Bank FD Scheme : These days, most people prefer to invest their money in bank fixed deposits. The main reason behind this is that fixed deposits are considered very safe, and the investor knows in advance exactly how much interest they will earn on their deposit. Let’s find out how much interest different banks are currently offering on fixed deposits.
If you are also planning to invest 20% of your income somewhere safe with assured returns, then a bank fixed deposit scheme can be an excellent option for you. Many banks are currently offering attractive “bumper returns” on fixed deposits.
Investors can earn good profits with low risk through fixed deposits. Everyone knows that fixed deposits are not only safe but can also serve as a reliable source of regular income.
If you are planning to invest in a fixed deposit at present, then small finance banks may be a better option, as they offer higher returns. For example, the State Bank of India (SBI), the country’s largest government bank, offers 6.25% to 6.45% interest on fixed deposits of 1 to 3 years. In comparison, small finance banks offer 7.10% to 7.77% interest for the same tenure, making them a good option for earning higher returns with low risk. Let’s explore the details below.
Bank FD Scheme : Interest Rates Offered by Various Banks on 1–3 Year FD Schemes
If you want to invest in a 1 to 3-year fixed deposit, small finance banks are offering excellent interest rates. Jana Small Finance Bank offers a bumper rate of 7.77%, which means you can earn ₹7,770 annually on a deposit of ₹1 lakh. Suryaoday Bank offers 7.75%, Utkarsh 7.65%, Equitas and ESAF 7.6%, Ujjivan 7.45%, and AU Bank 7.1% interest. These rates are higher than those offered by government banks, providing investors with better returns.
Note: These interest rates are based on a deposit amount of up to ₹1 lakh for a period of 1 to 3 years. The rates are subject to change from time to time.
Bank FD Scheme : Small Finance Banks Offer Higher Returns Compared to Large Banks Like SBI
Yes, compared to large banks like SBI, small finance banks offer much higher returns on fixed deposits. Many small banks provide interest rates above 7%, which is higher than those of traditional banks. For individuals seeking safe investments with better short-term returns, these options can be ideal.
However, before investing in a fixed deposit, it is very important to consider the bank’s credibility, your financial goals, and the maturity period. This article is for informational purposes only and should not be considered investment advice. It is recommended to consult a financial advisor before making investment decisions.
