days to 14 days | 3.65% | 4.15% |
| 15 days to 29 days | 3.90% | 4.40% |
| 30 days to 90 days | 4.40% | 4.90% |
| 91 days to 180 days | 4.90% | 5.40% |
| 6 months to less than 9 months | 6.15% | 6.65% |
| 9 months to 12 months | 6.15% | 6.65% |
| 12 months 1 day to < 18 months | 8.95% | 9.45% |
| 18 months to 24 months | 8.45% | 8.95% |
| 24 months 1 day to 36 months | 7.65% | 8.15% |
| 36 months 1 day to 60 months | 6.65% | 7.15% |
| 60 months 1 day to 120 months | 6.40% | 6.90% |
Source: shivalikbank.com
2. ESAF Small Finance Bank
ESAF Small Finance Bank is another small finance bank that has recently altered its FD rates. Thank offers interest rates ranging from 4% to 8.38% on regular FD for tenure ranging from 7 days to 10 years, according to the bank’s official website. The offers additional interest to senior citizens over and over the regular FD rates.
- Interest Rate: Offers an interest rate of 8.80% for regular deposits and 9.30% for senior citizen deposits for 12 months to 24 months.
- Senior Citizens: The bank offers additional 0.50% interest on FD to senior citizens over the regular FD rates.
- Tenure Options: The bank offers various FD tenures, catering to different savings goals.
ESAFSFB FD Interest Rates for Less Than 3 Crore w.e.f. Jan 20, 2025
| Tenure | Regular | Senior |
| 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
3. North East Small Finance Bank (NESFB)
North East Small Finance Bank has recently altered their interest rates on FD. The interest rates range from 3.50% to 9% tenure ranging from 7 days to 120 months for deposits up to 3 crore on callable FDs and for non-collable the interest rates range from 3.75% to 9.25%. Further, the senior citizens will get additional 0.50% interest over general FD rates.
- Interest Rate: 9% for regular and senior citizens FDs on callable FDs, and 9.25% to both regular and senior citizen FDs on non-callable FDs. These interest rates are applicable on a tenure of 18 months 1 day to 36 months.
- Senior Citizens: Higher rates available, reaching up to 9.25% for longer tenures, particularly 18 months 1 day to 36 months.
- Premature Withdrawal: The bank will charge 1% penalty over the interest rate applicable for the deposit period.
NESFB FD Interest Rates For Deposits Upto Rs 3 Crore W.e.f. Jan 18, 2025
Callable FDs
| Tenure | Regular | Senior |
| 7 – 29 Days | 3.50% | 4.00% |
| 30 – 45 Days | 4.25% | 4.75% |
| 46 Days to 3 months | 4.75% | 5.25% |
| 3 months 1 Day to 6 months | 6.25% | 6.75% |
| 6 months 1 Day to 12 months | 7.00% | 7.50% |
| 12 months 1 Day to 18 months | 8.75% | 8.75% |
| 18 months 1 Day to 36 months | 9.00% | 9.00% |
| 36 months 1 Day to 60 months | 8.00% | 8.50% |
| 60 months 1 Day to 120 months | 6.25% | 6.75% |
Non-Callable FDs
| Tenure | Regular | Senior |
| 7 – 29 Days | 3.75% | 4.25% |
| 30 – 45 Days | 4.50% | 5.00% |
| 46 Days to 3 months | 5.00% | 5.50% |
| 3 months 1 Day to 6 months | 6.50% | 7.00% |
| 6 months 1 Day to 12 months | 7.25% | 7.75% |
| 12 months 1 Day to 18 months | 9.00% | 9.00% |
| 18 months 1 Day to 36 months | 9.25% | 9.25% |
| 36 months 1 Day to 60 months | 8.25% | 8.75% |
| 60 months 1 Day to 120 months | 6.50% | 7.00% |
Source: nesfb.com
Additional Insights on FDs
Safety Considerations: While these SFBs offer attractive interest rates on FDs, investors should be aware of the risks associated with these banks compared to larger commercial banks. However, the Deposit Insurance Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India (RBI), insures deposits up to Rs 5 lakh, which is a critical point for risk management.
Market Trends: These changes reflect the competitive landscape among SFBs; they strive to attract depositors by offering higher returns compared to traditional banks. The interest rates on FDs have seen a rise as SFBs compete with larger banks such as SBI, ICICI Bank, and HDFC Bank, often offering rates that exceed those of their larger counterparts.
Disclaimer: The above content is in the public domain. MoneyDaily.in advises readers to do their own research or consult with a financial or investment advisor before making any investment decisions.
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