RBI’s rate hike cycle that began in the initial days of FY23 did little to no impact on the banks’ credit demand as growth is at a comfortable double-digit rate of scheduled commercial banks. Credit demand is unlikely to budge, and that has likely led the lenders in the race of acquiring maximum deposits. Banks’ credit growth continues to outpace deposits, and hence it is expected that the traditional fixed deposit schemes may continue to see more hikes ahead. At present, small finance banks have been surpassing both public sector and private banks when it comes to offering attractive FD rates.
SFBs latest FD rates:
Let’s look at the FD rates of listed SFBs such as AU Small Finance Bank, Ujjivan Small Finance Bank, Equitas Small Finance Bank, and Suryoday Small Finance Bank.
Equitas SFB is the latest to hike interest rates on FDs with effect from April 11, 2023. The bank is offering 3.5% to 8.50% to the general category. To senior citizens, the bank gives an extra 0.5% and hence the highest rate for them is up to 9%.
Currently, AU SFB offers interest rates in the range of 3.75% to 8% to a general category on FDs below ₹2 crore. For senior citizens, the rates vary from a minimum of 4.25% to a maximum of 8.50%.
Meanwhile, Ujjivan SFB offers FD rates from 3.75% to 8.25% for the general category. To senior citizens, the bank offers 0.50% additional on the normal rates and hence the highest interest rate comes to around 8.75%.
Last month, Suryoday SFB revised its FD rates by a whopping 5 to 200 basis points. At present, this SFB is giving from 4% to 8.51% interest rate to the general category, while the elderlies can earn from 4.50% to 8.76%.