Synopsis: Small Finance Banks (SFBs) are now providing one of the best returns available in the banking sector for the investors. Here is an informative comparison of RD rates announced by leading SFBs.
Recurring Deposit (RD) is still one of the most popular ways for saving money, especially for people who are risk-averse and require guaranteed returns through monthly investment plans. RDs do not involve any fluctuations like in the case of other market-based instruments and provide fixed interest for the whole tenure, which makes it perfect for salaried persons and long-term investors. In recent times, Small Finance Banks have started gaining momentum because of providing relatively higher interest rates than general banks.
Top 5 Small Finance Bank RD Interest Rates
1. Suryoday Small Finance Bank
The Suryoday Small Finance Bank provides among the higher RD interest rates in the category, with a maximum of 8.10% interest rate for 30 months. The optimal time period for Suryoday Small Finance Bank can be considered 18 to 36 months.
2. Jana Small Finance Bank
Jana Small Finance Bank offers an excellent RD scheme with the rate of interest offered at 7.77% for tenures between 36 and 60 months. Retirement accounts for senior citizens get the interest rate of up to 8.00%, which makes it among the best schemes offered.
3. Ujjivan Small Finance Bank
The Ujjivan SFB provides the maximum RD interest rate of 7.45% for two years, which makes it ideal for those who wish to save money for a medium period. An extra feature available to senior citizens is that they get 7.95%.
4. AU Small Finance Bank
The AU Small Finance Bank provides an interest rate of 7.25% for RD for 31 to 36 months. Despite offering interest rates that are a bit lower compared to other small-scale SFBs, AU Small Finance Bank is renowned for its reliability and widespread network coverage in the banking industry.
5. Utkarsh Small Finance Bank
Utkarsh has RD rates that are competitive, with their best offering being 7.25% per annum for a period of 21-30 months. They are suitable for senior citizens with the maximum return of up to 7.75%.
Note: Interest rates are effective as per the latest rate cards published by the respective banks and are subject to change at the discretion of the banks.
Things to consider before Investing
- Withdrawal of the money before its due date might lead to penalty fees along with a lower total return.
- RD interest rates are reviewed regularly by banks
- The interest earned out of RD investments attracts TDS under income tax laws.
- Selecting the appropriate tenure for investment becomes crucial because the interest rate differs considerably for various RD tenures.
Key Takeaways
- Suryoday Small Finance Bank offers the highest RD rate among the banks compared, with 8.10% for regular customers and 8.25% for senior citizens.
- Jana Small Finance Bank ranks second, offering up to 7.77% for regular customers and 8.00% for senior citizens, especially on longer tenures.
- Ujjivan Small Finance Bank provides strong medium-term returns with a peak rate of 7.45% for 24 months.
- AU Small Finance Bank and Utkarsh Small Finance Bank offer similar peak RD rates of 7.25% for regular customers and 7.75% for senior citizens.
- Overall, Small Finance Banks continue to offer higher RD returns compared to most traditional banks in 2026.
Written By Ameet S
