High-Yield FDs: Small Finance Banks Offer Attractive Rates for Seniors

Top Small Finance Banks Offering High FD Rates for Senior Citizens

Senior citizens looking to maximize returns on their savings can now earn interest rates of up to 8.75% on one-year fixed deposits (FDs) at select small finance banks. This high return is available on deposits below ₹3 crore, providing senior investors with attractive options for short-term investments. Here is a comparison of current rates from leading small finance banks offering top FD rates for one-year maturity.

Leading Small Finance Banks Offering High FD Rates

• Jana Small Finance Bank: Offers senior citizens an interest rate of 8.75% on FDs maturing in one year.

• Ujjivan Small Finance Bank: Also offers an 8.75% interest rate on one-year FDs for senior citizens.

• Equitas Small Finance Bank: Provides an 8.6% interest rate on one-year FDs for senior citizens.

• Utkarsh Small Finance Bank: Matches Equitas with an 8.6% rate for senior citizens’ one-year FDs.

• Suryoday Small Finance Bank: Offers an 8.55% interest rate on one-year FDs for seniors.

• Unity Small Finance Bank: Provides an interest rate of 8.35% on one-year FDs for senior citizens.

Safety Considerations for Small Finance Bank FDs

Deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) for up to ₹5 lakh. However, experts advise that investors approach with caution, as the risk profile of small finance banks may differ from traditional commercial banks due to their unique business models. To minimize risk, it’s suggested that senior citizens keep their investment within the ₹5 lakh DICGC coverage limit.

Key Details on Fixed Deposits at Jana Small Finance Bank

As of November 9, 2024, Jana Small Finance Bank notes that interest is calculated on the actual number of days in the year (365 or 366 for leap years). The term of the deposit is based on days, and for premature withdrawals, interest is paid at the applicable rate for the duration held, minus a penalty:

• For deposits under ₹3 crore: 1% penalty on the contracted rate.

• For deposits of ₹3 crore or above: 1% penalty applies.

Senior citizens interested in these options can explore one-year FDs as a way to maximize returns while considering coverage and withdrawal policies of small finance banks.