Sundaram Finance hikes interest rates on fixed deposits; offers up to 8% returns — check details and effective date

Sundaram Finance has raised fixed deposit rates from October 16, 2026. Check revised rates across different tenures. 

Non-banking financial company Sundaram Finance Limited on Thursday announced an increase in interest rates across various fixed deposit tenures, with the revised rates coming into effect from Friday, October 16, 2026.

The company has raised interest rates on one-year deposits by 30 basis points and those on two- and three-year deposits by 25 basis points. The hike will apply to both regular depositors and senior citizens.

Sundaram Finance revised FD rates

For regular depositors, the interest rate on one-year deposits has been raised from 6.70% per annum to 7% per annum, while two- and three-year deposit rates witnessed a hike of 25 basis points each.

Senior citizens will continue to earn higher rates than regular depositors, with the interest rate on three-year deposits now reaching 8% per annum.

Source: Sundaram Finance Ltd.

Sundaram Finance has a deposit base of ₹6,088 crore and holds AAA ratings with a stable outlook from credit rating agencies including ICRA and CRISIL, indicating the highest degree of safety for its deposits.

FD rate increase comes after RBI repo rate hike

Sundaram Finance's decision to raise interest rates on its fixed deposits comes after the Reserve Bank of India (RBI) on 7 October raised repo rate by 25 bps to 5.50% from 5.25%, marking the first such increase since February 2023.