Bank FD Scheme : When it comes to safe and reliable investment options, bank fixed deposits (FDs) are often considered one of the most secure avenues compared to market-linked products. However, after the Reserve Bank of India (RBI) cut the repo rate multiple times, most banks also reduced the interest rates offered on fixed deposits. This has especially affected senior citizens who rely on FD interest income for their daily financial needs. Despite this, some small finance banks are still offering highly attractive interest rates—up to 8.8% per annum—on 3-year FD schemes. Let us take a closer look at these banks and the FD interest rates they are currently providing.
Suryoday Small Finance Bank (Suryoday SFB)
Suryoday Small Finance Bank is among the top choices for senior citizens looking to invest in a fixed deposit. The bank is offering up to 8.8% interest per annum on a 3-year FD for senior citizens. Regular customers can also benefit from this scheme, as they are offered up to 8.40% per annum on the same tenure.
In addition to the 3-year option, Suryoday SFB offers flexible FD tenure ranging from 7 days to 10 years, allowing investors to choose according to their financial goals.
Utkarsh Small Finance Bank FD Scheme (Utkarsh SFB)
Utkarsh Small Finance Bank is another attractive option for investors seeking higher returns. The bank offers up to 8.75% per annum interest on a 3-year FD for general customers. For senior citizens, the interest rate goes even higher since they receive an additional benefit, allowing them to earn up to 8.75% as well.
Like Suryoday, Utkarsh SFB also provides FD schemes with flexible tenures ranging from 7 days to 10 years. Investors can plan their deposits based on both short-term and long-term needs.
Unity Small Finance Bank FD Scheme
For those considering medium-term investments, Unity Small Finance Bank is also a strong contender. Senior citizens can earn up to 8.5% interest on a 3-year FD with Unity SFB. This makes it a suitable option for retirees who wish to balance safety with attractive returns.
Jana Small Finance Bank
Jana Small Finance Bank is also offering competitive FD returns. Senior citizens investing in a 3-year FD scheme can receive up to 8.25% interest per annum. This rate is relatively higher compared to many large public and private sector banks, making Jana SFB an option worth considering.
Important Things to Know Before Investing
While small finance banks are offering attractive interest rates, investors—especially senior citizens—must take certain precautions before investing:
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Check the Bank’s Credibility & Financial Health – Always evaluate the bank’s financial stability and trustworthiness. This ensures your deposits remain safe in the long run.
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Insurance Coverage (DICGC) – Deposits in scheduled banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). This insurance provides coverage of up to ₹5,00,000 per depositor, per bank, including both principal and interest. This offers an additional layer of security for depositors.
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Evaluate Terms & Conditions – Before locking your money into an FD, carefully review the tenure, interest rate, and rules regarding premature withdrawal. Some banks impose penalties for early withdrawal, which may reduce your overall returns.
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Seek Professional Advice – Since every investor’s financial needs and risk profile are different, it is advisable to consult a financial advisor before making any major investment decision.
Disclaimer
This article is for informational purposes only. It does not constitute investment advice. Before investing in any FD scheme or taking financial risks, consult your financial advisor to make decisions based on your personal financial situation.