Interest Rates on Fixed Deposits Rise in Suryoday Small Finance Bank
Suryoday Small Finance Bank has increased FD interest rates for both regular and senior citizens, matching it with other small finance banks like ESAF and Shivalik. For long-term investments, the returns on fixed deposits can benefit significantly compared to public sector and private banks.
Highlights
- •Suryoday increases fixed deposit rates up to 8.25% for senior citizens
- •Higher returns in small finance banks compared to public and private sectors
- •Competition among small finance banks creates attractive investment opportunities
- •Deposit insurance of Rs 5 lakh is available under the DICGC scheme
Suryoday Small Finance Bank has recently hiked its fixed deposit (FD) interest rates, offering a maximum rate of 8.10% on select 30-month deposits. For senior citizens, the rate climbs to 8.25%, making it more attractive for the elderly demographic.
The bank's regular FD offerings have also been adjusted. A 18-month deposit fetches 7.60% in interest, while 8.25% is available for senior citizen accounts. For long-term investors, a five-year FD offers 7.90% returns, with the rate bumping up to 8.05% for seniors.
Competitive Returns in Small Finance Banks
While Suryoday is offering higher rates compared to its peers, other small finance banks are also providing generous terms. ESAF and Shivalik Financial Banks are among the institutions providing returns of up to 8.30% and 8.50%, respectively.
In comparison, public sector banks typically offer lower interest rates around 7%. Major players like Punjab National Bank, Bank of India, and Canara Bank provide a fixed rate of approximately 7.1%. The State Bank of India (SBI) offers slightly better terms at 7.05%.
Private sector banks are also offering competitive returns, with IDFC First Bank and Yes Bank offering interest rates of around 7.90% and 7.75%, respectively. DCB Bank stands out with a rate of 7.65%. The leading private banks like HDFC and ICICI continue to offer rates between 7% and 7.1%. These higher returns in the small finance sector are driven by their competitive nature, allowing them to attract more customers.
