Last updated: February 18, 2023, 8:05 PM IST
The financial institutions known as small financial banks are those engaged in providing credit facilities to small business units, micro and small industries, small and marginal farmers and other unorganized sectors. They operate under a Small Finance Bank license obtained from the Reserve Bank of India.
Increasing access to financial services in rural and semi-urban areas is the primary goal of small finance institutions. These banks essentially have all the features of typical commercial banks, only on a much smaller size. The main focus remains on tier three cities, small towns and rural areas. Small financial banks have the potential to provide an alternative to some of the existing large financial institutions. To lure savers, small financial banks offer high interest rates of up to 9% on fixed deposits (FDs). Here are some top small financial banks you can invest in:
Suryoday Small Financial Bank
Suryoday Small Finance Bank offers 8.51% interest for common people and 8.76% for seniors on 999 days FD. The general public can borrow money from Suryoday Small Finance Bank at an interest rate of 4% to 6% for terms ranging from 7 days to 10 years. Seniors, on the other hand, can get interest rates from 4.50% to 6.50% for the same time. In addition, the bank sells FDs maturing from 2 years to 998 days to the general public at interest rates of 7.51% and 8.51%, and seniors at interest rates of 8.51% and 8.76% during the same period.
Unity Small Financial Bank
Unity Small Finance Bank has launched three unique fixed rate (FD) deposit programs, giving interest rates of 8.75% for the general public and 9.25% for seniors on FDs of 181-201 days. The bank offers interest rates of 8.75% and 9% for FDs with maturities of 501 days and 1,001 days for ordinary individuals, and 9.25% and 9.5% for senior citizens, respectively.
Jana Small Financial Bank
Seniors can get an interest rate of 8.80%, while regular customers can get an interest rate of 8.10% on FDs with maturities of two to three years.
Northeast Small Finance Bank
Seniors can get interest rates of 8.75% on FDs of 1,111 days from North East Small Finance Bank, while other clients can get interest rates of 8%.
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