Highest FD charges: Despite 1% RBI rate lower, get up to 9% interest rate on fixed deposits – check list

Despite a 100 foundation level lower within the Reserve Bank of India’s repo rate since February 2025, some small finance banks are nonetheless providing enticing fixed deposit (FD) charges above 8% for common depositors on deposits beneath Rs 3 crore. While most banks have lowered interest charges consistent with the coverage easing, traders searching for increased returns can nonetheless lock in beneficial charges earlier than additional reductions.Slice Small Finance Bank (previously North East Small Finance Bank) is presently providing the very best FD interest rate of 9% for common residents on tenures starting from 18 months 1 day to 18 months 2 days, in accordance to an ET report.Unity Small Finance Bank gives the following greatest rate of 8.60% for a tenure of 1001 days.Suryoday Small Finance Bank is providing 8.40% interest for common depositors for tenures above 30 months up to 3 years.Utkarsh Small Finance Bank is providing a peak rate of 8.25% for deposit tenures starting from 2 years (730 days) up to 3 years (1095 days).Jana Small Finance Bank gives an 8.20% return on a 5-yr (1825 days) fixed deposit.Here’s a snapshot of present prime FD charges for common residents from small finance banks (as of June 18, 2025):

Source: Paisabazaar.com , as cited the ET reportCommercial banks and small finance banks (SFBs) are each regulated by the Reserve Bank of India (RBI), however they differ considerably by way of their operational fashions and goal buyer base.Commercial banks are giant monetary establishments that cater to the final inhabitants and provide a variety of companies, together with all varieties of mortgage merchandise. In distinction, small finance banks primarily focus on offering primary mortgage amenities reminiscent of private loans, gold loans, MSME loans, and automobile loans. Their main goal clients embrace small debtors, micro-entrepreneurs, and the casual sector, notably in underserved areas.Both varieties of banks provide remittance companies and supply entry to digital banking platforms. However, the capital requirement for setting up a business financial institution is considerably increased in contrast to a small finance financial institution, which requires a minimal capital of Rs 100 crore.Banking analysts advise traders to train prudence while contemplating investments in small finance banks, noting their elevated threat profiles in contrast to conventional business banks. While the Deposit Insurance and Credit Guarantee Corporation (DICGC) gives insurance coverage protection of up to Rs 5 lakh for all deposits, these establishments function with distinct enterprise frameworks in contrast to scheduled business banks, which might topic depositors to elevated threat publicity, as reported by ET.