Small Finance Banks Pay Up To 9.5% Interest On Fixed Deposit: Maturity Period, Deposit Limit And Other Details

Small Finance Banks Pay Up To 9.5% Interest On Fixed Deposit: Maturity Period, Deposit Limit And Other Details

FD interest rate: Small finance banks pay an annual return of up to 9.5% on deposits below Rs. 1 crore

Small finance banks – which are banks aimed primarily at financial inclusion – pay interest rates in a range of 3.5-9.5 per cent on FDs or fixed deposits of up to Rs. 1 crore. These lenders, such as Equitas Small Finance Bank, AU Small Finance Bank, Suryoday Bank, Jana Small Finance Bank, Fincare Small Finance Bank, ESAF Small Finance Bank and Utkarsh Small Finance Bank, provide a variety of maturity periods, from as short as seven days to as long as 10 years. In contrast to market-linked instruments such as equity or mutual funds, FDs provide a fixed return over a pre-defined maturity period, known as term or lock-in. Financial planners often suggest fixed deposit for investors with a low risk appetite.

Here’s a comparison of interest rates paid by these small finance banks on fixed deposits of up to Rs. 1 crore:

Equitas Small Finance Bank

Maturity period (term) Interest rate with effect from July 5, 2018
7 – 14 days 5.00%
15 – 29 days 5.50%
30 – 45 days 6.00%
46 – 62 days 6.25%
63 – 90 days 6.25%
91 – 120 days 6.50%
121 – 180 days 6.50%
181 – 210 days 6.75%
211 – 270 days 6.75%
271 – 364 days 7.50%
1 year to 18 months 8.00%
18 months 1 day to 2 years 7.75%
2 years 1 day to 3 years 7.75%
3 years 1 day to 4 years 7.00%
4 years 1 day to 5 years 7.00%
5 years 1 day to 10 years 7.00%

AU Small Finance Bank

Maturity period (term) Interest rate with effect from October 10, 2018
General Senior citizen
7 Days to 1 Month 15 Days 5.50% 6.00%
1 Month 16 Days to 3 Months 6.75% 7.25%
3 Months 1 Day to 6 Months 6.90% 7.40%
6 Months 1 Day  to 13 Months 7.00% 7.50%
13 Months 1 Day to 18 Months 8.25% 8.75%
18 Months 1 Day to 24 Months 8.50% 9.00%
24 Months 1 Day to 36 Months 7.75% 8.25%
36 Months 1 Day to 45 Months 7.75% 8.25%
45 Months 1 Day to 60 Months 8.00% 8.50%
60 Months 1 Day to 120 Months 7.25% 7.75%

Suryoday Bank

Maturity period (term) Interest rate with effect from September 29, 2018
General Senior citizen
7 days to 14 days 4.00% 4.50%
15 days to 45 days 4.00% 4.50%
46 days to 90 days 5.00% 5.50%
91 days to 180 days 5.50% 6.00%
181 days to 240 days 7.50% 8.00%
241 days to less than 1 Year 7.75% 8.25%
1 Year to 2 Years 8.50% 9.00%
Above 2 Years to 3 Years 8.75% 9.25%
950 Days* 9.00% 9.50%
Above 3 Years to less than 5 Years 8.00% 8.50%
5 Years 8.25% 8.75%
Above 5 Years to 10 Years 7.25% 7.75%

Jana Small Finance Bank

Maturity period (term) Interest rate with effect from October 17, 2018
7 days to 45 days 6.00%
46 days to 60 days 6.50%
61 days to 180 days 7.00%
181 days to 365 days 8.00%
More than 1 year up to 2 years 8.25%
More than 2 years up to 3 years 8.50%
More than 3 years up to 5 years 8.00%
More than 5 years up to 10 years 7.00%

Fincare Small Finance Bank

Maturity period (term) Interest rate
General Senior citizen
7 days to 45 days 4.00% 4.50%
46 days to 90 days 4.00% 4.50%
91 days to 180 days 6.00% 6.50%
181 days to 364 days 7.00% 7.50%
12 months to 15 months 8.00% 8.50%
15 months 1 day to 18 months 8.25% 8.75%
18 months 1 day to 21 months 8.50% 9.00%
21 months 1 day to 24 months 8.75% 9.25%
24 months 1 day to 36 months 9.00% 9.50%
3 years 1 day to 5 years 8.00% 8.50%
5 years 1 day to 7 years 7% 7.50%

ESAF Small Finance Bank

Maturity period (term) Interest rate with effect from April 1, 2018
General Senior citizen
7 – 14 days 5.75% 6.25%
15 – 59 days 5.75% 6.25%
60 – 90 days 6.50% 7.00%
91 – 179 days 6.75% 7.25%
180 – 363 days 7.50% 8.00%
364 days 5.60% 6.10%
365 – 727 days 8.75% 9.25%
728 days 6.80% 7.30%
729 – 1091 days 8.00% 8.50%
1092 days 5.66% 6.16%
1093 – 1819 days 7.00% 7.50%
1820 days 5.65% 6.15%
1821 – 3652 days 7.00% 7.50%

Utkarsh Small Finance Bank

Maturity period (term) Interest rate with effect from September 27, 2018
General Senior citizen
7 Days to 15 days 3.50% 4.00%
16 Days to 28 Days 3.50% 4.00%
29 Days to 45 Days 4.00% 4.50%
46 Days to 90 Days 4.50% 5.00%
91 Days to 120 Days 5.00% 5.50%
121 Days to 179 Days 5.50% 6.00%
180 Days to 210 Days 6.00% 6.50%
211 Days to 270 Days 7.00% 7.50%
271 Days to less than 1 Year 7.50% 8.00%
1 Year to 455 Days 8.50% 9.00%
456 Days to less than 2 years 9.00% 9.50%
2 Years to less than 3 Years 7.85% 8.35%
3 Years to less than 5 Years 7.00% 7.50%
5 Years 8.00% 8.50%
More than 5 Years to 10 Years 7.00% 7.50%

Across many maturities, small finance banks pay higher interest rates on FDs compared to their larger counterparts.


El-Erian on global market sell-off: ‘I don’t think the party is over’

Mohamed El-Erian

A recent global stock market sell-off won’t be enough to persuade the U.S. central bank to stop raising interest rates, noted economist Mohamed El-Erian told CNBC on Friday.

It comes as financial markets have been hit hard by a range of worries in recent weeks, including the U.S.-China trade war, a rout in emerging market currencies, rising borrowing costs and bond yields and economic concerns in Italy.

“I don’t think the party is over. I think what we are seeing is a transition in regimes,” El-Erian, chief economic advisor at Allianz, told CNBC’s Hadley Gamble in Paris on Friday.

“One from where markets were comforted by ample, predictable liquidity to now having to recognize that divergent fundamentals are going to be the driver of asset prices.”

Not ‘a single soothing word’

The Federal Reserve has already hiked rates three times this year, and investors have priced in a fourth hike in December.

Earlier this month, Fed Chair Jerome Powell said rates are a long way from so-called neutral, a level neither accommodative nor restrictive to the economy.

Since beginning his four-year term at the Fed in February, Powell’s tenure has been marred by disapproving comments from President Donald Trump.

At the start of the month, Trump called the Fed’s plan to continue hiking interest rates “crazy” after the S&P and the Dow marked their worst losses in eight months. Global markets have since whipsawed in recent weeks, amid lingering worries the Fed could soon pick up the pace of its planned interest rate hikes.

Nonetheless, El-Erian said it was “not surprising” to see a recent spike in market volatility. That’s because the Fed has been “very insistent” with its plan to raise interest rates this year and next — without saying “a single soothing word” during the recent bout of selling.

Liquidity risk

When asked which market indicators were keeping him worried, El-Erian replied: “I think that this divergence theme is a really important one.”

“We see interest rate differentials between Germany and the U.S. stretched to high levels (and) we are going to see more pressure on the FX markets. Of course, the best way of dealing with it is for Europe to get its act together on policies and pick up.”

On Thursday, the European Central Bank (ECB) kept its policy unchanged, staying on course to hike interest rates sometime after next summer. The ECB also confirmed its plan to end monetary easing by the end of 2018 remained on track.

“The second issue that I think that is important is underestimated liquidity risk … Liquidity risk is back and investors need to pay attention to that.”[“source=cnbc”]

Facebook takes down 82 more pages tied to Iran that were posting politically charged memes

Facebook CEO, Mark Zuckerberg

Matt McClain | The Washington Post | Getty Images
Facebook CEO, Mark Zuckerberg

Facebook said Friday it has taken down 82 more pages and accounts with ties to Iran that were posting politically charged memes.

A combined 1 million users followed at least one of the accounts, which were live on both Facebook and Instagram. The accounts formed Facebook groups and hosted Facebook events — consistent with the online activity of previously detected fake accounts.

The most recently removed accounts were first detected late last week and spent less than $100 on two advertisements across the two platforms. The first ad ran in January 2016 and the second ran in January 2018, Facebook said.

Though some of the accounts were live as early as 2016, they were most active in the past year, Facebook’s head of cybersecurity policy Nathaniel Gleicher said on a call with media.

It’s the latest in a series of updates from Facebook on continued misinformation efforts taking place on the platform. The company previously identified Russia and Iran as the source of potential state-sponsored campaigns.

In August, Facebook — along with other social sites like Twitter and Google — said it had removed more than 600 pages and accounts from Russia and Iran that it found to be engaging in what it called “inauthentic behavior.”

The company found some overlap and links between the accounts removed in August and the accounts removed on Friday, Gleicher said.

Facebook is boosting its detection efforts and take-down rates in light of foreign efforts to stir up social debate around the 2016 presidential election and the upcoming midterm elections in November.

But the company’s been relatively limited in the information it’s shared about the actors or action, declining to assign motivation or provide details like how many people indicated they would attend one of the Facebook events hosted by the accounts, for example.

Here are some of the posts made by the most recently removed accounts, as provided by Facebook:


US crude tumbles 12% from high as oil bulls retreat

Oil pump oil rig energy industrial machine for petroleum.

Oil pump oil rig energy industrial machine for petroleum.

Crude oil futures posted their third consecutive weekly loss on Friday as the bulls that pushed oil prices to nearly four-year highs head into retreat.

U.S. West Texas Intermediate crude ended this week down 2.2 percent and has now tumbled about 12 percent from its recent high of $86.74 on Oct. 3. Brent crude, the international benchmark for oil prices, fell 2.7 percent this week and is down 10.5 percent from its Oct. 3 high of $86.74.

Crude futures have gotten swept up in a wider stock market rout this month, with most of the losses for oil coinciding with a sell-off in equities. But the narrative driving oil prices has also flipped in recent weeks, and traders are closing out bullish bets on the commodity.

At the start of October, oil prices were rising on signs that U.S. sanctions are shrinking Iran’s crude exports faster than anticipated, potentially leaving the world with a shortage of oil. The sanctions are expected to cut crude exports from Iran, OPEC’s third-biggest oil producer, by about 1 million barrels per day.


Avanti Finance appoints CEO; operations to start next year

Avanti Finance, founded by corporate bigwigs like Ratan Tata and Nandan Nilekani, on Thursday announced appointment of Rahul Gupta as its Chief Executive Officer.

The company targets to begin full-scale operations in the first half of 2019, with a goal to serve 100 million households in the next five years, the company said in a statement.

The other founder members include reputed economist Vijay Kelkar and Managing Trustee of the Sir Dorabji Tata Trust R Venkataramanan.

Avanti has been conceived as a financial inclusion model with a mission to provide timely, affordable credit to the unserved and under-served segments leveraging new age digital technologies, it said.

  • “The funding for Avanti has come from the personal philanthropic capital of Tata and Nilekani, and their returns will be redeployed into philanthropy. Avanti’s objective carries forward the goals of the Tata Trusts in striving for socio-economic development in the hinterlands of the country for the last 126 years,” it said.

The Avanti platform leverages India’s digital infrastructure, and will partner with social sector players and community organisations and it has begun pilots in Bihar, Uttar Pradesh and Uttarakhand.

Prior to joining, Gupta was with GE Money as managing director for the full suite of its businesses for the 10 countries of the ASEAN region.

Commenting on the appointment, Ratan N Tata said, “Rahul possesses the experience of leading consumer finance both in India and developed countries.