However, two small finance banks are currently offering the highest FD rates in the country.
Fixed deposits (FDs) with terms between 181 and 201 days will earn 8.75 per cent of the income from Unity Small Finance Bank.
Unity Small Finance Bank has revised its interest rates for senior citizens to 9.50% with a tenure of 1001 days. For the same term, a normal customer would receive a rate of 9%. Unity Bank will now pay 4.50% interest on FDs that are 7 to 14 days old. Apart from this, Unity Bank is offering 4.75% interest on FDs with terms between 15 to 45 days. On fixed accounts with a maturity period of 46 to 60 days, Unity Bank offers 5.25 per cent interest. The bank has said that it will pay 5.50 per cent interest on FDs with terms of 61 to 90 days.
Fixed deposits (FDs) with terms between 181 and 201 days will earn 8.75 per cent yield from Unity Small Finance Bank. The bank increased the interest rate on fixed rate loans (FDs) to 7.65 per cent for maturity periods ranging from 1002 days to 5 years. On FDs of 181-201 days and 501 days tenure, Unity Bank is offering 9.25 per cent interest to senior citizens and 8.75 per cent interest to regular customers. The small finance bank has announced an interest rate of 7.50 per cent for senior citizens and 7 per cent for general customers for fixed rate loans with a tenure of five to ten years.
Since the Monetary Policy Committee (MPC) raised the repo rate by 25 basis points to 6.5 per cent in February on the instructions of RBI Governor Shaktikanta Das. The repo rate has been increased by a total of six times or 250 basis points. In response to the increase in the repo rate, almost all banks have announced a hike in interest rates on Fixed Deposits (FDs). As inflation moved above the central bank’s tolerance level of 6 per cent for ten months in 2022, the RBI was forced to hike its benchmark rate by 250 basis points to 6.50 per cent for six hikes starting May 2022. Had to happen
However, two small finance banks are currently offering the highest FD rates in the country. Utkarsh Small Finance Bank (SFB) is currently offering deposits with a maximum interest rate of 8.25% for general public and 9.00% for senior citizens with a tenure of 700 days. Unity Small Finance Bank offers a maximum interest rate of 9.00% for general public and 9.50% for senior citizens for a tenure of 1001 days, which is particularly competitive.
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