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Utkarsh Small Finance Bank Fixed Deposit

Updated 06 Dec 2023

Every financial journey is unique, and having a secure, trustworthy, and rewarding partner can make a significant difference. Regarding stability and returns, fixed deposits with Utkarsh Small Finance Bank seem to be a promising choice.

Launched as a microfinance institution, Utkarsh has come a long way and now offers various financial solutions, including an array of fixed deposit schemes. Let's delve deeper into understanding these offerings.

Types of FDs in Utkarsh Small Finance Bank

  • Fixed Deposit
  • Fixed Deposit Plus
  • Tax Saver Fixed Deposit

Benefits of Investing in Utkarsh Small Finance Bank Fixed Deposits

  • Depositors have the flexibility to choose interest payout frequency: monthly or quarterly.
  • The bank allows premature withdrawal of deposits subject to penalty. However, if a customer opts for premature withdrawal within 7 days of depositing the money, then no penalty is charged. 
  • If the depositor does not want to withdraw a fixed deposit prematurely, they can also consider taking a loan/overdraft against fixed deposits as an alternative funding option. This option does not apply to Tax Saver Fixed Deposits.
  • Deposit Insurance and Credit Guarantee Corporation (DICGC) will grant insurance coverage for fixed deposits in Utkarsh Small Finance Bank. The maximum amount of insurance coverage is ₹5 lakhs.
  • Depositors can invest in Tax Saver Fixed Deposit and claim deductions of up to ₹1.5 lakhs under section 80C of the Income Tax Act of 1961. However, there is a lock-in period of 5 years.
  • One can easily make a fixed deposit by using internet banking.
    They offer additional interest to senior citizens, which is higher than rates offered to regular citizens for a specified tenure.

Features of Utkarsh Small Finance Bank FDs

Fixed Deposit

  • Minimum deposit of ₹1,000.
  • Tenure ranging from 7 days to 10 years.
  • Premature withdrawal penalty of 1% (waived off for closure within 7 days).
  • Senior citizens get a higher interest rate.
  • Interest payout options include monthly, quarterly, and at maturity.
  • Based on the tenor the interest rate for these schemes range from 4.00% to 8.3% for the general public and 4.6% to 8.9% for senior citizens.


Fixed Deposit Plus

  • Minimum deposit is ₹15 lakhs, maximum being ₹2 crore.
  • Tenure can be from 7 days up to 10 years.
  • Interest for FDs under 181 days is calculated at simple interest at maturity.
  • Deposits are non-callable.
  • Exceptional cases for premature withdrawal include regulatory directions or deceased claim settlements.
  • Based on the tenor the interest rate for these schemes range from 4.00% to 8.3% for the general public and 4.6% to 8.9% for senior citizens.

 

Tax Saver Fixed Deposit

  • Offers tax deductions up to ₹1.5 lakhs under section 80C of the Income Tax Act, 1961.
  • Deposit range is from ₹1,000 to ₹1.5 lakhs annually.
  • Duration is 5-10 years with a lock-in period of 5 years.
  • Premature withdrawal is prohibited unless the depositor passes away.
  • Credit facilities against the deposit aren't available.
  • Only the first holder in a joint account can claim tax benefits.
  • Based on the tenor the interest rate for these schemes range from 4.00% to 8.3% for the general public and 4.6% to 8.9% for senior citizens. 

Eligibility Criteria

  • Any individual or multiple persons in joint names.
  • Minors jointly with a guardian.
  • Hindu Undivided Family (HUF).
  • Sole proprietorship firms.
  • Partnership firms.
  • Limited company.
  • Trust accounts.

Documents Required

Identity proofs:

  • PAN card
  • Driving licence
  • Passport
  • Voter ID card
  • Aadhaar card
  • Government/Defence ID card

Address proofs:

  • Aadhaar card
  • Electricity bill
  • Telephone bill
  • Ration card
  • Bank account statement
  • Letter from statutory authority/local body
  • Income Tax Order

How to open a fixed deposit account with Utkarsh Small Finance Bank?

For a depositor who is an existing account holder of the bank (having savings or current account), a 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.

Offline Mode


Step 1: Visit the nearest branch office of Utkarsh Small Finance Bank
Step 2: Complete the details by asking for a Fixed Deposit Application Form.
Step 3: Submit all the documentary proofs. 
Step 4: Deposit the money.
Step 5: Collect the Fixed Deposit Receipt.

Utkarsh Small Finance Bank Fixed Deposit Premature Withdrawal

  • Apart from Tax Saver Fixed Deposit, Utkarsh Small Finance Bank allows premature withdrawal of all FDs. 
  • The penalty for premature withdrawal in such cases is 1% (not applicable for closure within 7 days). This means that 1% less than the card rate as of the date of deposit for the period for which the deposit has remained with the Bank or 1% less than the contracted rate, whichever is lower.

FAQs

  • When is the right time to invest in a fixed deposit?
     

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.

  • Is the ₹5 lakhs DICGC insurance cover applicable on Utkarsh Small Finance Bank FD?
     

Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Utkarsh Small Finance Bank FD.
 

  • What will happen if the depositor furnishes an incorrect PAN?
     

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%. 
 

  • 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. Moreover, the bank may deduct TDS at 10% if the amount of interest exceeds ₹40,000 (₹50,000 in the case of senior citizens).
 

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Utkarsh Small Finance Bank

Calculate Utkarsh Small Finance Bank FD Returns

₹1,00,000
6%
365
days
daysmonthsyears
Maturity Amount₹1,06,000

Understanding Fixed Deposit

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