Fixed Deposit Tracker: Some small finance banks are offering better interest rates on fixed deposits than some of the top banks including the State Bank of India (SBI) and HDFC Bank. The highest FD rate offered by SBI is 6.85% on the tenure of 5-10 years. For senior citizens, the largest lender offers 0.5% more interest. HDFC Bank's highest FD rate is 7.40% on the tenure of 2-3 years. Even as the deposit rates have been increasing since the last one year, traditional banks are far behind the attractive rates offered by some small finance banks (SFB). Because of the RBI rules, deposits in these banks are as safe as the traditional banks. 

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Here we are taking a look at the attractive FD rates offered by Suryoday Small Finance Bank (SSFB). 

SSFB offers 9% interest on a special tenure of 950 days. For senior citizens, the rate is 9.5% for the same tenure. On a tenure of 1-2 years, the small finance bank offers 8.5% interest (9% for senior citizens). For a five year tax-saving fixed deposit, a subscriber can get 8.25% interest (8.75% for senior citizens). 

Suryoday Small Finance Bank: Fixed Deposit rate chart 

Rates for amount < 1 Cr. Domestic Deposits (Effective: From September 29, 2018)
 
Period Interest Rate
(Per Annum)		 Annualised Yield°
(%)		 Senior Citizen Rate #
(Per Annum)		 Annualised Yield°
(%)
7 days to 14 days 4.00% 4.00% 4.50% 4.50%
15 days to 45 days 4.00% 4.00% 4.50% 4.50%
46 days to 90 days 5.00% 5.00% 5.50% 5.50%
91 days to 180 days 5.50% 5.50% 6.00% 6.00%
181 days to 240 days 7.50% 7.64% 8.00% 8.16%
241 days to less than 1Year 7.75% 7.90% 8.25% 8.42%
1 Year to 2 Year 8.50% 8.77% 9.00% 9.31%
Above 2 Year to 3 Year 8.75% 9.04% 9.25% 9.58%
950 Days* 9.00% 9.31% 9.50% 9.84%
Above 3 Yrs to less than 5Yr 8.00% 8.24% 8.50% 8.77%
5 Years 8.25% 8.51% 8.75% 9.04%
Above 5 Years to 10 Years 7.25% 7.45% 7.75% 7.98%

*Source: Bank website accessed on 11-02-2019

In the wake of the IL&FS crisis and concerns over Dewan Housing, investors are wary of depositing in NBFCs (non-banking financial companies) or some non-convertible debentures. However, deposits in small finance banks are as safe as other commercial lenders. These are covered by the Deposit Insurance and Credit Guarantee Corporation of India (DICGC). It insures each deposit to the tune of Rs 1 lakh for both the principal and interest. 

After the recent repo rate cut announced by the RBI, the probability of FD rates cut by financial institutions has increased. This means this is the best time to get the most of the high rates offered by the small finance banks.

Eligibility for Opening FD account with Suryoday Small Finance Bank:

As per the official website of the bank, an FD account with Suryoday Small Finance Bank can be opened by Resident individuals, Hindu Undivided Family, Sole proprietorship firms, Partnership firms, Limited companies and Trusts. The minimum amount to be deposited is Rs 1000. The fixed deposit can be opened for a minimum period of 7 days to a maximum of 10 years.