Big banks like SBI-HDFC are yearning here, while small banks are having a gala time

At this time, everyone from the country's big commercial banks like SBI and HDFC Bank to the RBI Governor and Finance Minister are worried about the continuous decrease in bank deposits. While on the other hand, small finance banks are having a great time with deposits. People's FD deposits are continuously increasing in small banks. What is the reason behind this?

One big reason for this is that small finance banks generally give 8 percent interest on FDs. That is why people are preferring to keep their money in small finance banks. There are many other reasons for the increase in deposits of small finance banks…

Interest up to 9%

There are more than half a dozen small finance banks in the country which are giving 100 to 125 basis points more interest on fixed deposits than SBI or HDFC Bank. Whereas senior citizens are getting 9 percent or more interest on FD. Senior citizens also have more deposits in investment tools like FD. That is why these banks are getting good deposits.

If we look at it as an example, Utkarsh Small Finance Bank and Suryodaya Small Finance Bank are offering 8.5 percent interest on FDs of 2 to 3 years.

Equitas Small Finance Bank is offering 8.5 percent interest on FDs of less than 3 years. Whereas Unity Small Finance Bank is offering 9 percent interest on FDs of just 1001 days.

In contrast, SBI or HDFC Bank are offering maximum interest of 7.1 to 7.4 percent on special FD schemes like Amrit Kalash.

These facilities are also available

Another reason for the deposit growth of small finance banks compared to big banks is the facilities provided to the customers.

These banks are providing many services like staff's home visit, investment in FD without opening an account etc. at low and reasonable charges. That is why people are showing interest in increasing their deposits in these small finance banks.