Small finance banks dominate FD market with rates up to 8.25% for five-year terms

According to Paisabazaar.com, Suryoday Small Finance Bank tops the fixed-deposit market with an 8.25% return for a five-year commitment, and it also offers 8.50% for senior citizens. Other small finance institutions—including Equitas, ESAF, Jana and Shivalik—provide rates up to 8% on certain periods. Private banks such as DCB, Bandhan and RBL, as well as public sector banks like Bank of India and Bank of Baroda, present maximum rates below the 8% mark, while foreign banks such as Deutsche Bank, Standard Chartered and HSBC offer even lower yields.

Saurabh Jain of Stable Money notes that while small finance banks currently deliver the best returns, investors should weigh tenure, bank choice and liquidity, diversify across institutions, and be aware of premature withdrawal penalties and tax implications. Deposit insurance from DICGC covers up to Rs 5 lakh per depositor per bank.