Utkarsh Small Finance Bank FD Interest Rate
Updated 06 Dec 2023
Utkarsh 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 days to 45 days||4 %||4.6 %|
|46 days to 90 days||4.75 %||5.35 %|
|91 days to 180 days||5.5 %||6.1 %|
|181 days to 364 days||6.5 %||7.1 %|
|365 days to 699 days||7.75 %||8.35 %|
|700 Days to 999 Days||8 %||8.6 %|
1000 Days to 1500 Days
|8.25 %||8.85 %|
|1501 Days to upto 5 Years||7.5 %||8.1 %|
|Above 5 years to 10 years||7 %||7.6 %|
Types of Utkarsh Small Finance Bank Fixed Deposits
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.
Pros 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.
- 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.
Cons of Investing in Utkarsh 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.
Utkarsh Small Finance Bank Fixed Deposit Eligibility Criteria
The following are eligible to open a fixed deposit with Utkarsh Small Finance Bank:
- Any person in his capacity or more than one person in their joint name, any minor jointly with a guardian, can open a deposit with the Utkarsh Small Finance Bank.
- Hindu Undivided Family (HUF)
- Sole proprietorship firms
- Partnership firms
- Limited company
- Trust accounts
Documents required for Utkarsh Small Finance Bank Fixed Deposit
KYC (Know Your Customer) norms are mandatory for opening a bank account in India. The following documents are required to comply with KYC norms:
- 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, you need to submit documents stating the date of birth like a Passport, Voter ID card, driving licence, PAN card, Service Discharge Certificate, and PPO in case of a pensioner.
- In case of minors: Birth certificate issued by Gram Panchayat/ Notified Area Committee/Municipal Corporation.
- Depositor's recent passport-size photograph.
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) 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.
Overdraft against FD
- The depositor can take a loan/overdraft against the fixed deposit instead of prematurely withdrawing a fixed deposit as an alternative funding option.
- Only individual residents of India, HUF, and private and public companies are eligible.
- An overdraft can be granted up to 90% of the FD amount.
- Bank does not charge any processing fees on such overdrafts.
- You cannot avail this facility on Tax Saver Fixed Deposit.
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.
Tax implications on Utkarsh 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.
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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