Suryoday Small Finance Bank Offers 8.25% Interest on Five-Year FD

SBI FD rates: Small finance bank offers 8.25% return; check where SBI and HDFC stand

A small finance bank is offering up to 8.25% interest on a fixed deposit, while the State Bank of India is offering 6.45% on a 444-day FD, according to the available rate comparison.

Suryoday Small Finance Bank is offering 8.25% interest on a five-year fixed deposit.

The comparison also lists rates from Utkarsh Small Finance Bank, Equitas Small Finance Bank, ESAF Small Finance Bank, SBM Bank India, DCB Bank, HDFC Bank, ICICI Bank, Axis Bank, Bank of India, Punjab & Sind Bank, Bank of Baroda, SBI and Union Bank of India.

The figures show that the highest rate in the comparison is available from a small finance bank, rather than from SBI or HDFC Bank.

Why fixed deposits are being considered

The report says the stock market is currently facing difficult conditions, while the gold market has also seen volatility.

It says the price of gold had fallen below 150000 rupees in the previous week.

Against this backdrop, the report raises the question of where investors should put their money.

According to the report, a fixed deposit can be an option in such circumstances because it offers a guaranteed return.

Fixed deposits continue to be described as a safe and popular investment option in the supplied material.

The material says that fixed deposits are considered secure because the investment is not linked to market risk.

For people who have ₹1 lakh available, the calculation of how much the deposit may grow over 10 years becomes important.

The source explains that the final amount depends on the interest rate and the way interest is added to the deposit.

It also says that depositors can choose a bank based on the interest rate it offers.

SBI’s listed rate

The State Bank of India is offering 6.45% interest on a 444-day fixed deposit, according to the comparison.

This rate is listed for a specific tenure of 444 days and should therefore be read alongside the tenure attached to every other rate.

The comparison does not present SBI’s 6.45% rate as a five-year rate; it identifies the tenure as 444 days.

That distinction matters because fixed-deposit rates differ according to the duration for which the money is kept with the bank.

The same comparison lists Union Bank of India at up to 6.55% for a 555-day FD.

Bank of Baroda is offering 6.75% on a 555-day fixed deposit.

Punjab & Sind Bank is offering 6.85% on a 666-day fixed deposit.

Bank of India is offering 6.85% on a 999-day fixed deposit.

These rates cannot be compared only by percentage because the associated deposit periods are different.

A depositor considering SBI would therefore need to look at both the 6.45% rate and the 444-day tenure mentioned in the comparison.

Where HDFC, ICICI and Axis Bank stand

HDFC Bank is offering 6.50% interest on deposits for a period beginning at three years and one day and ending before four years and seven months.

ICICI Bank is offering 6.50% on fixed deposits beginning at three years and one day and extending up to 10 years.

Axis Bank is also offering a maximum interest rate of 6.50%, with the rate listed for a three-year FD.

The listed HDFC Bank, ICICI Bank and Axis Bank rates are higher than the SBI rate shown in this comparison, although their tenures are not identical.

The comparison therefore places SBI at 6.45% for 444 days, while the three private-sector banks are listed at 6.50% for their respective periods.

The small difference between the rates should be considered together with the length of the deposit, since the source gives a separate tenure for each offer.

The figures do not show one common tenure across all banks, so they are a rate comparison rather than a single like-for-like maturity calculation.

Small finance banks offer the highest listed rates

Suryoday Small Finance Bank is offering 8.25% on a five-year FD, the highest rate mentioned in the comparison.

Utkarsh Small Finance Bank is offering 8.10% on a 666-day FD.

Equitas Small Finance Bank is offering 8% on a fixed deposit of three years and one day.

ESAF Small Finance Bank is also offering 8% on an 800-day FD.

The two 8% offers in the comparison are attached to different tenures: three years and one day for Equitas, and 800 days for ESAF.

SBM Bank India is offering 7.65% on deposits of more than 18 months and less than two years.

DCB Bank is offering 7.50% on deposits of 24 months to less than 25 months.

The rates listed for these small finance banks are above the rates mentioned for SBI, HDFC Bank, ICICI Bank and Axis Bank.

However, the tenures vary significantly, from 666 days and 800 days to five years.

For that reason, the highest percentage does not by itself identify which deposit will mature with the largest final amount.

The final outcome also depends on the principal deposited, the tenure and the manner in which interest is credited or reinvested.

How ₹1 lakh can grow over 10 years

The supplied calculation focuses on a deposit of ₹1 lakh kept for 10 years.

It explains that the amount may grow differently depending on whether the FD earns 6%, 7% or 8% interest.

The material presents these rates as examples for understanding the effect of interest over a long period.

It says that even a small difference in the interest rate can have a substantial effect on the fund over a longer duration.

The source specifically states that receiving 8% instead of 6% could leave the depositor with approximately ₹39,400 more after 10 years.

That comparison is intended to show why the interest rate becomes important when the deposit is held for a long period.

The source does not treat the interest rate as the only factor to examine before opening an FD.

It also asks investors to check how the bank calculates and pays the interest.

What cumulative FD means

In a cumulative FD, the interest is not paid into the depositor’s bank account during the deposit period.

Instead, the interest is added back to the principal amount.

In the next interest calculation, the depositor earns interest not only on the original ₹1 lakh but also on the interest already added to it.

The source describes this process as compounding.

In simple terms, the interest becomes part of the amount on which subsequent interest is calculated.

This is why the source says that investors should examine the interest-payment structure when choosing an FD.

The comparison between 6% and 8% over 10 years is linked to this longer-term effect of compounding.

A cumulative deposit can therefore produce a different maturity amount from a deposit where interest is paid separately rather than added to the principal.

The supplied material does not provide a separate maturity figure for every rate and tenure listed in the bank comparison.

It instead gives the ₹1 lakh and 10-year example to explain how the rate and compounding process influence growth.

Deposit protection and bank choice

The source says that money invested in an FD remains safe and that deposits receive cover of up to ₹5 lakh.

It also says that fixed deposits do not carry market risk in the same way as market-linked investments.

This is presented as one reason why fixed deposits remain the first choice for many people.

The material describes the product as both safe and popular, particularly in the context of volatility in the share market.

At the same time, the comparison shows that the interest rate offered by one bank may differ from the rate offered by another bank.

The tenure can also differ considerably, with the listed offers ranging from 444 days to 10 years.

An investor comparing SBI with other banks therefore needs to read the rate and the qualifying period together.

The source’s calculation also indicates that a difference in rates can become more meaningful when the money remains invested for a longer period.

The figures in one view

Suryoday Small Finance Bank is listed at 8.25% for five years, while Utkarsh Small Finance Bank is listed at 8.10% for 666 days.

Equitas Small Finance Bank and ESAF Small Finance Bank are both listed at 8%, with their respective tenures set at three years and one day and 800 days.

SBM Bank India is listed at 7.65% for more than 18 months and less than two years, while DCB Bank is listed at 7.50% for 24 months to less than 25 months.

HDFC Bank, ICICI Bank and Axis Bank are each listed at 6.50% for the periods specified in the comparison.

Bank of India and Punjab & Sind Bank are both listed at 6.85%, although Bank of India’s tenure is 999 days and Punjab & Sind Bank’s is 666 days.

Bank of Baroda is listed at 6.75% for 555 days, and Union Bank of India is listed at up to 6.55% for 555 days.

SBI is listed at 6.45% for 444 days.

The interest figures cited in this comparison are sourced from Policybazaar.com, according to the report.

For the 10-year example, the source’s central message is that compounding and the difference between the applicable rates can materially change the eventual value of a ₹1 lakh deposit.

The comparison consequently places the small finance bank offers at the top of the listed rate range, while also showing the specific rates and tenures available from SBI and other major banks.