FDs are a traditional way of investment, and most individuals choose this way to have a regular income for their living. Moreover, the principal amount remains safe in the FD. But, do you know that some small finance banks provide a better interest rate on savings accounts than leading PSU banks’ fixed deposits? In this article, we will compare PSU banks’ FD rates with small finance banks’ FDs and know which one provide higher interest rates to general citizens.
Small Finance Bank (SFBs) savings account interest rates
DCB Bank
The small finance bank DCB Bank provides a 7.75 per cent interest rate on balances from Rs 10 lakh to less than Rs 1 crore.
Suryoday Small Finance Bank
Suryoday Small Finance Bank offers general citizens a 7.50 per cent interest rate on balances of above Rs 10 lakh up to and including Rs 2 crore.
Utkarsh Small Finance Bank
This small finance bank gives general citizens a 7.50 per cent interest rate on incremental balance above Rs 5 lakh up to Rs 50 crore.
Ujjivan Small Finance Bank
This small finance bank offers 7.50 per cent interest rate to general citizens on above Rs 25 lakh.
PSU banks FD rates
State Bank of India (SBI)
The PSU bank SBI gives a 6.25 per cent, 6.30 per cent, and 6.05 per cent interest rates on 1-year, 3-year and 5-year FDs to general citizens.
Canara Bank
Canara Bank offers a 6.50 per cent interest rate to general citizens on all 1-year, 3-year, and 5-year tenure FDs.
Bank of Baroda (BoB)
The Bank of Baroda offers a 6.50 per cent interest rate on 1-year and 3-year FD each, while the PSU bank offers a 6.40 per cent interest rate on its 5-year FD.
Punjab National Bank (PNB)
The PSU bank offers a 6.40 per cent interest rate on 1-year and 3-year FD each, while the PSU bank offers a 6.50 per cent interest rate on its 5-year FD.
Conclusion
From the above examples, we can clearly understand that PSU banks are providing lower interest rates on FDs than small finance banks are providing on savings accounts.
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