In the past months, almost all banks have drastically cut down their FD interest rates. Big banks are not giving more than 5-6% interest on FD. But there are some small banks which can offer you a much higher rate of interest. For example, Utkarsh Small Finance Bank is offering up to 7.5% interest rate on FD, which is much higher than big banks like SBI and ICICI Bank. You can get interested up to Rs 2 lakh by investing Rs 5 lakh in such banks. This will lead to an increase in investment from Rs 5 lakh to Rs 7 lakh. Here are some of the banks that are providing high-interest rates on FD. Also, the practical way on how you can make Rs 5 lakh to Rs 7 lakh investment.
Jan Small Finance Bank
Jan Finance Small Bank FDs ranging from 7 days to 10 years can be made. The bank offers interest rates on FDs between 2.5% and 7.25%. Senior citizens get 0.50 percent more in this bank. This implies, for senior citizens, the interest rate amounts to 3% to 7.75%. The bank is paying 6.00% on 181 days to 364 days, 6.75% on 365 days to 699 days, and 7.00% on 700 days. Senior citizens will get half a percent more interest in this bank for each period.
Suryoday Small Finance Bank
Suryoday Small Finance Bank offers interests ranging from 4.00% on 7 days to 14 days, 4.00% on 15 days to 45 days, 5.00% on 46 days to 90 days, 5.50% on 91 days to 6 months, 6 months 6.25 percent on 9 months, 6.50 percent on 1 year under 9 months, 6.75 percent on 1 year to 2 years, 7.15 percent on 2 years to 3 years, 7.25 percent on 3 years to 5 years, 7.50 on 5 years Percent and pays 5% interest on 5 to 10 years on FD’s. In this bank, senior citizens get interested from 4.50% to 8% on FD.
This will mount to Rs 7 lakhs for Rs 5 lakhs If you are a senior citizen and invest Rs 5 lakhs in Suryoday Small Finance Bank, then you will get an interest of Rs 40 thousand annually at an 8% interest rate. In this way, you will get an interest of Rs 2 lakh in 5 years. After 5 years your investment amount will exceed Rs 7 lakh.
Bajaj Finance Raises Interest Rates on FDs
Bajaj Finance has announced an increase in interest rates on FDs by 40 basis points (0.40 percent). Bajaj Finance will pay 7% interest on FDs which are three to five years in duration. Currently, 6.6 percent interest was being paid in this period. Senior citizens will be given 7.25 percent interest for this period.