This SFB Offers 8.50% FD Rate — Check Top 10 Small Finance Banks Offering Highest Interest Rates

Fixed deposits (FDs) are still an affordable way to invest for long-term stable income with predictable returns and good returns for customers. Some of the biggest commercial banks are currently providing savings accounts with SFBs where interest rates are much higher than the ones offered by large commercial banks. Recently, Suryoday Small Finance Bank has changed its FD interest rate to 8.50% for senior citizens.

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The revised FD rates for Suryoday Small Finance Bank came into effect on 15 August 2026 and apply to deposits below ₹3 crore. FD tenures are 7 days to 10 years for the bank, and investors are also able to choose a period based on their financial situation.

Suryoday Small Finance Bank FD rates

With the new structure, regular customers can earn an interest rate of 8.25% per annum on five-year fixed deposits. This is an annualised yield of 8.51%, and senior citizens receive an even higher rate of 8.50% per annum and an annualised yield of 8.77% on the same five-year tenure.

The bank is also offering attractive rates on shorter and medium-term deposits. Senior citizens can earn 8.25% per annum on 30-month FDs and regular customers can earn 8.10%. Senior citizens get 7.95% for an 18-month FD compared to 7.80% for regular customers.

Key Suryoday FD rates

5 years: 8.25% for regular customers and 8.50% for senior citizens. 30 months: 8.10% for regular customers and 8.25% for senior citizens. 18 months: 7.80% for regular customers and 7.95% for senior citizens. FD tenure range: 7 days to 10 years. Deposit amount covered: Below ₹3 crore. Top 10 small finance and other banks with high FD rates

According to the FD data of Paisabazaar updated for August 14, 2026, several small finance banks remain prominent among banks with high FD interest rates.

Bank    Highest FD rate

• Suryoday Small Finance Bank    8.10%.
• Utkarsh Small Finance Bank    8.10%.
• Jana Small Finance Bank    8.00%.
• Shivalik Small Finance Bank    8.00%.
• Equitas Small Finance Bank    8.00%.
• Ujjivan Small Finance Bank    7.80%.
• ESAF Small Finance Bank    7.75%.
• SBM Bank    7.65%.
• DCB Bank    7.50%.
• Unity Small Finance Bank    7.50%

The data indicates the difference between the highest FD rates offered by SFBs and those available by some of India’s largest banks. SBI's highest regular FD rate in the above data is 6.45%, while Bank of Baroda offers up to 6.75%. HDFC Bank and ICICI Bank offer maximum rates of 6.50%.

Why are SFB FDs attracting investors?

The interest rate is the number one attraction. Investors who are comfortable with the risk profile and applicable terms of an SFB may find the deposits useful for generating predictable returns. The variety of tenures also enables customers to match their deposits with short-, medium- or long-term financial goals.

Senior citizens can benefit from the additional interest rates offered by many banks. However, investors should not decide on an FD only based on the headline interest rate. The bank's financial position, deposit insurance coverage, premature withdrawal rules, taxation and other applicable terms should also be taken into account.

Another important factor is that FD interest is generally taxable according to the investor’s tax rules. Therefore, the effective post-tax return can be lower than the advertised interest rate.

The comparison of higher FD rates should be done carefully

Small finance banks have emerged as a strong competitor in the deposit market by offering relatively attractive interest rates. Suryoday Small Finance Bank’s revised rates also reinforce this trend, where senior citizens can get 8.50% on the specified five-year FD.

But investors should compare rates across different tenures, not just the maximum advertised rate. The highest rate may apply only to a particular tenure, and other periods could carry significantly different rates.

Before booking an FD, customers should consult the latest rate card with the bank and have a clear understanding of the terms and conditions. The FD rates can change, and the rate that is applicable on the date of booking will largely determine the return on the deposit.

For investors with a long-term outlook for good returns, comparing SFBs with established private and public sector banks can help identify the best FD for them given their investment horizon and needs.