FD Deadline Inching Closer! Only 4 Days Left For Senior Citizens To Get 9.1% Returns on FD From THIS Bank

Amid successive repo rate cuts by the Reserve Bank of India (RBI), several banks have lowered their interest rates on fixed deposits (FD). Suryoday Small Finance Bank is offering lucrative interest rates on FD for general customers as well as senior citizens. However, the Navi Mumbai-headquartered company has announced to reduction in interest rates on FDs, which will come into effect from June 1, 2025.

The private sector bank is currently offering an FD rate of 9.1% to senior citizens for a tenure of five years. The long-term FD rate may also offer tax investment and saving options to investors in the instrument.

For investors who are looking to park their money into a low-risk investment tool, which will offer them guaranteed returns, here are the current FD rates by Suryoday Small Finance Bank which will remain valid till 31 May, 2025. The bank FD rates for Suryoday Small Finance Bank will be reduced by as low as 8% from 1 June.

Suryoday Small Finance Bank FD Rates Till 31 May, 2025

Period	Interest Rate (Per Annum)	Annualised Yield (%)	Senior Citizen Rate (Per Annum)	Senior Citizen Annualised Yield (%)
Current Rates
Tax Savings Fixed Deposit (5 Years)	8.60%	8.88%	9.10%	9.42%
Effective from June 01, 2025
Tax Savings Fixed Deposit (5 Years)	8.00%	8.24%	8.40%	8.67%

Suryoday Small Finance Bank will offer bank FD rates from 4% to 8% for general citizens on fixed deposits below Rs 3 crore. The private sector bank has significantly slashed FD rates for its 5 year tenure FDs.

The bank has reduced FD rates on five-year deposit tenure by 60 basis points. Which means that the annual interest rate on five-year FDs will be reduced from 8.6% to 8% for general customers. Whereas, the interest rate on the same FD has been reduced from 9.1% to 8.4% for senior citizens.

For bank customers to get the maximum benefit on their fixed deposits, it is better to start their FD before May 31. Starting FD before 1 June, 2025, would help customers to get higher returns on their FD amount, especially senior citizens and super citizens. Apart from Suryoday Bank, several other banks have also revised their FD rates including the State Bank of India, HDFC Bank, Canara Bank, ICICI Bank, etc.

What is a Fixed deposit scheme?

A fixed deposit (FD) scheme, also known as term deposit, is a safe investment instrument where people invest their money in lumpsum amount for a fixed duration, ranging from seven days to five years, to get assured returns. Generally, banks offer the facility of fixed deposit. Most of the people can get FD interest returns up to 8-9% for investment duration of one year.

Unlike equities and stock markets, FDs offer lower interest rates on investment, at the same time they are as volatile or risky as equities. Under this investment scheme, individuals invest their amount in a lump sump for a specific period with the bank. FD scheme tenure can be less as seven weeks to as high as 5 years. Not just public sector banks, private banks, small sector and cooperative banks also offer fixed deposit facilities.

What Are Tax Saving FDs?

Tax saving FDs are the ones where people invest their money in lumpsum for a longer duration, like five years. They can get income tax benefits and claim deduction under Section 80 C of the Income Tax Act, 1961. The tax saving benefit on FD for five years tenure is applicable only for individuals who have opted for new-tax regime.
Under this section, people can claim a tax deduction of up to Rs 1.5 lakh per year by opting for these fixed deposit schemes. Most of the banks offer tax saving FDs with a fixed tenure of 5 years.