Jana Small Finance Bank, one of India’s youngest small finance banks, has launched its ‘Liquid Plus’ fixed deposit offering. This feature gives interest rate of 6.75% per annum for tenures ranging from 7-180 days.

This rate applies to a minimum deposit of ₹10 lakh for retail deposits up to ₹3 crore, and for bulk deposits between ₹3 crore and ₹200 crore per customer.

This move positions the bank prominently in the competitive landscape of short-term investments.

Here’s a look at interest rate offering of other small finance banks for the same tenure:

Bank	Interest Rate	Tenure
Jana Small Finance Bank	6.75%	7 to 180 days
Ujjivan Small Finance Bank	Up to 4.75%	Up to ₹3 crore
Utkarsh Small Finance Bank	Up to 5.50%	Up to ₹3 crore

(Source: Bank websites)

Here’s a look at interest rate offering of commercial banks for the same tenure:

Bank	Interest Rate	Tenure
State Bank of India (SBI)	Up to 5.50%	7 to 180 days
HDFC Bank	Up to 4.50%	7 to 180 days
ICICI Bank	Up to 4.75%	7 to 180 days

(Source: Bank websites)

Competitive analysis

Jana’s competitive rate of 6.75% is significantly higher than the offerings from both small finance banks and major commercial banks. However, it must be noted that this rate is applicable only for deposits starting at ₹10 lakh.

In contrast, the rates from Ujjivan and Utkarsh, which are up to 4.75% and 5.50% respectively, are for all deposits up to ₹3 crore. Major commercial banks like SBI, HDFC, and ICICI offer rates ranging from 4.50-5.50% for similar tenures.

Ajay Kanwal, Managing Director and CEO of Jana Small Finance Bank, said “We recognised gaps in short-term money management and aimed to enhance our product offerings. Historically, our deposit book has focused on longer tenures, and this initiative allows us to cater to clients looking for flexibility in short-term deposits.”

He also shared insights on the bank’s recent performance.

He noted that that the current quarter has shown improvement compared to the first quarter, driven by enhanced collections and operational efficiencies.

With features like same-day redemption, partial withdrawal options, and no pre-maturity charges, the Liquid Plus FD may enhance customer flexibility, the small finance bank said.