Before that, take a look at the highest interest rates offered by small finance banks. Do keep in mind that these interest rates are offered on deposits of up to Rs 2 crore.
Highest FD interest rates in small finance banks
Unity Small Finance Bank
Unity Small Finance Bank is offering a 9% interest rate for FDs maturing in 1001 days.
Suryoday Small Finance Bank
Suryoday Small Finance Bank is offering an interest rate of 8.65% for FDs maturing in two years and two days.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank is offering an interest rate of 8.5% for FDs maturing in 15 months.
Jana Small Finance Bank
Jana Small Finance Bank is offering an interest rate of 8.5% for FDs maturing in 365 days.
Equitas Small Finance Bank
Equitas Small Finance Bank is offering an interest rate of 8.5% for FDs maturing in 444 days.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank is offering an interest rate of 8.5% for FDs maturing between two years and three years.
Highest FD interest rates by small finance banks
| Bank Name | Highest Interest rate | Tenure |
| Unity Small Finance Bank | 9% | 1001 days |
| Suryoday Small Finance | 8.65% | 2 years 2 days |
| Ujjivan Small Finance Bank | 8.50% | 15 months |
| Jana Small Finance Bank | 8.50% | 365 days |
| Equitas Small Finance Bank | 8.50% | 444 days |
| Utkarsh Small Finance Bank | 8.50% | two years and three years |
Source: Paisabazar.com as of April 27, 2024
ESAF Small Finance Bank
ESAF Small Finance Bank offers an interest rate of 8.25% for FDs maturing between two years and less than three years.
AU Small Finance Bank
AU Small Finance Bank is offering an interest rate of 8% for FDs maturing in 18 months.
Owing to their business model, small finance banks cannot be kept on par with other scheduled commercial banks. Hence FDs from small finance banks are also not comparable in terms of risk profile to full-service banks. However, when it comes to insurance, do keep in mind that deposits in small finance banks are also insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) to the tune of Rs 5 lakh. Most of the experts advise layman retail investors to keep their exposure limited in FDs of small finance banks so that it is well within DICGC cover of Rs 5 lakh including principal and interest.
