Utkarsh Small Finance Bank FD Rates – Buddy Loan Official Blog

In
the realm of investments and savings, Fixed
Deposits (FDs) play a major role. A lump sum is invested for assured
returns and long-term growth. Among the myriad of options available, Utkarsh Small Finance Bank stands out
as one of the best banks for FDs. Its attractive FD rates and flexibility make
it a great option for saving enthusiasts.

In this
guide, we’ll take you on a journey to understand Utkarsh Small Finance Bank’s FD rates, its various FD schemes, and
how it differs from its competitors.

Utkarsh FD Rate Table

Utkarsh Small Finance Bank’s FD rates are unique
because they are determined by the bank’s specific financial policies and
market positioning. Like other banks, the bank sets its FD rates independently
to attract deposits and remain competitive.

Let’s take a quick glance at the numbers that truly
matter i.e., Utkarsh FD interest rates
and its tenure. The interest rates offered to general and senior citizens for
deposits under INR 2 crore as of August 21, 2023, are discussed in the table
below.

Note: The interest rates are subject to change based on the market conditions. <H2> Types Of Utkarsh Fixed Deposit Schemes

Utkarsh Bank FD schemes are curated for different
needs and preferences. Here are the 3 different FD schemes and their features:

1. Regular FD
2. Fixed Deposit Plus
3. Tax Saver FD

1. Regular Fixed Deposits

Regular fixed deposit is one of the most common
types of FD schemes. Some of its features are:

• The
  minimum deposit is ₹1,000 with a tenure ranging from 7 days to 10 years.
• For deposits that mature in less
  than 181 days, the interest is calculated as simple interest.
• For deposits that mature in 181
  days or longer, compounding options are available.
• Senior citizen interest rates are
  0.5% more than standard FD interest rates.
• The interest rate is fixed for the
  entire tenure of the deposit.

2. Fixed Deposit Plus (No Premature withdrawal facility)

For investors who want to earn a greater interest
rate on their FDs, the Fixed Deposit Plus programme is a smart choice. Some of
the benefits of Utkarsh bank FD Plus
rates are:

• The minimum deposit is over Rs. 15
  lakh & maximum deposit is under Rs. 2 crore with a tenure of 7 days to 10
  years.
• Senior citizens receive an
  additional 0.75% interest rate on top of the standard FD interest rate.
• Depositors have the choice of
  quarterly payouts or discounted monthly payouts.
• Simple interest will be applied
  for FDs with a tenure of less than 181 days on maturity.
• This scheme does allow for
  premature withdrawals.

3. Tax Saver Fixed Deposit

As the name suggests, Tax Saver Fixed Deposit is a
scheme crafted for tax-conscious people. The benefits include:

• Under Section 80C of the Income
  Tax Act, tax can be deducted up to Rs. 1.5 lakh every fiscal year.
• The deposit amount ranges from Rs
  1,000 to Rs 1.5 lakhs.
• There is a 5-year lock-in period
  and a deposit tenure.
• Senior citizens are eligible for a
  0.50–0.75% higher interest rate.
• There are monthly and quarterly
  payout choices at discounted rates.
• Auto-renewal, premature/partial
  withdrawal, and loan/overdraft facilities are not offered.
• A nomination facility is
  available.

Term-wise Utkarsh Bank Fixed Deposit Rates

Utkarsh Small Finance Bank FD Rates can
be divided into three types based on tenure; short-term, medium-term, and
long-term fixed deposits.

• Short-term deposits have a tenure of 7
  days to less than 12 months. The interest offered for this tenure ranges from
  4.00% p.a. to 6.50% p.a. for general citizens and from 4.75% p.a. to 8.35% p.a.
  for senior citizens.
• Medium-term deposits
  range from 1 year to less than 5 years. The interest offered ranges from
  8.00% p.a. to 8.50% p.a. for general citizens and from 8.60% p.a. to 8.85% p.a.
  for senior citizens.
• Long-term deposits have tenures that
  range from 60 months to 10 years and have an interest rate of 7.00% p.a. for
  general citizens and 7.60% p.a. for senior citizens.

Your returns are significantly influenced
by the FD tenure you choose. Longer-term Utkarsh bank FDs frequently provide
attractive interest rates. It’s important to select a tenure that fits with
your financial objectives and timeframe.

Features and Benefits of Utkarsh Bank FD’s

The advantages and features of Utkarsh FD schemes
are as follows:

• Fixed interest rate: Your interest rate will remain
  constant for the entire tenure of the deposit.
• Safety: Your money remains safe and
  secured in case the bank fails.
• Tax benefits: You can save taxes on interest
  collected from your FDs.
• Flexibility: You have a range of tenure
  options to choose for your investment that fits your financial goals.
• Convenience: You may open an FD at any Utkarsh
  Bank branch or online.
• Premature Withdrawal: The premature withdrawal penalty
  is 1% if withdrawal is done within seven days of investment.

Utkarsh Small Finance Bank Vs Other Banks’ FD Rates

Before making a decision, it is wise to compare FD
rates. Although the FD rates of Utkarsh
Small Finance Bank remain stable, it is a good idea to look at other banks
as well.

Note: The interest rates of the
banks are subject to change.

It is usually preferable to check the most recent
rates before investing because the interest rates provided by the banks can
change any time.

Premature Withdrawal Of Utkarsh Fixed Deposits

Like other banks, Utkarsh Bank allows for premature
withdrawals but with a penalty. The penalty depends on the tenure of the FD and
the amount withdrawn.

In case of withdrawal of FD within 7 days of
investment, a 1% penalty of the amount withdrawn is applicable. If it’s after 7
days but before 1 year, then one has to pay 3 months’ interest as a
penalty.  

The following situations qualify for an exemption
from the early withdrawal penalty:

• Death of the account holder
• Closure of the bank
• Premature closure of the FD due to natural disaster
• Maturity of the FD
• Permanent disability of the
  account holder

In the case of Utkarsh fixed deposit plus, there is
no premature withdrawal facility.

Summing It Up

Utkarsh Small Finance Bank’s FD rates open the
doorway to secure growth for your hard-earned money. It provides a promising
path whether you’re looking to create a financial safety net, fund your dreams,
or prepare for retirement. However, like any financial decision, careful
evaluation is the key. Assess your goals, seek guidance from an expert if
necessary, and let the FD rates of Utkarsh Small Finance Bank help you progress
towards a future enriched with financial stability and prosperity.

Frequently Asked Questions

Q. What is the interest rate of FD in Utkarsh?
A.  The new FD rate in Utkarsh is 7.5% for 5 years for the general public and 8.1% for senior citizens.

Q. Is Utkarsh Small Finance Bank safe for FD?
A. Yes, Utkarsh Small Finance Bank is safe for FD as it is a scheduled commercial bank regulated by the RBI.

Q. Is Utkarsh a government bank?
A. Utkarsh is not a government bank, it’s a private bank.

Q. Is it good to invest in Utkarsh Small Finance Bank?
A. Yes, It is good to invest in Utkarsh Small Finance Bank as it offers competitive FD rates.

Q. Is Utkarsh bank good or bad?
A. Utkarsh Bank is a reliable choice for investors looking for competitive FD rates.

Q. Is Utkarsh bank approved by the RBI?
A.  Yes, Utkarsh Bank is approved by the RBI.

Q. How old is Utkarsh bank?
A.  The Bank commenced its operations on January 23, 2017.

Q. What is the minimum balance in Utkarsh bank?
A. The minimum balance in Utkarsh Bank is ₹500 for the savings account and ₹2,000 for the fixed deposit account.