Earn up to 8.5% interest rate on this bank’s FDs: Check details

Rate this post

Equitas Small Finance Bank offers 8 per cent interest for deposits maturing in 888 days. For senior citizens, the interest rate for deposits maturing in 888 days will go up to 8.5 per cent. The revised rates were applicable for deposits below Rs 2 lakh and are effective from December 14, 2022.
For fixed deposits maturing between seven days and 29 days, Equitas Small Finance Bank will offer an interest rate of 3.5 per cent. For deposits maturing between 30 days and 45 days, the interest rate will be 4 per cent. Fixed deposit holders will get an interest rate of 4.25 per cent for deposits maturing between 46 days and 90 days. For deposits maturing between 91 days and 180 days, the interest rate will be 5 per cent. The bank offers an interest rate of 6 per cent for fixed deposits maturing between 181 days and 364 days. The fixed deposits maturing between one year to 18 months, the interest rate will be 7.5 per cent. For deposits maturing between 18 months and one day between two years, the interest rate will be 7.25 per cent. Investors will get an interest rate of 7.75 per cent for deposits maturing between two years one day and 887 days. For fixed deposits maturing in 889 days to three years, the interest rate will 7.75 per cent. Equitas Small Finance Bank offers an interest rate of 7.25 per cent for deposits maturing between three years one day and four years. For deposits maturing between four years one day and five years, the interest rate will be 7 per cent.

Senior citizens will get 0.50 per cent extra interest rate on fixed deposits with the Equitas Small Finance Bank.

The bank has also revised the interest rate on the savings accounts. The new rates will be effective from December 14, 2022. For savings accounts with a closing balance of up to Rs 1 lakh, the interest rate will be 3.5 per cent. For savings accounts with a daily closing balance of above Rs 1 lakh and up to Rs 5 lakh, the bank will offer 5.25 per cent. Equitas Small Finance Bank offers an interest rate of 7 per cent for savings accounts with a closing balance of Rs 5 crore to up to Rs 30 crore.
“The interest payouts will continue to be quarterly across all account types,” the bank said.
Which FD tenure will be ideal for you now?
Banks have started increasing the interest rates of fixed deposits after the Reserve Bank of India had increased repo rates by 35 basis points on December 7, 2022.

“Interest rates in the last few months have increased to their highest in almost three to four years. While it is difficult to say that we have reached the peaks, current interest rates offered by various banks have now become attractive to park the funds in fixed deposits. This is especially true for senior citizens who like to park their funds in safe, simple and liquid investments,” said Ankit Jain, Partner, Ved Jain & Associates.

“Given the current outlook, a fixed deposit of up to two to four years is yielding the highest return and that would be the ideal tenor for maximising the return,” he added.

Owing to their business model, small finance banks cannot be kept on par with other scheduled commercial banks. Hence, FDs from small finance banks are also not comparable in terms of risk profile to full-service banks. However, when it comes to insurance, do keep in mind that deposits in small finance banks are also insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) to the tune of Rs 5 lakh. Most of the experts advise layman retail investors to keep their exposure limited in FDs of small finance banks so that it is well within DICGC cover of Rs 5 lakh including principal and interest.

Leave a Comment

Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

Please consider supporting us by disabling your ad blocker on our website