Fixed deposit or FD interest rates of SBI or State Bank of India range from 5.75 per cent to 6.85 per cent.
Senior citizens get FD interest rate of 7.20% on deposits below Rs 1 crore for 1 year from SBI.
Fixed deposit (FD) interest rates paid by SBI or State Bank of India range from 5.75 per cent to 6.85 per cent. However, small finance banks such as Jana Small Finance Bank, Equitas Small Finance Bank and AU Small Finance Bank provide interest rates up to 9.1 per cent on FDs, much higher than their larger peers. Consider this: on amounts below Rs 1 crore, SBI offers an FD interest rate of 6.70 per cent to general citizens for one year. However, on the same amount and maturity period, Jana Small Finance Bank and Equitas Small Finance Bank pays an interest rate of 8 per cent each while AU Small Finance Bank pays 7 per cent to the general public.
Senior citizens with fixed deposit accounts in SBI earn an FD interest rate of 7.20 per cent on deposits below Rs 1 crore for one year. However, Jana Small Finance Bank pays 8.6 per cent, Equitas Small Finance Bank pays 8.5 per cent and AU Small Finance Bank offers 7.5 per cent on fixed deposits below Rs 1 crore for one year.
Most small finance banks have a niche customer base. Higher FD interest rates and doorstep banking helps them garner more customers.
Senior citizens will get an additional 0.6 per cent interest over and above the FD card rate, according to the bank's website - janabank.com.
An FD interest rate of 0.5 per cent extra is paid to senior citizens. However, it is not applicable to NRE/NRO deposits, said the bank.