Fixed Deposits – 5 Banks With 8.5-9% Interest On Fixed Deposits – Comprehensive Guide

Fixed Deposits

In the realm of financial stability and prudent investment, fixed deposits (FDs) have long stood as pillars of reliability. Despite the tumultuous times brought about by the COVID-19 pandemic, the banking sector, under the vigilant eye of the Reserve Bank, has demonstrated resilience. Recent trends, particularly the upward trajectory of the repo rate, have ushered in a new era of increasing returns on bank deposits.

While larger commercial banks, including public sector entities, have been modest in adjusting their FD interest rates, a group of smaller banks has taken the lead. These nimble financial institutions have not only embraced change but have gone a step further by offering FD interest rates surpassing the 8% threshold. This essay navigates the landscape of high-interest fixed deposits, shedding light on five banks that have positioned themselves as frontrunners in providing returns ranging from 8.5% to 9%. Among them is a noteworthy bank in Kerala, bringing regional diversity into the spotlight.

Also Read…..Bank FD vs Company FD

Unity Small Finance Bank

One of the pioneers in the paradigm shift towards higher FD interest rates, Unity Small Finance Bank, has made significant strides in empowering depositors to reap higher returns. November witnessed two consecutive interest rate hikes, with FDs spanning 181 days to 501 days offering a lucrative 9% interest for senior citizens and 8.5% for the general category. The bank maintains a balanced approach, offering competitive rates across various tenors, from 7 days to 10 years. Unity Small Finance Bank’s commitment to enhancing returns for both senior citizens and the general category positions it as a key player in the evolving landscape of fixed deposits.

ESAF Small Finance Bank

Based in Thrissur, Kerala, ESAF Small Finance Bank has emerged as a financial institution of significance, not only for its regional presence but also for its commitment to offering attractive FD interest rates. With the latest rate hike announced on November 1, this bank presents a unique FD scheme with an enticing 8.5% interest for senior citizens on deposits with a tenure of 999 days. The general category is not left behind, enjoying a competitive 8% interest rate. ESAF Small Finance Bank’s strategic design of high-interest schemes positions it as a beacon for those seeking robust returns within the fixed deposit domain.

Ujjeevan Small Finance Bank

In the dynamic landscape of small finance banks, Ujjeevan Small Finance Bank has taken steps to align its FD interest rates with the evolving market dynamics. The announcement on November 5 showcased a commitment to offering compelling returns, with senior citizens enjoying a noteworthy 0.75% additional interest. The 8.75% interest rate for senior citizens on 80-week deposits (560 days) demonstrates a strategic move to cater to specific investor needs. Ujjeevan Small Finance Bank’s tiered interest rates, extending from 1 week to 120 months, showcase a nuanced approach to financial inclusivity, with additional benefits for senior citizens.

Fincare Small Finance Bank

Fincare Small Finance Bank, through its announcement on November 9, reaffirms its commitment to providing attractive returns on fixed deposits. With a focus on differentiation, the bank offers an additional 0.50% interest for senior citizens across various FD schemes. The 1,000 days FD deposit stands out as the highest yielding, presenting a noteworthy 8.50% return for senior citizen investors. Fincare Small Finance Bank’s emphasis on tiered interest rates and prioritizing senior citizens positions it as a player committed to delivering value in the competitive landscape of fixed deposits.

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank, having adjusted its FD interest rates on October 17, is another noteworthy player in the high-interest fixed deposit arena. A distinct feature is the additional 0.75% interest offered to senior citizens, making its FD schemes especially attractive for this demographic. With an 8.50% interest rate on senior citizen deposits for 700 days, Utkarsh Small Finance Bank strikes a balance by offering competitive rates to other categories as well. The bank’s approach to providing tiered interest rates across diverse tenors exemplifies its commitment to catering to a broad spectrum of investor preferences.


The current financial landscape, marked by rising repo rates and evolving investor preferences, has led to a paradigm shift in the fixed deposit domain. While larger banks are cautiously adjusting their rates, smaller banks are taking bold strides to offer attractive returns to depositors. The five banks highlighted in this essay, including a notable player in Kerala, exemplify this shift by offering FD interest rates ranging from 8.5% to 9%. As we navigate this terrain of high-interest fixed deposits, it becomes evident that these banks are not just competing on rates but are redefining the narrative of fixed deposits, making them not only reliable but also lucrative avenues for investors seeking stable returns.

(Above is based on currently available reports and rates on websites. Banks are authorized to revise rates without warnings. So check rates before borrowing.)

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