According to MSN, if you’re looking to earn an above 8% return on your fixed deposits (FDs), you should consider exploring the options offered by small finance banks. These banks, which were established after 2014, have been aggressively expanding their presence in the Indian banking landscape. They are offering competitive interest rates to attract depositors and create a liquidity pool to support their lending activities.
As of March 2023, small finance banks such as Equitas SFB, AU Small Finance Bank, and Ujjivan Small Finance Bank are offering FD interest rates ranging from 8.15% to 9.50% per annum. In comparison, traditional banks such as ICICI Bank and HDFC Bank are offering rates between 5.75% and 7.50% per annum.
Small finance banks are not only offering higher interest rates but also have more relaxed eligibility criteria and a simplified application process. They also provide easy access to depositors’ funds through their extensive branch and ATM networks. By considering the FD options offered by small finance banks, you can potentially earn a higher return on your deposit while still maintaining the security and liquidity associated with fixed deposits.
Source: https://www.msn.com/en-sg