Currently nationalized banks like SBI and other banks offer interest rates as low as 3.5%, and in case of Fixed Deposits (of up to one year) rises to 6.25%. However good news is that there is some small finance banks offering up to 7% of interest rates. These include Utkarsh, ESAF and Fincare.
Utkarsh Small Finance Bank
This small bank offers interest rate of 6% PA and for the Fixed Deposits it is 8%. However bank pays 8.5% of interest rate for senior citizens.
ESAF Small Finance Bank
In case of savings bank account, this bank offers interest rate of 7% in case of deposit amount is more than 10 lakhs, with deposit amount between 1 Lakh and 10 Lakh, it offers interest rate of 6.5%, and deposit amount less than Rs. 1 lakh, bank pays interest rate of 4%.
For the Fixed Deposits, if the deposit period is more than 80 days and up to 1 year, bank pays interest rate of 7.5%, however for senior citizens it pays 8%. If the Fixed deposit period is more than 1 year and less than 2 years, bank pays interest rate of 9%, and for the senior citizens for the same period, bank pays interest rate of 9.5%.
Fincare Small Finance Bank
For the Savings bank account, bank pays interest rate of 6% if the deposit amount is less than Rs. 1 lakh, however for the deposit amount of more than Rs. 1 lakh, bank pays interest rate of 7%.
For the Fixed Deposits, for the period of one year, bank pays interest rate of 8% and for the same period bank pays 8.5% interest rate to the senior citizens. However for the fixed deposits for the period of 2 years, bank pays interest rate of 9% which is very high compared to the interest rates offered by the public sector banks.