Kolkata: No matter how spectacular the returns of the equity market are, fixed deposits are never going to lose their sheen to a vast section of Indian investors. The attraction of fixed deposits as an instrument of fixed income, in fact, goes up whenever there ins a downcycle in the equity market or even volatility, which scares the common citizen.
However, India is now on an interest rate downcycle since February 2025 when Reserve Bank of India (RBI) first slashed key policy rates for the first time in five years by 25 basis points and then again followed it up in April with the same quantum of rate cut. Inevitably, all banks and NBFCs in the country revised their interest rates on fixed deposits of different tenures. Now only three banks are offering higher than 9% rates on fixed deposits of any tenure. Let’s take a look at what are these banks and what rates are they offering whom and on what maturity period.
Unity Small Finance Bank interest rate
The highest rate of interest Unity Small Finance Bank is paying is for the tenure 1,001 days. The applicable rate is 8.6% for general customers and 9.10% for senior citizens. The point to note is that this bank is not offering any rate for any tenure that exceeds or even touches 9%. Therefore, it is a significant level that depositors should take note of. If the RBI keeps trimming Repo Rate — as it did in February and April — it is not likely that Unity SFB will continue this rate of interest for long.
Suryoday Small Finance Bank interest rate
The peak interest rate on FD that Suryoday Small Finance Bank is offering is for a period of five years. Significantly, FD for five years is also known as tax saver FDs since it offers income tax breaks as well. The applicable rate for senior citizens is 9.10% and that for general customers is 8.6%. On no other tenure is the 9% interest rate paid by the bank. According to the bank’s website this rate is supposed to change from June 1 when no tenures will offer 9% interest.
North East Small Finance Bank interest rate
This Guwahati-based bank is offering 9% interest rate for FDs of tenure 18 months 1 day to 18 months 2 days. The point to note is that the 9% rate is applicable to both general customers and senior citizens. Therefore, this seems to be the only bank that offers 9% rate on FDs to the general customers.
The days of high interes rates are over in India as the Reserve Bank is expected to progressively ease key policy rates, aided by the tailwind of benign retail inflation that has gone below the 4% mark. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
