Why you should invest in capital small finance?

Are you planning to invest in a small finance bank?? Then you need to know its pros and cons if any. Nowadays a lot of people prefer to invest money in small finance banks as fixed deposits. The reason is that in small finance bank FD’s the interest is very high which varies from bank to bank but generally, it is about 7%-9% per annum. The interests offered by large banks like SBI, ICICI, HDFC Bank, and many more, are not that much compared to small finance banks. Investing in large banks is safe with no doubt but due to the low returns, people choose small finance bank FDs. The large banks offer interest of about 5%-7.5%. But few things need to be emphasized while investing in small finance banks:

• Interest Rate of FD: Firstly, the FD interest rate is the key point to choosing a small finance bank FD. You need to check how much interest rate is given on your FD. More will be the interest rate, more will be your profit.
• Penalty on Withdrawal: You need to check how much penalty the bank is giving on withdrawal of your FD. Always, choose a bank that gives a low penalty on withdrawal of your FD.
• Tenure: Tenure is basically the period in between which you have to return on your investment. You need to choose a bank whose FD tenure is highest in the minimum period.
• Credibility: Always, select a bank which provides good credibility and a higher interest rate.

Like, major banks and small banks also provide the facility of internet banking, debit cards. Small finance banks like AU Small Finance Bank, Ujjivan Small Finance Bank, Fincare Small Finance Bank, and so on provide all these facilities.

Capital small finance or small financial bank are considered as the safest form of investment available today's. This is small financial bank that give the higher rate of interest or return. While investing one should remember that how much return we get from the investment without the risk. So unlike the large commercial bank such as State Bank of India ICICI bank and the other banks small financial banks are good.