North East Small Finance Bank FD Interest Rate
Updated 06 Dec 2023
North East Small Finance Bank Fixed Deposit Interest RatesNote: All interest rates are updated as of 30 Nov 2023
|Tenure||For General Citizen (p.a)||For Senior Citizen (p.a)|
|7 - 14 Days||3 %||3.75 %|
|15 - 29 Days||3 %||3.75 %|
|30 - 45 Days||3.5 %||4.25 %|
|46 - 90 Days||4.5 %||5.25 %|
|91 - 180 Days||4.75 %||5.5 %|
|181 - 365 Days||6.5 %||7.25 %|
|366 - 1095 Days||7.25 %||8 %|
555 days- Special Scheme
|8.5 %||9.25 %|
|1111 Days- Special Scheme||8.5 %||9.25 %|
|1096 - 1825 Days||6.5 %||7.25 %|
|1826 - 3650 Days||6.25 %||7 %|
Types of FDs by North East Small Finance Bank
A fixed deposit is an account where an investor can keep money in the bank, earning a percentage of interest at the end of the specified term period. North East Small Finance Bank’s FD comes with an interest rate between 3-8% p.a. for the general public and 3.75-8.75% p.a. for senior citizens. Let's look at some of its features:
- The minimum amount of investment is ₹1,000.
- The tenure ranges between 7 days to 10 years.
- The auto-renewal facility is available.
- A loan or overdraft facility on FD is available to investors.
- Investors can opt for premature closure or premature withdrawal.
- Liberal payouts can be made on a monthly or quarterly basis.
- Reinvestment options are available.
- A penalty of 1% is applicable on early withdrawal or closure.
Pros of investing in North East Small Finance Bank Fixed Deposits
- Premature withdrawal: The tenure of the FD with North East Small Finance Bank ranges from 7 days to 10 years. You cannot change the tenure once the investment starts. However, an investor can opt for premature withdrawal.
- Convenient: Having a savings account in North East Small Finance Bank allows you to open fixed deposits easily, and they can be liquidated whenever required.
- Minimum amount: Fixed deposits with North East Small Finance Bank can be opened with an investment as low as ₹1,000.
- Liberal payout: North East Small Finance Bank FD provides monthly or quarterly interest payout options.
- Auto-renewal option: The Bank offers an auto-renewal option for their FDs. It means at the time of maturity of the FD, it gets renewed automatically.
- Loan against FD: North East Small Finance Bank allows investors to take loans against their FDs.
- DICGC insurance: Deposit Insurance and Credit Guarantee Corporation (DICGC) covers the amount invested with the bank for the total sum of ₹5 lakhs.
- Nomination facility: Depositors can nominate beneficiaries for their North East Small Finance Bank FDs investments.
Cons of investing in North East Small Finance Bank Fixed Deposit
- 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.
Eligibility Criteria to Open a Fixed Deposit with North East Small Finance Bank
To invest in North East Small Finance Bank Fixed Deposits, the following are eligible:
- Any individual,
- Hindu Undivided Family (HUF),
- Partnership firms,
- Associations, trusts, societies and clubs,
Documents Required to Open a North East Small Finance Bank Fixed Deposit
The following documents are required to invest in North East Small Finance Bank Fixed deposits:
|Eligible people||Documents required|
Certificate of incorporation
ID proofs of authorized signatories
Passport size photographs of directors
Memorandum of Association
|Individuals, HUF, Proprietorships|
Passport size photographs
Passport size photographs of partners Letter from partners to open and operate the account
|Associations and Clubs|
Passport size photographs
Board Resolution to open and operate the account
Trust deed copy
Copy of Certificate of Registration
Passport size photographs of the members
Authorizing the members concerned to open and operate the account
How To Open A FD Account with North East Small Finance Bank?
You can open an FD account with North East Small Finance Bank offline. The following are the steps:
Step 1: Personally visit the nearest bank branch.
Step 2: Fill out the required FD form.
Step 3: Give complete details such as deposit amount, tenure, etc.
Step 4: Attach the required documents such as PAN, photographs etc.
Step 5: Make the payment through cheque, DD or online banking.
Step 6: The banker will verify the details filled out and will proceed further.
Step 7: Obtain the acknowledgement slip of the FD account.
North East Small Finance Bank Fixed Deposit Premature Withdrawal
- North East Small Finance Bank allows premature withdrawal of FDs.
- The Bank levies a 1% penalty on the interest for all premature withdrawals.
Tax implications on North East 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 is the highest interest rate on North East Small Finance Bank’s FD?
Currently, the highest interest rate for North East Small Finance Bank’s FD for regular citizens is 8% for 1111 days of maturity. And for senior citizens, it is 8.75%.
Is the ₹5 lakhs DICGC insurance cover applicable on North East Small Finance Bank FD?
Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover applies to North East Small Finance Bank FD.
How to deposit the FD amount?
FD amount can be deposited through various modes such as cheques, DD, credit/debit cards, internet banking etc.
Does the North East Small Finance Bank’s staff get an additional interest rate on the FDs?
Yes, North East Small Finance Bank's staff gets an additional interest rate on the FDs.
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