Small finance banks in India offer high FD rates

Several small finance banks in India are now offering fixed deposit (FD) rates above 9%. Unity Small Finance Bank leads with 9.1% for senior citizens, while North East Small Finance Bank offers 9% for FDs of 18 months. Unity Small Finance Bank recently updated its rates on March 11, 2025. General citizens can earn 8.6% for a 1001-day FD. Other banks, like Utkarsh and Suryoday, provide rates between 8% and 8.6% for various tenures. Equitas, AU, and Ujjivan also offer competitive rates, with most above 8%. These rates are higher than those from public and private banks, making small finance banks an attractive option for conservative investors.