5-year FDs offer 7.90% return; another bank revised interest rates in February

Published: Tuesday, February 10, 2026 at 3:20 am

Small Finance Bank Announces Revised FD Interest Rates

Suryoday Small Finance Bank has announced revised interest rates for its fixed deposit (FD) offerings, effective immediately. The bank is offering interest rates ranging from 4% to 7.90% for general citizens, with the highest return available on a 5-year tenure.

Senior citizens, aged 60 years and above, are eligible for additional returns, ranging from 4.20% to 7.90%. However, this benefit is exclusively available to resident Indians. Notably, senior citizens do not receive any additional interest on the 5-year maturity slab.

The second-highest interest rate is offered for an 18-month tenure, with general citizens receiving 7.50% and senior citizens receiving 7.70%. A 1-year investment yields a 7.25% return for general citizens and 7.45% for senior citizens.

The bank's interest payment structure varies based on the deposit tenure. For deposits of 6 months or less, simple interest is paid upon maturity. For tenures longer than 6 months, interest is paid quarterly. Reinvestment interest is calculated quarterly and added to the principal. Monthly deposit schemes will also have interest calculated quarterly. There is no premature exit penalty for cumulative fixed deposits booked for a period of 1 year.

Interest rates for other tenures are as follows: 7 to 14 days at 4%, 15 to 45 days at 4.25%, 46 to 90 days at 4.50%, 91 days to 6 months at 5%, 6 months at 6.50%, 6 months to 9 months at 5.50%, more than 9 months to 1 year at 6%, more than 1 year to 13 months at 7.25%, more than 18 months to 2 years at 7.25%, more than 2 years to 3 years at 7.25%, more than 3 years to 5 years at 6.75%, and more than 5 years to 10 years at 7.25%.

Investors are advised to consult the bank's official website or visit a branch for the most up-to-date information before making any investment decisions.

BNN's Perspective:

The revised FD rates from Suryoday Small Finance Bank offer a competitive option for investors seeking higher returns. While the 5-year tenure provides the most attractive rate, the varying interest rates across different tenures allow for flexibility based on individual financial goals. The additional benefits for senior citizens are a welcome feature. However, investors should carefully consider the terms and conditions, including the interest payment structure, before committing to a fixed deposit.

Keywords: fixed deposit, FD, interest rates, Suryoday Small Finance Bank, senior citizens, investment, tenure, returns, financial, banking

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