Fixed Deposits or FDs are one of the most trusted investment tools, which are mostly chosen by senior citizens. In the last few years, alternative investments like equities and commodities have gained momentum, but FDs did not lose their importance to secure the money when markets are volatile. However, an investor can look out for short-term FDs, as the interest rates paid on FDs can be changed by the banks. So, your expected returns can be affected. Here, FD interest rates offered by Suryoday Small Finance Bank have been discussed which is giving good returns on short-term FDs.
Suryoday Small Finance Bank Domestic Fixed Deposit
Suryoday Small Finance Bank is a renowned small finance bank that has grown its customer base with time securing their savings for a long time now. The bank is giving good interest rates o short-term FDs than many other private and private banks.
For Suryoday Small Finance Bank account holders, for above 9 months to less than 1 year FD interest rate for the public is 5.75% and 6.25% for senior citizens, for 1 year to 1 year 6 months FD interest rate for the public is 6.50% and 7.00% for senior citizens, for above 1 Year 6 months to 2 years FD the rate for the public is 6.50% and 7.00% for senior citizens, for above 2 years to less than 3 years FD the rate for the public is 6.25% and 6.75% for senior citizens, for 3 Years FD the interest rate for the public is 7.00% and 7.50% for senior citizens, for above 3 years to less than 5 years FD interest rate for the public is 6.50% and 7.00% for senior citizens, and for 5 years FD the interest rate for the public is 6.75% and 7.25% for senior citizens. However, FDs for more than 5 years are giving lesser than the above-mentioned rates.
These latest FD interest rates came into effect on March 10, 2022.
Best FD interest rates offered by Suryoday Small Finance Bank
These are the best interest rates offered by the bank of FDs:
|Tenure||Rate for public||Rate for senior citizens|
The mentioned interest rates can be changed as per the bank's board of directors' decision. Banks generally change the interest rates in different financial years and the decisions are mostly driven by the RBI repo rate. With an RBI repo rate hike, the interest rates on fixed deposits/FDs can be hiked, and with an RBI repo rate reduction, the interest rates on FDs can be curtailed. The RBI has recently hiked its key lending rate, the repo rate. So, investors should check the official website of Suryoday Small Finance Bank for any changes in the interest rate.
According to the bank, "The rate applicable on premature withdrawal would be 1% less than the rate applicable from the rate for original /contracted tenure for which the deposit has been booked (as on the date of booking the deposit), and from the rate for the actual tenure for which the deposit was in force with the Bank (as on the date of booking the deposit)."
Benefits of Suryoday Small Finance Bank Fixed Deposits
In the case of an FD with Suryoday Small Finance Bank, interests on Term Deposits are quarterly for deposits of tenor above 6 months. Simple interest will be paid at maturity for deposits of less than equal to 6 months. Additionally, "cumulative interest/ re-investment interest is calculated every quarter and is added to the principal such that interest is paid on the interest earned in the previous quarter as well'.
Although it is a small finance bank, the investments will be safe with it, as it has achieved a reputation over years on that. Additionally, the RBI provides insurance on FDs for up to Rs. 5 lakhs. So, one can choose to select the said bank for FD, by opening an account there. Suryoday Small Finance Bank took only 8 years to become a small finance bank from a Micro Finance Bank. A present, they have more than 1.4 million customers. The small finance bank is among the 10 companies and the only one from Maharashtra to obtain a 'Small Finance Bank' license from the Reserve Bank of India (RBI).