Small finance bank FD rates
Small finance banks often offer the highest fixed deposit rates in India, up to 8.10% at Suryoday Small Finance Bank. Here is how they compare. Rates updated 15 Jul 2026.
Before you chase the highest rate
Small finance banks are RBI-licensed and their deposits are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest combined. That is real protection, but only up to ₹5 lakh at any one bank. A sensible approach is to keep each bank's exposure within the insured limit and spread larger amounts across banks. We are an independent comparison site, not an advisor. This is not investment advice.
| Bank | Highest | 1 yr | 3 yr | 5 yr | Senior |
|---|---|---|---|---|---|
| Suryoday Small Finance Bank | 8.10% | 7.25% | 7.25% | 7.90% | 8.10% |
| Utkarsh Small Finance Bank | 8.10% | 6.00% | 7.50% | 7.00% | 7.50% |
| Equitas Small Finance Bank | 8.00% | 7.10% | 7.10% | 7.00% | 8.50% |
| Jana Small Finance Bank | 8.00% | 7.00% | 8.00% | 7.77% | 8.00% |
| Shivalik Small Finance Bank | 8.00% | 6.00% | 7.50% | 6.25% | 8.50% |
| Ujjivan Small Finance Bank | 7.80% | 7.25% | 7.25% | 7.20% | 7.70% |
| ESAF Small Finance Bank | 7.75% | 6.00% | 6.00% | 5.75% | 8.25% |
| Unity Small Finance Bank | 7.50% | 7.50% | 6.75% | 6.75% | 8.00% |
| AU Small Finance Bank | 7.40% | 6.35% | 7.40% | 6.75% | 7.25% |
| Capital Small Finance Bank | 7.15% | 7.00% | 7.00% | 6.90% | 7.65% |
| Capital Small Finance Bank Limited | NA | NA | NA | NA | 7.30% |
| Shivalik Small Finance Bank Limited | NA | NA | NA | NA | 6.75% |
Frequently asked questions
Why do small finance banks offer higher FD rates?
Small finance banks are a newer category of RBI-licensed banks focused on underserved segments. To attract deposits and grow, they often price fixed deposits above large public and private banks. That is why they frequently top the rate tables.
Are small finance bank FDs safe?
They are licensed and regulated by the RBI, and deposits are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest combined. If you deposit more than ₹5 lakh at one bank, only ₹5 lakh is insured. A common approach is to keep each bank exposure within the insured limit. This is not investment advice.
What is DICGC deposit insurance?
DICGC, a subsidiary of the RBI, insures bank deposits up to ₹5 lakh per depositor per bank across savings, current, recurring and fixed deposits combined. The cover is automatic and applies to scheduled commercial banks including small finance banks.
Is small finance bank FD interest taxable?
Yes, the same as any bank FD. Interest is taxed at your income slab and TDS may apply above the annual threshold. Rates shown are before tax.