Small Finance Bank offers excellent returns on fixed deposits
Many individuals aim to save a portion of their income or pension to fulfill their needs.
While various schemes exist to achieve this goal, fixed deposits (FDs) have emerged as a popular choice.
In May 2022, the Reserve Bank of India began increasing the repo rate to control inflation, leading many banks to raise their FD interest rates to provide relief to customers.
One such bank is Suryoday Small Finance Bank, which is offering a staggering interest rate of 9.6 percent.
Excellent returns for senior citizens
FDs have become a preferred investment option, and Suryoday Small Finance Bank is offering bumper benefits to those looking to invest in them.
Senior citizens are being offered a maximum interest rate of 9.6 percent on a five-year FD.
If you invest Rs 1 lakh in a five-year FD, you can earn a profit of Rs 60,694.
Moreover, if you reinvest the entire amount along with the interest for the next five years, your investment of Rs 1 lakh will be approximately Rs 2.5 lakh.
Suryoday Small Finance Bank has recently increased its interest rates to over 9 percent for ordinary citizens.
The bank is offering more than 9 percent interest not only to senior citizens but also to ordinary citizens.
If you invest for five years, you will receive an interest rate of 9.10 percent.
In March of last year, the bank had revised its FD interest rates, increasing them by 75 to 125 basis points for FDs ranging from five to ten years.
Small finance banks offer higher interest rates
FDs are investment accounts where funds are deposited for a specific maturity period, and investors receive attractive interest rates.
The deposited amount cannot be withdrawn before maturity. In recent years, small banks have also increased their FD interest rates to attract investors.
However, most major banks, such as State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), ICICI Bank, Kotak Mahindra Bank, and Axis Bank, offer annual returns ranging from 7.5% to 8% on their FDs.
In contrast, Small Finance Banks (SFBs) offer interest rates exceeding 9 percent on fixed deposits.
Benefits of Fixed Deposit
FDs are a safe investment option and remain unaffected by market fluctuations.
The interest rate at which you invest remains constant, and you receive the deposited amount along with the interest upon maturity.
Additionally, FDs offer higher interest rates than normal savings accounts, and some banks also provide loan facilities based on FDs.
