Suryoday Small Finance Bank has announced revisions to its interest rates on fixed deposits (FDs) and savings accounts, effective October 8, 2025. The revised rates aim to provide customers with competitive returns on their deposits.
For fixed deposits below ₹3 crore, the bank now offers interest rates ranging from 4% to 8.05%. The highest interest rate of 8.05% is applicable for deposits with a tenure of 5 years. Senior citizens can earn up to 8.10% on fixed deposits. These rates are effective as of October 8, 2025.
The bank's savings account interest rates vary depending on the account balance. The highest rate offered is 7.75% for balances above ₹5 crore. The revised savings account interest rates went into effect on October 1, 2025.
Small finance banks (SFBs) have been gaining attention for their higher interest rates on fixed deposits compared to traditional banks. This is because these banks primarily serve underserved segments of the economy. While SFDs offer higher returns, they might carry slightly higher risk because they serve niche borrower segments, which makes them more vulnerable to defaults. However, deposits up to ₹5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring the safety of small investments.
For investors looking to maximize returns without taking significant market risks, small finance bank FDs can be an appealing option, especially for short to medium-term investments. However, it's important to carefully assess the bank's credibility and track record before making any investment decisions.
Here's a quick look at the Suryoday Small Finance Bank's FD interest rates:
- General Public: 4% to 8.05% for deposits below ₹3 crore.
- Senior Citizens: 4.20% to 8.10%.
- Highest Rate: 8.05% for a 5-year tenure (8.10% for senior citizens).
When considering fixed deposits, it's essential to compare rates and features across different banks. Several other small finance banks also offer competitive FD rates. Investors should consider factors such as their risk appetite and investment horizon before making a decision.
