FD Interest Rates: These 5 Banks Are Offering Sky-High Returns on FDs! How Much Interest Will You Earn on ₹5 Lakh?

If you have funds sitting in your account and are unsure where to invest them, the safest option is an FD—that is, a Fixed Deposit. This is because it offers a fixed rate of interest and carries virtually no risk of loss. Now, the question arises: which banks are currently offering the highest interest rates on FDs?

In this regard, Small Finance Banks recently released updated lists of the interest rates offered on their Fixed Deposits, detailing exactly how much interest they are paying out to customers. So, let's take a look at the 5 Small Finance Banks that are currently offering interest rates of 8% or higher on short-term deposits.

**Who is offering how much interest?**
Utkarsh Small Finance Bank and Suryoday Small Finance Bank are currently leading the pack, both offering an impressive interest rate of 8.10% on select tenures. Utkarsh Bank offers this rate on FDs with a tenure of 666 days, whereas at Suryoday Bank, one must invest for a period of 30 months to avail of the same rate.

Shivalik Small Finance Bank follows next, offering an interest rate of 7.80% on deposits with a tenure ranging from 21 months and 1 day to 22 months.

For long-term investors, Jana Small Finance Bank is offering a rate of 7.77% on FDs with a tenure of 3 to 5 years.

Meanwhile, keeping short-term investors in mind, Slice Small Finance Bank is offering an interest rate of 7.75% on deposits with a tenure of 18 months and 1 day.

**Let's understand this through a calculation:**
For instance, let's assume you open a Fixed Deposit of ₹5 lakh. If Utkarsh Small Finance Bank offers you an interest rate of 8.10% on this deposit, you would earn a total interest of ₹78,784 after 666 days. Consequently, the total value of your investment would amount to ₹5,78,784.

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