The North East Small Finance Bank (NESFB) has announced the launch of enhanced fixed deposit (FD) schemes. The bank now offers FD rates of up to 8.50% for the general public and 9.25% for senior citizens, according to a press release issued by North East Small Finance Bank.
FD interest rate up to 9.25%: These banks have revised fixed deposit rates in March 2024
According to the NESFB press release dated March 18, 2024, “NESFB’s latest FD rates reinforce the bank’s pledge to foster financial security and prosperity, aligning with the bank’s mission to empower its customers, especially the senior citizens within the Northeast community. For senior citizens, Fixed Deposits (FDs) offer a reliable means of generating earnings. FDs are designed to act as a steady source of income for the elderly, akin to a pension. The interest generated from these deposits can provide a regular income stream, supporting senior citizens in their retirement years.”
New NESFB FD plans
| Tenure | Regular Citizen upto INR 5 Cr | Senior Citizen |
| 366 – 1095 Days | 7.75 | 8.5 |
| 400 days- Special Scheme | 8.4 | 9.15 |
| 555 days- Special Scheme | 8.5 | 9.25 |
| 1111 Days- Special Scheme | 8.5 | 9.25 |
NESFB FD interest rates
The bank offers interest rate between 3.25% to 8.50% for general citizens for tenure ranging from 7 days to 10 years. For senior citizens, the interest rate vary between 4% to 9.25%. The highest interest rate of 8.50% and 9.25% for senior citizens is offered on tenure of 1111 Days- Special Scheme.
| Tenure | Card Rates upto 2 Crores | Senior Citizen |
| 7 – 14 Days | 3.25 | 4 |
| 15 – 29 Days | 3.75 | 4.5 |
| 30 – 45 Days | 4.25 | 5 |
| 46 – 90 Days | 4.75 | 5.5 |
| 91 – 180 Days | 6.25 | 7 |
| 181 – 365 Days | 7 | 7.75 |
| 366 – 1095 Days | 7.75 | 8.5 |
| 400 days- Special Scheme | 8.4 | 9.15 |
| 555 days- Special Scheme | 8.5 | 9.25 |
| 1111 Days- Special Scheme | 8.5 | 9.25 |
| 1096 – 1825 Days | 8 | 8.75 |
| 1826 – 3650 Days | 6.25 | 7 |
Other small finance banks offering higher interest rates
Shivalik Small Finance Bank
Shivalik Small Finance Bank offers an interest rate between 3.50% to 8.70% for general citizens. For senior citizens, interest rate vary between 4% to 9.20%. The highest interest rate of 8.70 % and 9.20% for senior citizens is offered on tenure of 24 months 1 day to 36 months. The rates are effective from March 2, 2024.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank offers interest rate between 3.75% to 8.50% for general citizens. The highest interest rate of 8.50% on tenure of 15 months and highest interest rate of 9% for senior citizens on same tenure. The rates are effective from March 7, 2024.
Suryoday Small Finance Bank
Suryoday Small Finance Bank offers interest rates between 4% to 9.01% for general citizens. For senior citizens, interest rates vary between 4.40% to 9.25%. The highest interest rate of 9.01 % and 9.25% for senior citizens is offered on tenure of 2 Years and 1 Month (25 months). The rates are effective from March 1, 2024.
(Owing to their business model, small finance banks cannot be kept on par with other scheduled commercial banks. Hence FDs from small finance banks are also not comparable in terms of risk profile to full-service banks. However, when it comes to insurance, do keep in mind that deposits in small finance banks are also insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) to the tune of Rs 5 lakh. Most of the experts advise layman retail investors to keep their exposure limited in FDs of small finance banks so that it is well within DICGC cover of Rs 5 lakh including principal and interest.)
