Suryoday Small Finance Bank, a modern banking institution established on January 23, 2017, is committed to serving diverse segments of society, including the ‘banked,’ ‘under-banked,’ and ‘unbanked.’ Presently, the bank operates an extensive network of 289 branches across eight states in India. Notably, Suryoday Small Finance Bank holds the distinction of being the first small finance bank in Maharashtra to secure a license from the Reserve Bank of India.
Diverse Range of Fixed Deposit Options
Suryoday Small Finance Bank offers a range of Fixed Deposit (FD) options, providing secure investment opportunities with competitive interest rates. These FD options include:
Regular Fixed Deposit: With a minimum investment of just ₹1,000 and flexible tenure options ranging from 7 days to 10 years, the Regular FD is an accessible choice for all. Interest accrues on a simple interest basis for tenures up to 6 months, while interest is compounded for reinvested FDs. The bank also allows for loans against these FDs, with a nominal 1% penalty for premature withdrawal.
Non-Callable Fixed Deposit Scheme: Designed for deposits ranging from ₹20 lakhs to ₹1.99 crores, this scheme offers higher interest rates, as premature closure, loans, and auto-renewals are not permitted. This makes it an attractive option for those seeking stable, high-yield investments over longer terms.
Regular Tax Saver Fixed Deposit: Tailored to offer income tax deductions under Section 80C of the Income Tax Act of 1961, this FD option requires a minimum deposit of ₹1,000, with multiples of ₹1 thereafter, up to a maximum of ₹1.5 lakhs. While withdrawals within the first 5 years are not allowed, senior citizens enjoy an additional 0.5% interest rate. Nomination facilities are available, but loans and auto-renewals are not.
Advantages of Suryoday Small Finance Bank Fixed Deposits
Flexible Tenure: Choose from tenures ranging from 7 days to 10 years.
Convenience: Existing bank account holders can easily invest in FDs through online banking.
DICGC Insurance: Deposits up to ₹5 lakhs are protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Affordable Minimum Investment: Begin your FD journey with just ₹1,000.
Senior Citizen Benefits: Senior citizens earn an additional 0.5% interest on fixed deposits.
Nomination Facility: Depositors can nominate beneficiaries for their FD investments.
Considerations When Investing in Suryoday Small Finance Bank Fixed Deposits
Interest Rate Stability: Keep in mind that FD interest rates are fixed and may not keep pace with inflation.
Fixed Returns: FDs provide fixed returns and do not benefit from potential increases in market interest rates.
Eligibility Criteria for Suryoday Small Finance Bank FDs
Suryoday Small Finance Bank welcomes the following entities to open FD accounts:
Total Administrative Service Corporations (TASC)
Limited liability companies
Sole proprietary concerns
Charitable trusts and educational institutions
Hindu Undivided Families (HUF)
Clubs, private traders, merchants, agents, professionals
Partnerships firms, societies, and corporates
Documentation Required for Suryoday Small Finance Bank FDs
To complete the mandatory Know Your Customer (KYC) procedure, the following documents are required:
Identification Proof: PAN card, driving license, passport, voter’s ID, Aadhar card, NREGA card, or government/defense ID card.
Address Proof: Aadhar card, ration card, domicile certificate with communication address issued by Municipal Corporation, NREGA card, senior citizen card issued by State/Central Government of India (if it has an address).
Two recent passport-size photographs of account holders.
2023 Interest Rates Details
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 14 days||4%||4.5%|
|15 days to 45 days||4.25%||4.75%|
|46 days to 90 days||4.5%||5%|
|91 days to 6 months||5%||5.5%|
|Above 6 months to 9 months||5.5%||6%|
|Above 9 months to less than 1 Year||6%||6.5%|
|Above 1 Year to 15 months||8.25%||8.75%|
|Above 15 months to 2 years||8.5%||9%|
|Above 2 years to 3 years||8.6%||9.1%|
|Above 3 Years to less than 5 Years||6.75%||7.25%|
|Above 5 years to 10 years||7.25%||7.75%|
Initiating a Fixed Deposit Account with Suryoday Small Finance Bank
Opening an FD with Suryoday Small Finance Bank is convenient through both online and offline modes:
Log in to the bank official website.
Navigate to “Accounts and Cards” and select “Term Deposits.”
Choose the type of FD you wish to invest in.
Complete the application form and submit it. A bank representative will guide you through the process.
Visit your nearest Suryoday Small Finance Bank branch.
Obtain and complete the FD application form, specifying the tenure, amount, and other preferences.
Submit the application with relavant documents such as Aadhar and PAN card copies. Bank officials will process your request and create the FD account.
Premature Withdrawal of FD
In the event of closing your fixed deposit account prematurely, the bank will return the principal amount and interest, subject to a penalty of 1% of the interest accrued. The applicable interest rate for premature withdrawal will be the lower of either the original tenure rate or the rate at the time of withdrawal.
Tax Implications on Suryoday Small Finance Bank FDs
Investors can seek tax deductions under Section 80C of the Income Tax Act of 1961 when investing in FDs. To avail of these benefits, taxpayers should fulfill certain conditions, including:
Investing in tax savings FDs through public or private sector banks.
Being an individual or Hindu Undivided Family (HUF) taxpayer.
Opting for the bank’s five-year tax-saving FD for Section 80C exemptions.
Understanding that loans cannot be availed against these FDs, and tax benefits in the case of joint holders are applicable to the primary account holder.
To claim tax benefits, taxpayers should provide supporting documents while filing their Income Tax Returns (ITR).
Tax Deducted at Source (TDS)
TDS is applicable to the interest earned on FDs if the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. For resident customers, the TDS deduction rate is 10% annually, provided PAN card details are submitted. In the absence of a PAN card, the bank will deduct 20% of TDS annually.
Frequently Asked Questions (FAQs)
In how many years will the FD double in Suryoday Small Finance Bank?
To estimate the time it takes for an FD to double in Suryoday Small Finance Bank, use the “Rule of 72.” Divide 72 by the interest rate. As of May 5, 2023, with the highest FD rate being 9.1%, investors can anticipate their investment to double in approximately 7.91 years. Senior citizens, with a maximum FD rate of 9.6%, can expect their FD to double in around 7.5 years.
How to check the fixed deposit balance in Suryoday Small Finance Bank?
You can check your Suryoday Small Finance Bank FD balance either online or offline. Online, log in to the bank’s internet banking portal, while offline, visit your nearest branch to update your passbook for FD balance enquiry.
Is the ₹5 lakhs DICGC insurance cover applicable to Suryoday Small Finance Bank FDs?
Yes, Suryoday Small Finance Bank FDs are covered by ₹5 lakhs of Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance.
Is there any penalty in case of premature withdrawal of FD?
Yes, a 1% penalty is applicable if you choose to prematurely close your fixed deposit account with Suryoday Small Finance Bank.
Is TDS applicable to the interest earned on the fixed deposit?
Interest earnings up to ₹40,000 (or ₹50,000 for senior citizens) in a financial year are exempt from TDS. Investors with total incomes below the taxable limit can submit Form 15G/15H when opening an FD account to avoid TDS.
What is Suryoday Small Finance Bank, and when did it start its operations?
Suryoday Small Finance Bank is a contemporary banking institution that commenced operations on January 23, 2017. It aims to cater to various segments of society, including the ‘banked,’ ‘under-banked,’ and ‘unbanked.’
Where does Suryoday Small Finance Bank have its branches?
As of now, Suryoday Small Finance Bank operates 289 branches across eight states in India.
What types of Fixed Deposits (FDs) does Suryoday Small Finance Bank offer?
Suryoday Small Finance Bank offers various FD options, including Regular Fixed Deposits, Non-Callable Fixed Deposit Scheme, and Regular Tax Saver Fixed Deposit.
Can you provide more details about the Regular Fixed Deposit offered by Suryoday Small Finance Bank?
Certainly. The Regular Fixed Deposit allows you to start with a minimum investment of ₹1,000, with flexible tenure options ranging from 7 days to 10 years. For tenures up to 6 months, interest is calculated on a simple interest basis, and interest is compounded only for reinvested FDs. You can also avail of loans against these FDs, and in the case of premature withdrawal, a penalty of 1% is applicable.
What is the Non-Callable Fixed Deposit Scheme, and what makes it unique?
The Non-Callable Fixed Deposit Scheme is designed for deposits ranging from ₹20 lakhs to ₹1.99 crores. It offers higher interest rates but does not permit premature closure, loans, or auto-renewals, making it an attractive option for long-term, high-yield investments.
Who is eligible to open an FD account with Suryoday Small Finance Bank?
Suryoday Small Finance Bank allows a wide range of entities to open FD accounts, including individuals, payment banks, corporations, educational institutions, partnerships, and more.
What are the terms for premature withdrawal of an FD with Suryoday Small Finance Bank?
If you wish to close your FD prematurely, the bank will return the principal amount and interest, subject to a 1% penalty. The applicable interest rate will be the lower of the original tenure rate or the rate at the time of withdrawal.
How do tax implications work for Suryoday Small Finance Bank FDs?
Investors can claim tax deductions under Section 80C of the Income Tax Act of 1961 when investing in tax savings FDs. It’s important to provide supporting documents when filing Income Tax Returns (ITR).
Is Tax Deducted at Source (TDS) applicable to interest earned on Suryoday Small Finance Bank FDs?
TDS applies to interest earnings exceeding ₹40,000 (₹50,000 for senior citizens) in a financial year. The TDS deduction rate is 10% annually for residents with a submitted PAN card. Without a PAN card, the bank will deduct 20% of TDS annually.