Fixed deposits are a common and safe way to invest one’s hard-earned money. When compared to equities like stocks, SIPs, or mutual funds (MFs), bank FDs are generally considered the safer option. In terms of offering higher interest rates on term deposits or FDs, small finance banks tend to outdo commercial banks. Unity Bank, for instance, provides select maturities with a 9% interest rate for general customers. The bank’s interest rates for regular consumers range from 4.5% to 9%, with senior citizens earning an interest rate of 9.5% p.a. on fixed deposits invested for terms of 1001 days, while retail investors get 9% for the same term. These rates are effective as of May 2, 2023.
Meanwhile, Utkarsh Small Finance Bank offers a maximum interest rate of 8.25% for the general public and 9% for senior citizens, on deposits maturing in 700 days. On the other hand, Fincare Small Finance Bank provides fixed deposit interest rates ranging from 3% to 8.4% for general citizens, and 3.60% to 9.01% for senior citizens, with the highest rate of 9.01% offered on a tenure of 1000 days. These rates are applicable from March 24, 2023.
In contrast, SBI, HDFC Bank, and ICICI Bank offer an interest rate range of 3.00% to 7.10% p.a on FDs maturing in 7 days to 10 years, with senior citizens earning an additional interest rate of 3.50% to 7.60%. Axis Bank’s rates range from 3.50-7.20% p.a. to the general public, and 3.50-7.95% p.a. to senior citizens on tenures.
The Reserve Bank of India (RBI) has signaled a halt to interest rate hikes, indicating that the interest rate cycle may have reached its peak after hiking the repo rate by 2.5% since May 2022. For daily updates on Business News, Market News, and Breaking News Events, readers can download The Unlisted News News App.