Suryoday Small Finance Bank made unexpected changes to their FD interest rates by raising them by as much as 41 basis points while other market participants reduced their rates. The bank implemented this interest rate increase specifically for deposits under ₹3 crore which provides better returns to both general and senior citizen customers.
The revised interest rates for regular customers at Suryoday Small Finance Bank now span between 4% and 8.60% with the maximum rate available for 5-year and 1001-day deposits. Senior citizens obtain the best interest rates at Suryoday Small Finance Bank which range from 4.5% to 9.10%. The annualized yield of tax-saving FDs for seniors reaches 9.42% which positions these products as leading competitors in the market.
The bank implemented this move during a period when SBI along with HDFC and ICICI reduced their FD interest rates because of the Reserve Bank of India’s 25 basis point repo rate cut. The bank implements this strategy to draw more deposits through improved interest rates. The bank increased its recurring deposit (RD) rates to reach 8.60% for five-year terms.
