Small Finance Banks Offer Up to 8% FD Interest, Outpacing Large Banks

• Small Finance Banks are offering Fixed Deposit (FD) interest rates up to 8%, significantly higher than large public and private banks.
• Suryoday Small Finance Bank and Shivalik Small Finance Bank lead with 8% interest; Shivalik offers this for a shorter 1 year 10 month tenure.
• Other banks like Jana Small Finance Bank (7.77% for 3 years) and Utkarsh Small Finance Bank (up to 8% for senior citizens) also offer competitive rates.
• Deposits up to Rs 5 lakh per depositor are insured by DICGC, providing security for investors.
• FD interest is taxable, but forms 15G/15H can be submitted for exemption, and senior citizens get deductions under Section 80TTB.

Why It Matters: Small Finance Banks provide attractive, secure FD rates up to 8%, offering a strong alternative for conservative investors.