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Despite sliding interest rates, fixed deposits still constitute one of the most popular debt instruments in the country. Many consider it the safest instrument with guaranteed returns. According to personal finance experts, when you create an investment portfolio, you should allocate some part of your money to fixed deposits. FD interest rates of different banks vary by deposit amount, deposit tenure and type of depositor. Recently two top small finance banks revised interest rates on FD’s.

Latest FD rates

AU Small Finance Bank is offering fixed deposit schemes with a flexible tenure ranging from 7 days to 120 months. The bank’s new rates were applicable from August 25, 2021.

— 07 days to 1 month 15 days: 3.50%

— 01 month 16 day to 03 months: 4.00%

— 03 months 1 day to 06 months: 4.35%

— 06 months 1 day to 12 months: 4.85%

— 12 months 1 day to 15 months: 5.85%

— 15 months 1 day to 18 months: 5.75%

— 18 months 1 day to 24 months: 5.75%

— 24 months 1 day to 36 months: 6.00%

— 36 months 1 day to 45 months: 5.75%

— 45 months 1 day to 60 months: 5.75%

— 60 months 1 day to 120 months: 6.00%

These rates are applicable on deposits of less than Rs 2 crore. Senior citizens get 4.00% to 6.50% interest rates on FD’s tenure ranging from 7 days 120 months.

ESAF Small Finance Bank also revised fixed deposit interest rates. Now this bank offers minimum 4% to maximum 6.25% interest to the general public. These rates were effective from August 1, 2021.

— 07 days to 14 days: 4.00%

— 15 days to 59 days: 4.50%

— 60 days to 90 days: 5.25%

— 91 days to 181 days: 5.50%

— 182 days: 5.00%

— 183 days to 363 days: 6.00%

— 364 days: 5.25%

— 365 days & 366 days: 6.25%

— 367 days to 545 days: 6.00%

— 546 days: 5.00%

— 547 days to 727 days: 6.00%

— 728 days: 5.25%

— 729 days to 909 days: 6.00%

— 910 days: 5.25%

— 911 days to 1091 days: 6.00%

— 1,092 days: 5.25%

— 1,093 days to 1273 days: 5.75%

— 1,274 days: 5.25%

— 1,275 days to 1455 days: 5.75%

— 1,456 days: 5.25%

— 1,457 days to 1637 days: 5.75%

— 1,638 days: 5.25%

— 1,639 days to 1819 days: 5.75%

— 1,820 days: 5.25%

— 1,821 days to 3653 days: 5.25%

Also Read: FDs are evergreen! These 9 banks offer high interest rates

These rates, too, are for amounts below Rs 2 crore. Senior citizens will get 50 basis points or 0.50 percentage points additional interest than general public for all tenures.

Top commercial banks

On the other hand, large commercial banks are offering lower FD interest rates. State Bank of India (SBI), country’s largest commercial bank, offers interest ranging from 2.90% to 5.55% maturing between 7 days and 10 years to general customers.

On the other hand, the country’s largest private bank, HDFC Bank, offers interest ranging from 2.50% to 5.50% maturing between 7 days and 10 years to general customers. Senior citizens will get up to 75 bps extra interest rates ranging from 3% to 6.25% on FDs maturing in 7 days to 10 years.

Also Read: SBI vs HDFC Bank vs Axis Bank: Check latest rates

RBI has created the category of small finance banks in the last few years mainly to serve small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

The first small finance bank to get the license from RBI was Capital Small Finance Bank. It got the license in April 2016. A total of 10 small finance banks are now operating in the country.