Equitas Small Finance Bank FD Interest Rate
Equitas Small Finance Bank is a new-aged bank. Previously it was known as Equitas Microfinance Limited. It received its licence from the Reserve Bank of India (RBI) on June 30, 2016. It is a scheduled bank whose headquarters are located in Chennai. The bank has introduced Selfe Fixed Deposit (FD), where you can open FD online in just 3 minutes without a savings bank account.
Interest Rates Chart 2023
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 - 14 days||3.5%||4%|
|15 - 29 days||3.5%||4%|
|30 - 45 days||4%||4.5%|
|46 - 62 days||4.5%||5%|
|63 - 90 days||4.5%||5%|
|91 - 120 days||5.25%||5.75%|
|121 - 180 days||5.25%||5.75%|
|181 - 210 days||6.25%||6.75%|
|211 - 270 days||6.25%||6.75%|
|271 - 364 days||6.25%||6.75%|
|Note: All interest rates are updated as of 30th Nov 2023|
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All you need to know about Equitas Small Finance Bank FD Interest RateTypes of Equitas Small Finance Bank Fixed DepositsPros of investing in Equitas Small Finance Bank fixed depositsCons of Investing in Equitas Small Finance Bank fixed depositsEquitas Small Finance Bank Fixed Deposit Eligibility CriteriaDocuments required for Equitas Small Finance Bank Deposit How to open a fixed deposit account with Equitas Small Finance Bank?Equitas Small Finance Bank Fixed Deposit Premature WithdrawalTax implications on Equitas Small Finance Bank FDHow to claim tax benefits?
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Types of Equitas Small Finance Bank Fixed Deposits
Fixed Deposits are a secured investment instrument in which a lump sum amount is deposited for a fixed tenure at a predetermined interest rate. The interest rate offered under fixed deposits is higher than in saving bank accounts. Let’s look at various fixed deposits Equitas Small Finance Bank provides.
Fixed Deposit Account
It is a great way to invest funds lying idle. They offer quarterly and monthly interest payouts. The scheme also allows the reinvestment of interest components to the deposit amount. It offers attractive interest rates of up to 9% p.a. for senior citizens for 888 days. The scheme allows full and partial premature withdrawals on FDs except those booked for monthly payout.
Further, there is no penalty for a premature withdrawal above six months. For monthly payout fixed deposits, the interest rate will be discounted on a quarterly compounding basis. A nomination facility is available.
Selfe Fixed Deposit
In this scheme, the depositor only needs an Aadhaar Number and PAN card and can book FD in just 3 minutes. The depositor need not have a savings bank account in Equitas Small Finance Bank and can deposit in FD directly through UPI from any bank account. Following are some of the features of selfe FD:
- The depositor should be a resident Indian of over 18 years of age.
- The depositor should have a valid Aadhaar card and PAN card.
- The mobile number should be linked to an Aadhaar card.
- The depositor should be a new applicant and should not have an account with Equitas Small Finance Bank.
- The maturity amount of selfe FD will be credited to the savings bank account given at the time of booking.
- The depositor has to ensure that they have not opened and, in future also, will not open OTP-based KYC in non-face-to-face mode with any other bank.
- The minimum amount of the deposit is ₹5,000, and the maximum amount of the deposit will be ₹90,000.
- The tenure of the deposit can range between 7 days to 365 days.
- Senior citizens get 0.5% extra. This does not apply to NRE/NRO.
- Partial premature withdrawal is not allowed in case of FDs booked with monthly payout.
- No penalty for premature withdrawal if the deposit has completed a tenure of 180 days.
- No penalty for premature withdrawal in case of the senior citizen selfe FD.
Pros of investing in Equitas Small Finance Bank fixed deposits
- It is flexible in choosing interest payout frequency, i.e. monthly or quarterly; it can be renewed at the end of the maturity along with the principal to continue as a fixed deposit.
- The bank allows premature withdrawal of deposits subject to penalty. In some cases, there is no penalty after withdrawal is made after the completion of specified tenure.
- Deposit Insurance and Credit Guarantee Corporation (DICGC) will grant insurance coverage for fixed deposits. The maximum amount of insurance coverage is ₹5 lakhs.
- In the case of Selfe FD, the depositor need not have a savings bank account in Equitas Bank.
- Equitas Small Finance Bank offers additional interest to senior citizens, which is 0.5% higher than normal rates for a specified tenure.
Cons of Investing in Equitas Small Finance Bank fixed deposits
- Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed-rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.
Equitas Small Finance Bank Fixed Deposit Eligibility Criteria
- All resident individuals.
- Sole proprietary concerns,
- Partnership firms,
- Limited companies,
- Societies, etc.
- Joint Hindu Families (accounts of non-trading nature only),
are eligible to make deposits with Equitas Small Finance Bank.
Note: More than one depositor cannot create Selfe FD. i.e. you cannot open a joint account in the case of selfe FD.
Documents required for Equitas Small Finance Bank Deposit
Know Your Customer (KYC) norms are mandatory for opening a bank account in India. Equitas Small Finance Bank offers selfe FD, which can be opened online using a PAN and Aadhaar card. The depositor needs to complete KYC using video KYC or by visiting the nearest branch by submitting self-attested copies of the following proofs:
- Proof of identity: PAN card, driving licence, passport, Voter ID card, Aadhaar card, Government/Defence ID card.
- Proof of residence: Aadhaar card, electricity bill, telephone bill, ration card, bank account statement, a letter from statutory authority/local body, Income Tax Order.
- Proof of date of birth: Since higher interest rates are offered to senior citizens, a document stating the date of birth, like a Passport, Voter ID card, driving licence, PAN card, or Service Discharge Certificate. In the case of pensioners, you need to submit PPO.
How to open a fixed deposit account with Equitas Small Finance Bank?
For a depositor who is an existing account holder of the bank (having Savings or Current account) Fixed Deposit can be opened using the following procedure:
By Login into Internet Banking
Step 1: Visit the Equitas Small Finance Bank website, and navigate to the “Personal Login” tab. Provide username and password to log in.
Step 2: Go to the “Fixed Deposit Tab”
Step 3: Enter all the details.
Step 4: Verify details and click confirm. A confirmation message will be displayed on the screen.
You can also open a Selfe FD account by going to Equitas Small Finance Bank’s website and Personal Tab > Save > Selfe FD > Open Selfe FD Account. You can open this account in just 3 minutes by using your Aadhaar and PAN card.
By using a Mobile App
Step 1: Download the Equitas Small Finance Bank Mobile App and log in using your credentials.
Step 2: Select the 'Open FD' option from the app's main menu.
Step 3: Choose the type of deposit account you want to open based on your preferences and requirements.
Step 4: Provide all the necessary details, including your personal information, nominee details, and payment and maturity instructions.
Step 5: After you've verified all the details, click on the 'Confirm' button to complete the transaction.
Step 6: Once the transaction is completed, you should receive a confirmation message on the screen indicating that your FD account has been opened.
Step 1: Visit the nearest branch office of Equitas Small Finance Bank.
Step 2: Complete the details by filing the Fixed Deposit Application Form.
Step 3: Submit all the documentary proofs.
Step 4: Deposit the money.
Step 5: Collect the Fixed Deposit Receipt.
Equitas Small Finance Bank Fixed Deposit Premature Withdrawal
- Equitas Small Finance Bank allows the premature withdrawal of fixed deposits. Partial premature payout is not allowed for the FDs with monthly interest payout.
- A penalty at the rate of 1% is fixed on premature withdrawals. This penalty will not be levied if the FD has completed more than 180 days of tenure. Further, This penalty does not apply to a senior citizen who is 60 years of age and above.
- Partial premature withdrawal and sweep-in facilities are not allowed for fixed deposits booked under preferential rates.
Tax implications on Equitas Small Finance Bank FD
According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
- Taxpayers can invest in FD either through public or private sector banks.
- Individuals and HUFs can avail tax deductions by investing in tax savings FDs.
- Bank's five-year tax saving FD offers exemptions under Section 80C.
- Investors cannot get loans against these FDs.
- In the case of joint holders, only the first holder can get tax benefits.
How to claim tax benefits?
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
- TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year.
- For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.
What will happen if the depositor furnishes an incorrect PAN?
TDS (Tax Deducted at Source) of 20% is applicable in such cases.
Are there charges at the time of opening/maturity of the fixed deposit?
There are no charges at the time of opening/maturity of the fixed deposit. However, there is a penalty in case of premature withdrawal, and the bank may deduct TDS at the rate of 10% if the amount of interest exceeds ₹40,000 (₹50,000 in the case of senior citizens).
Is the ₹5 lakhs DICGC insurance cover applicable on Equitas Small Finance Bank FD?
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Equitas Small Finance Bank FD.
Can a Son’s selfe FD open by bringing in funds from his Father’s Account?
No, that is not permissible.
Can Maturity Instructions be changed using the Internet or Mobile Banking?
No, you cannot change the maturity instructions.
Can depositors partially withdraw selfe FD?
No, currently, partial withdrawal from Selfe FD is not allowed.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.