FD Interest Rate Hike: Earn Up To 8.10% On Deposits As Savings Interest Jumps To 7.75%

Suryoday Small Finance Bank has announced a new update for customers who want to earn more on their deposits. The bank has revised its fixed deposit (FD) and savings account interest rates, making it one of the few small finance banks in India to offer up to 8.10% interest. The new FD rates are effective from October 8, 2025, while the revised savings account rates came into effect from October 1, 2025.

Better Returns for Depositors

This revision is good news for people who prefer safe investment options. The bank has increased rates across several tenures, allowing customers to get higher returns on medium- and long-term deposits. For FDs below ₹3 crore, interest rates now range between 4% and 8.05%, depending on the period of investment.

The highest return of 8.05% is available for a 5-year fixed deposit, making it a popular choice among long-term investors looking for stability and growth. Meanwhile, shorter deposits, such as those under a year, still offer modest rates starting from 4%.

By increasing interest rates, the bank hopes to attract customers who want to grow their savings safely while earning better returns than a regular account.

Revised Fixed Deposit Rates Explained

The new FD rates depend on how long you keep your money with the bank. For example, very short deposits of 7 to 14 days now earn 4%, while slightly longer ones like 15 to 45 days earn 4.25%. For people who can keep their money for at least six months, the rate goes up to 6.75%.

The biggest jump happens when you invest for longer periods, one year and beyond. For a 1-year FD, the interest rate is 7.40%, and for a 5-year FD, it’s the highest at 8.05%. Even for deposits up to 10 years, customers can earn 7.25%.

These new rates apply to deposits below ₹3 crore and can change in the future depending on market trends and the bank’s internal policies.

Extra Benefits for Senior Citizens

Senior citizens always get a little extra when it comes to interest. Suryoday Small Finance Bank continues that practice by offering them slightly higher rates. Depending on how long they invest, senior citizens can now earn between 4.20% and 8.10%.

The highest rate of 8.10% is also for a 5-year FD, giving retirees a steady and safe source of income. For instance, a short-term deposit of 91 days offers 5.20%, while a one-year deposit earns 7.60%. This makes fixed deposits a smart choice for older customers who prefer safety and predictable returns.

Revised Savings Account Interest Rates

Along with FDs, Suryoday Small Finance Bank has also revised its savings account interest rates. These rates are based on the amount of money a customer keeps in their account—known as “daily balance slabs.”

Here’s how it works:

Balances up to ₹1 lakh will now earn 2.50% interest. For balances between ₹1 lakh and ₹5 lakh, the rate increases slightly to 3%. Those who keep between ₹5 lakh and ₹10 lakh will earn 6.25%, while balances between ₹10 lakh and ₹5 crore get 7.50%.

The highest savings interest rate, 7.75%, is for people maintaining balances between ₹5 crore and ₹25 crore. For anyone keeping more than ₹25 crore, the bank provides customised rates, which can be confirmed by visiting the nearest branch.

Why This Revision Matters

The revision in both FD and savings rates makes Suryoday Small Finance Bank a strong choice for customers looking to balance safety and earnings. At a time when many banks offer lower returns on savings accounts, Suryoday’s move could attract depositors looking to grow their money without taking big risks.

For investors, this update highlights how small finance banks continue to offer competitive rates compared to traditional banks. The move may also encourage other banks to follow a similar path to attract more savings and deposits.

With higher rates for both regular and senior citizens, Suryoday Small Finance Bank has made it easier for customers to earn better returns while keeping their investments safe, whether through fixed deposits or everyday savings.

Disclaimer: The information in this article is based on the latest interest rate details available on the official website of the concerned bank as of October 2025. Interest rates are subject to change at the bank’s discretion. Readers are advised to verify the latest rates directly with the bank before making any investment decisions.