Bumper Offer! These 3 Small Finance Banks Offer Highest FD Interest — Find Out How Much You Earn on ₹2 Lakh in 5 Years!

As the Reserve Bank of India (RBI) has been gradually reducing repo rates, banks have followed suit by lowering loan interest rates — and along with them, the fixed deposit (FD) interest rates. Most major banks are now offering less than 7% interest on five-year deposits. However, small finance banks continue to provide higher returns, with rates going up to 8%. Traditional investors still prefer fixed deposits due to their stability and guaranteed returns, even though FD rates have fallen compared to last year when several banks offered higher interest through special deposit schemes.

Among the top-performing small finance banks, Suryoday Small Finance Bank offers the highest 5-year FD rate at 8.05% for deposits below ₹3 crore for individuals below 60 years of age. A ₹2 lakh deposit here earns ₹97,919 in interest, maturing at ₹2,97,919. Jana Small Finance Bank follows closely with an 8% rate, giving ₹97,189 interest for ₹2 lakh in five years, while Utkarsh Small Finance Bank offers 7.25%, resulting in ₹86,452 interest over the same period. These deposits are insured up to ₹5 lakh under the DICGC scheme, ensuring safety for investors. Senior citizens receive an additional 0.50% interest across most banks, making FDs an even better option for them.