Synopsis: This article explores which among the most popular small finance banks, Suryoday Small Finance Bank, Jana Small Finance Bank, Equitas Small Finance Bank, AU Small Finance Bank, and Ujjivan Small Finance Bank, gives highest FD returns for 5 years tenure on ₹5 lakh principal amount.
Small finance banks typically offer higher FD rates than large private or public sector banks to attract deposits. On a ₹5 lakh, 5 year investment, the rate gap between banks can translate into a difference of approximately ₹50,000 at maturity.
The 5 Small Finance Banks- FD Rates for 5 Year Tenure
₹5 Lakh Invested for 5 Years
1. Suryoday Small Finance Bank
- General Citizens
- Interest rate: 7.90% p.a.
- Estimated Total corpus after 5 years: ₹7,39,340
- Extra interest generated (approx.): ₹2,39,340
- Senior Citizens
- Interest rate: 8.05% p.a.
- Estimated Total corpus after 5 years: ₹7,44,797
- Extra interest generated (approx.): ₹2,44,797
2. Jana Small Finance Bank
- General Citizens
- Interest rate: 7.77% p.a.
- Estimated Total corpus after 5 years: ₹7,34,642
- Extra interest generated (approx.): ₹2,34,642
- Senior Citizens
- Interest rate: 8.00% p.a.
- Estimated Total corpus after 5 years: ₹7,42,974
- Extra interest generated (approx.): ₹2,42,974
3. Ujjivan Small Finance Bank
- General Citizens
- Interest rate: 7.20% p.a.
- Estimated Total corpus after 5 years: ₹7,14,374
- Extra interest generated (approx.): ₹2,14,374
- Senior Citizens
- Interest rate: 7.70% p.a.
- Estimated Total corpus after 5 years: ₹7,32,124
- Extra interest generated (approx.): ₹2,32,124
Also read: Grama Suvidha Rural Postal Life Insurance Scheme: Check Eligibility, Benefits & How It Works
4. Equitas Small Finance Bank
- General Citizens
- Interest rate: 7.00% p.a.
- Estimated Total corpus after 5 years: ₹7,07,389
- Extra interest generated (approx.): ₹2,07,389
- Senior Citizens
- Interest rate: 7.50% p.a.
- Estimated Total corpus after 5 years: ₹7,24,974
- Extra interest generated (approx.): ₹2,24,974
5. AU Small Finance Bank
- General Citizens
- Interest rate: 6.75% p.a.
- Estimated Total corpus after 5 years: ₹6,98,749
- Extra interest generated (approx.): ₹1,98,749
- Senior Citizens
- Interest rate: 6.92% p.a.
- Estimated Total corpus after 5 years: ₹7,04,613
- Extra interest generated (approx.): ₹2,04,613
Highest to Lowest Returns- Combined Comparison Table
Note: Calculations done using Groww FD Calculator
Inference from the above Analysis
Suryoday Small Finance Bank delivers the highest 5 year returns on a ₹5 lakh FD among the banks compared, followed by Jana Small Finance Bank. Investors should verify current rates directly with the bank before booking, as SFB rates change frequently.
Risk related to Small Finance banks that should be noted
Small finance banks carry a different risk profile than large banks due to their smaller networks and greater reliance on retail deposits, though all are RBI regulated and DICGC insured up to ₹5 lakh per depositor per bank. Please note that this article is for informational purposes only and does not constitute financial advice.
