These 9 small finance banks are offering higher interest rates on FDs than government banks.

New Delhi. With investment simplicity, guaranteed returns, various tenure options and high liquidity, Fixed Deposit i.e. FD is one of the most preferred investment options in our country. If you are thinking of investing in Fixed Deposit i.e. FD then this news is useful for you.

The Reserve Bank of India kept the repo rate at 6.5 percent for the ninth time in a row this month, prompting many banks to hike their FD interest rates. Due to RBI’s stance, many public, private and small finance banks are offering attractive interest rates on FDs. Many of the small finance banks in the country are offering much higher interest rates to their investors as compared to the public sector banks.

Highest interest rate period

1. AU Small Finance Bank 18 months 8%
2. Equitas Small Finance Bank 444 days 8.5%
3. EASF Small Finance Bank 8.25% 2 years to less than 3 years
4. Jana Small Finance Bank 365 days to 1095 days 8.25%
5. North East Small Finance Bank 546 days to 1111 days 9%
6. Suryoday Small Finance Bank 2 years 2 days 8.65%
7. Ajivan Small Finance Bank 12 months 8.25%
8. Unity Small Finance Bank 1001 9%
9. Utkarsh Small Finance Bank 2 years to 3 years, 1500 days 8.25%

Is it safe to keep money in these small finance banks?
Now the question arises whether it is safe to keep money in Small Finance Bank? In case of bank collapse or bankruptcy, the only relief a depositor has is the insurance cover provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Insurance cover on bank deposits under DICGC is up to Rs 5 lakh. Insurance cover provided by DICGC works on deposits like Savings Accounts, FDs, Current Accounts, RDs etc.

If your money is deposited in a bank, you can check if it is registered for deposit insurance by clicking on the link below.

Here is the link- https://www.dicgc.org.in/FD_ListOfInsuredBanks.html

Tags: Bank FD, FD Rates, Fixed Deposits