Now Reading: Suryoday offers 8.05% FD rate to senior citizens
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Suryoday offers 8.05% FD rate to senior citizens
Suryoday Small Finance Bank is offering senior citizens 8.05% interest on five-year fixed deposits of up to Rs 3 crore, according to The Economic Times, citing Paisabazaar data updated on August 12,…
The Story in Brief
Suryoday Small Finance Bank is offering senior citizens 8.05% interest on five-year fixed deposits of up to Rs 3 crore, according to The Economic Times, citing Paisabazaar data updated on August 12, 2026. Jana Small Finance Bank offers 8%, while Ujjivan offers 7.70%. Rates at other listed small finance banks range from 6.25% to 7.50%.
Small finance bank deposits are insured by DICGC up to Rs 5 lakh. Banks must deduct TDS when annual FD interest exceeds Rs 1 lakh for senior citizens, even if final tax liability is nil. Eligible depositors can submit Form 15H. Under the new tax regime for FY 2025-26, income up to Rs 12 lakh can qualify for the Section 87A rebate.
The Indian Opinion
The loudest pitch here is that a higher FD rate means a better deal, while the opposite lazy claim is that small finance bank deposits are unsafe. Both miss the practical point. DICGC cover is limited to Rs 5 lakh, including principal and interest, so spreading deposits matters. Tax treatment also depends on total income, not merely TDS deducted. The useful test is simple: does the planned deposit, with interest, stay within the insurance limit? If not, what justifies the extra risk?
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
