FD rates up to 8.10%: Top small finance banks offer high returns

During periods of crisis, high-risk assets such as equities and bitcoin tend to lose appeal, while traditional safe havens like gold and silver may also fail to attract investors. In such conditions, investors increasingly look for avenues that can deliver stable, inflation-beating returns, bringing bank fixed deposits back into focus.

Since tensions escalated between the US and Iran, investor sentiment has shifted towards safety, with many turning to fixed deposits for assured returns and capital protection at a time when market-linked assets remain volatile.

Small finance banks are currently offering some of the most attractive rates in India. Suryoday Small Finance BankStrong FD rates up to 8.10% keep your money safe; check top 5 small finance banks provides an interest rate of 8.10% for a tenure of 30 months, making it one of the highest in the segment. Ujjivan Small Finance Bank offers 7.55% for a 24-month deposit, while Jana Small Finance Bank provides around 7.50% for deposits ranging from one to three years.

Similarly, Utkarsh Small Finance Bank offers 7.50% for tenures between two and three years, and AU Small Finance Bank provides about 7.10% for deposits ranging from 30 months and one day to 36 months.

Even after accounting for taxes, these rates can generate meaningful positive returns, especially when compared to uncertain performance in other asset classes.

In the current environment, allocating a portion of funds to fixed deposits could help investors reduce risk exposure while ensuring steady and predictable returns.