Suryoday Small Finance Bank FD Interest Rate
Suryoday Small Finance Bank is a new-age bank that took effect on January 23, 2017. The bank aimed at providing banking services to the ‘banked’, ‘under-banked’ and ‘unbanked’ sections of society. Till now, the bank has 289 branches in 8 states in India. Suryoday is the first small finance bank to obtain a licence from the Reserve Bank of India (RBI) in Maharashtra.
Interest Rates Chart 2023
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 14 days||4%||4.5%|
|15 days to 45 days||4.25%||4.75%|
|46 days to 90 days||4.5%||5%|
|91 days to 6 months||5%||5.5%|
|Above 6 months to 9 months||5.5%||6%|
|Above 9 months to less than 1 Year||6%||6.5%|
|Above 1 Year to 15 months||8.25%||8.75%|
|Above 15 months to 2 years||8.5%||9%|
|Above 2 years to 3 years||8.6%||9.1%|
|Note: All interest rates are updated as of 30th Nov 2023|
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All you need to know about Suryoday Small Finance Bank FD Interest RateTypes of Suryoday Small Finance Bank Fixed DepositsPros of investing in Suryoday Small Finance Bank Fixed DepositCons of investing in Suryoday Small Finance Bank Fixed DepositSuryoday Small Finance Bank’s FD Eligibility CriteriaDocuments required for Suryoday Small Finance Bank’s FD accountHow to Open an FD with Suryoday Small Finance Bank?Premature withdrawal of FDTax implications on Suryoday Small Finance Bank FD How to claim tax benefits?
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Types of Suryoday Small Finance Bank Fixed Deposits
Fixed Deposits (FDs) are a secure way of investing wherein you can deposit your money for a fixed period at a predetermined fixed rate of interest which is usually higher than a savings bank account.
Regular Fixed Deposit
You can start a standard FD with a minimum investment of ₹1,000 and, after that, in multiples of ₹1. The tenure of this deposit ranges from 7 Days to 10 years. For a tenure of up to 6 months, the calculation will be on a simple interest basis. Interest will be compounded only for reinvestment of FDs. Investors can also avail of loans against their FDs. In the event of premature withdrawal, the penalty is 1%. The option of auto-renewing the FD is available. If not opted, the principal and interest are paid back to the depositor's savings account with the Suryoday Small Finance Bank.
Non-Callable Fixed Deposit Scheme
This scheme is for deposits of minimum ₹20 lakhs and up to ₹1.99 crores. The scheme's tenure is from 1 year to 10 years, wherein premature closure, loan, or auto-renewal is not allowed. Since premature closure is not allowed, this scheme offers a 0.25% higher rate of interest in comparison to other FD schemes. Short-term fixed deposit booking is not available in this product.
Regular Tax Saver Fixed Deposit
Unlike standard FDs, investors can not withdraw their deposits before 5 years but, in a given financial year, can avail of income tax deduction of up to ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. The minimum deposit amount is ₹1,000 and multiples of ₹1 after that, while the maximum is ₹1.5 lakhs. Loans against this scheme and auto-renewal facilities are not available. A nomination facility is available; in case of joint deposits, the tax benefit under 80C will be available only to the first holder of the deposit. Senior citizens get an additional 0.5% rate of interest.
Pros of investing in Suryoday Small Finance Bank Fixed Deposit
- Period: The FD with Suryoday Small Finance Bank ranges from 7 days to 10 years.
- Convenient: If you already have an account with the bank, you can invest in FD hassle-free using online banking in a few minutes.
- DICGC insurance: The amount invested with the Bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs.
- Minimum amount: Fixed deposits with Suryoday Small Finance Bank can be opened with a minimum investment amount of ₹1,000.
- Preference to senior citizens: Senior citizens earn an additional 0.5% p.a. fixed deposits.
- Nomination facility: Depositors can nominate beneficiaries for their investments in Suryoday Small Finance Bank FDs.
Cons of investing in Suryoday Small Finance Bank Fixed Deposit
- Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed-rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.
Suryoday Small Finance Bank’s FD Eligibility Criteria
The following are eligible to open their fixed deposit accounts with Suryoday Small Finance Bank:
- Any person, in an individual capacity,
- Payment bank,
- Total Administrative Service Corporation (TASC),
- Limited liability company,
- Sole proprietary concern,
- Members of charitable trusts,
- Educational institutions,
- Hindu Undivided Family (HUF),
- Private traders,
- Partnerships firms,
- Societies & corporates.
Documents required for Suryoday Small Finance Bank’s FD account
Banks require the below-listed documents for completing the mandatory Know Your Customer (KYC) procedure before opening an account for its customer.
- For identification proof: PAN card, driving licence, Passport, Voter’s ID, Aadhar card, NREGA card, or Govt./Defense ID card.
- For address proof: Aadhar card, ration card, domicile certificate with communication address issued by Municipal Corporation, NREGA card, senior citizen card issued by State/Central Government of India (if it has an address).
- Two recent passport-size photographs of account holders.
How to Open an FD with Suryoday Small Finance Bank?
You can open FD in Suryoday Small finance bank either by online or offline mode:
Using Suryoday Small Finance Bank Internet banking website:
Step 1: Log in to the Suryoday Small Finance Bank internet banking website
Step 2: Go to “Accounts and Cards”.
Step 3: From the menu, select “Term Deposits”. Now select the type of FD you want to invest in.
Step 4: Click the “Apply now” tab and a form will appear. Fill out the form and submit it. The bank’s representative will reach you for further procedure.
Offline by visiting the nearest Branch:
Step 1: Visit the nearest branch of Suryoday Small Finance Bank
Step 2: Obtain and fill up the form indicating the FD tenure, amount and other preferences
Step 3: Submit the form and a copy of your Aadhar and PAN card; the bank officials will process the form and create an FD.
Premature withdrawal of FD
- If you wish to close your fixed deposit account, the bank will pay you back the principal amount and the interest either at a lower interest rate or after deducting a 1% penalty.
- Also, the rate applicable for premature withdrawal will be the lower of the following two:
- The rate for the original/contracted tenure for which the deposit has been booked (as of the date of booking the deposit)
- The rate for the actual tenure for which the deposit was in force with the Bank (as of the date of booking the deposit)
Tax implications on Suryoday Small Finance Bank FD
According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
- Taxpayers can invest in FD either through public or private sector banks.
- Individuals and HUFs can avail tax deductions by investing in tax savings FDs.
- Bank's five-year tax saving FD offers exemptions under Section 80C.
- Investors cannot get loans against these FDs.
- In the case of joint holders, only the first holder can get tax benefits.
How to claim tax benefits?
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
- TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year.
- For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.
In how many years will the FD double in Suryoday Small Finance Bank?
To know how many years Suryoday Small Finance Bank Bank FD will double, we can follow the 72 rule. We have to divide 72 by the interest rate; the result will be the number of years Suryoday Small Finance Bank Bank FD will double. The highest Suryoday Small Finance Bank FD interest rate is 9.1%, so that investors will double their investment in 7.91 years. Similarly, senior citizen depositors will double their FD investment in 7.5 years, where the highest FD rate for senior citizens is 9.6%. This calculation is as of May 5, 2023.
How to check the fixed deposit balance in Suryoday Small Finance Bank?
You can check Suryoday Small Finance Bank FD balance online or offline. Log in to the Suryoday Small Finance Bank internet banking portal for online mode. Alternatively, you can visit the nearest Suryoday Small Finance Bank bank to update your passbook for FD balance enquiry.
Is the ₹5 lakhs DICGC insurance cover applicable on Suryoday Small Finance Bank FD?
Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover is applicable on Suryoday Small Finance Bank FD.
Is there any penalty in case of premature withdrawal of FD?
Yes, if you wish to close your fixed deposit account, the bank will pay you back the principal amount and the interest either at a lower interest rate or after deducting a 1% penalty.
Is TDS applicable to the interest earned on the fixed deposit?
TDS (Tax Deducted at Source) does not apply to the interest earned up to ₹40,000 (₹50,000 for senior citizens) in a given financial year. If the investor’s total income is lower than the taxable limit, they can furnish Form 15G/15H when opening an FD account to avoid TDS.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.