Key Points
In short, FD interest rates of small finance banks such as Unity Small Finance Bank, Equitas Small Finance Bank, Suryodyay Small Finance Bank, Utkarsh Small Finance Bank, and Jana Small Finance Banks are higher than those offered by the public sector and private banks..
To reward depositors for the extra risk and make their FDs attractive to investors, small finance banks offer higher interest rates than private or public sector banks...
"Having cumulative deposits (including fixed deposits) of up to Rs 5 lakh with each of these small finance banks is as safe depositing money with PSU and large private sector banks," said Shetty...
With the same SFB you can go for multiple smaller FDs in different right and capacity such as joint account with spouse and children, as guardian of minor, as a director of a company and so on.. "Spread your fixed deposits across a few banks..
"Overall, investing in fixed deposits in small finance banks can be a viable investment option, provided you do your due diligence and make an informed decision," he added..
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