Small finance banks are offering attractive fixed deposit rates that can generate significant monthly income on substantial deposits. According to reports from Mint, a ₹1 crore FD in these banks can generate an estimated monthly income of ₹60,000 to ₹69,000, depending on the bank, tenure, and applicable interest rate. The monthly payout from a non-cumulative FD is calculated as Monthly income = (Principal × Annual interest rate) ÷ (12 × 100).
As reported by Mint, the most competitive rates for general citizens are offered by Suryoday Small Finance Bank and Utkarsh Small Finance Bank at 8.10% for tenures of 30 months. Equitas Small Finance Bank follows with 7.40% for 888 days, while ESAF Small Finance Bank offers 7.75% for 2 years to less than 3 years. Jana Small Finance Bank provides 7.77% for above 3 years to 5 years, and Shivalik Small Finance Bank offers 7.80% for 21 months 1 day to 22 months. Slice Small Finance Bank and Ujjivan Small Finance Bank provide 7.75% for 18 months 1 day to 18 months 2 days and 2 years respectively.
According to Mint reports, senior citizens can access even higher FD rates, with Shivalik Small Finance Bank offering the highest rate of 8.30% for 21 months 1 day to 22 months. Suryoday Small Finance Bank and Utkarsh Small Finance Bank provide 8.25% for 30 months and 666 days respectively. Equitas Small Finance Bank offers 8.00% for 888 days, while ESAF Small Finance Bank provides 8.25% for 2 years to less than 3 years. Jana Small Finance Bank offers 8.00% for above 1 year to 3 years, and Ujjivan Small Finance Bank provides 7.95% for 2 years.
As reported by Mint, the monthly income potential varies significantly based on the bank and investor category. For general citizens, Suryoday Small Finance Bank and Utkarsh Small Finance Bank offer the highest monthly income of ₹67,500 at 8.10% interest rate. Equitas Small Finance Bank provides ₹61,667 at 7.40%, while ESAF Small Finance Bank offers ₹64,583 at 7.75%. For senior citizens, Shivalik Small Finance Bank leads with ₹69,167 monthly income at 8.30%, followed by Suryoday Small Finance Bank and Utkarsh Small Finance Bank at ₹68,750 each. Equitas Small Finance Bank offers ₹66,667 at 8.00% for senior citizens.
According to Mint reports, senior citizens generally receive an additional 0.25% to 0.50% interest over regular depositors. However, investors should remember that FD interest is taxable as per their income tax slab, and deposits are insured up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) norms. The article emphasizes that investment decisions should not be made solely on interest rates, but should consider factors such as diversification, liquidity needs, inflation effectiveness, tax implications, and bank safety before making any investment decisions.
