Started as Micro Finance Institution (MFI) with four branches, a client base of 8000 and an outstanding portfolio of ₹6.3 crores, Utkarsh Micro Finance converted into Utkarsh Small Finance Bank. It commenced its banking operations as a small finance bank in 2017. By 2020 the deposit base crossed ₹5,000 crores and had 500 banking outlets.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 45 days||4%||4.75%|
|46 days to 90 days||4.75%||5.5%|
|91 days to 180 days||5.5%||6.25%|
|181 days to 364 days||6.5%||7.25%|
|365 days to 699 days||7.75%||8.5%|
|701 days to 5 years||7.5%||8.25%|
|Above 5 years to 10 years||7%||7.75%|
|Note: All interest rates are updated as of 18th May 2023|
Fixed Deposits (FDs) 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 know more about the types of FD that Utkarsh small finance bank offers:
Depositors can start FD with a minimum deposit of ₹1,000. The minimum tenure of FD will be 7 days, and the maximum tenure for deposit under this scheme will be 10 years. The penalty for premature withdrawal is 1%. The penalty will not apply for the closure of FD within 7 days. Senior citizens enjoy higher interest rates. Interest payment options are monthly, quarterly and at maturity.
Fixed Deposit Plus
The minimum deposit amount under this scheme is ₹15 lakhs, and the maximum deposit amount is ₹2 crore. The tenure of the deposit ranges from 7 days to 10 years. For FDs with tenure below 181 days, interest will be calculated on maturity at simple interest. The depositor can make this deposit by visiting the nearest branch. The deposits in this scheme are non-callable; hence, you cannot withdraw prematurely. However, the bank may allow premature withdrawal of these deposits in the following exceptional circumstances: in the event of any direction from any statutory or regulatory authority or deceased claim settlement cases.
Tax Saver Fixed Deposit
The depositor is entitled to claim a tax deduction of up to ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. The minimum deposit amount in this scheme is ₹1,000, and the maximum amount acceptable under this scheme is ₹1.5 lakhs per annum. The minimum duration of the deposit is 5 years, and the maximum is 10 years. Since there is a lock-in period of 5 years, premature withdrawal is not permissible. However, in case of the depositor's death, early withdrawal is permissible even during the lock-in period. The depositor cannot avail credit facility against the amount of the deposit. In the case of a joint account, only the first holder can enjoy the tax benefit. A nomination facility is available.
The following are eligible to open a fixed deposit with Utkarsh Small Finance Bank:
KYC (Know Your Customer) norms are mandatory for opening a bank account in India. The following documents are required to comply with KYC norms:
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 Utkarsh 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.
By using a Mobile App
Step 1: Download the Utkarsh 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 have 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 Utkarsh Small Finance Bank
Step 2: Ask for a Fixed Deposit Application Form and fill in all the details.
Step 3: Submit all the documentary proofs.
Step 4: Deposit the money.
Step 5: Collect the Fixed Deposit Receipt.
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:
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
The right time to invest in a fixed deposit depends on the investor's financial goals, risk appetite, and prevailing interest rates. Generally, it is advisable to invest in fixed deposits when the interest rates are high and are expected to remain stable for the investment period.
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Utkarsh Small Finance Bank FD.
If the depositor furnishes an incorrect or invalid PAN for a fixed deposit, the bank may deduct TDS (Tax Deducted at Source) at a higher rate of 20% instead of the prescribed rate of 10%.
There are no charges at the time of opening/maturity of the fixed deposit. However, there is a penalty in case of premature withdrawal. Moreover, the bank may deduct TDS at 10% if the amount of interest exceeds ₹40,000 (₹50,000 in the case of senior citizens).
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.