Are you planning to start a fixed deposit at bank…?
Now the small finance banks offering a high rate interest in fixed deposit. The banks such as HDFC and ICICI banks provide only an interest rate 6.75% and Axis bank gives approximately 6.85% only. The maximum interest provided by the private bank is 7.3% and the small finance banks are offering an interest rate up to 9%. In addition, to compare all small finance banks, ESAF provide the high rate of interest in fixed deposits. An important point is that we are able to pay income tax on every fixed deposit. There are several small financing banks are opened. Those are;
1. ESAF small finance bank
The ESAF got permission to open from the Reserve Bank of India in the year 2015. This small finance bank receives an ‘in principle’ approval from the Reserve Bank of India. In the year 2016, the final license was issued. The highest interest rate issued is 9% of the fixed deposit of the tenure of 1-3 years. Senior citizens will receive addition .5% interest in all type of fixed deposits.
2. Ujjivan small finance bank
The ujjivan received the license from Reserve Bank of India in November last year. This bank provides an interest rate of 8% for those who deposit for the 1-2 year.
3. Airtel payment bank
It is run by the telecommunication company. It doesn’t come under the small finance banks but it also offers an interest rate of 7.25%. its fully digital and paperless banking system. You will also get free insurance for accident cases for Rs.1 Lakh
4. Fincare small finance bank
This bank was launched in June 2017. It has its registered office at Ahmadabad and sub-office at Bengaluru. This bank offers a rate of 7% interest for fixed deposits. The bank’s higher interest rate is 9% that allowed only for those who deposited money for 2-3 years.
5. Suryoday small finance bank
This bank provides an interest rate of 8.75% for 2-3 year deposits. For senior citizens can achieve an interest rate of 9% for 1-year deposits.
6. AU small finance bank
This bank provides an interest rate of 7.25% for 3-4 year deposits. It is much better than the private banks.