Suryoday Small Finance Bank leads with 8.6% 5-year senior FDs

Business Nov 07, 2026

If your parents or grandparents are looking for better returns on their savings, some small finance banks now offer FDs with interest rates as high as 8.6% for five years.

Suryoday Small Finance Bank leads the pack, while Jana Small Finance Bank is not far behind at 8%.

These rates apply for deposits up to ₹3 crore, making them a solid option for seniors who want more from their money.

FD interest over ₹1L, DICGC ₹5L

There is a tax angle too: if FD interest crosses ₹1 lakh in a year, tax deducted at source (TDS) kicks in, but seniors can avoid this by submitting Form 121 if they do not owe any tax overall.

Plus, deposits in these banks are insured by DICGC up to ₹5 lakh, giving some extra peace of mind about safety along with those higher returns.