Dear readers in this article we will provide Utkarsh Small Finance Bank FD Rates, and other details. Utkarsh Small Finance Bank, formerly known as Utkarsh Micro Finance, has come a long way since its inception as a Micro Finance Institution (MFI) with just four branches, 8000 clients, and an outstanding portfolio of ₹6.3 crores.
In 2017, it transformed into Utkarsh Small Finance Bank and commenced full-fledged banking operations. By 2020, it had amassed a deposit base exceeding ₹5,000 crores and boasted 500 banking outlets.
UTKARSH SMALL FINANCE BANK FD RATES CHART
Here are the interest rates offered by Utkarsh Small Finance Bank for Fixed Deposits (FDs)
UTKARSH SMALL FINANCE BANK FD RATES GENERAL CITIZEN
| Tenure | For General Citizens (p.a.) |
|---|---|
| 7 days to 45 days | 4% |
| 46 days to 90 days | 4.75% |
| 91 days to 180 days | 5.50% |
| 181 days to 364 days | 6.50% |
| 365 days to 699 days | 7.75% |
| 700 Days to 999 Days | 8% |
| 1000 Days to 1500 Days | 8.25% |
| 1501 Days to upto 5 Years | 7.50% |
| Above 5 years to 10 years | 7% |
UTKARSH SMALL FINANCE BANK FD RATES SENIOR CITIZEN
| Tenure | For Senior Citizens (p.a) |
|---|---|
| 7 days to 45 days | 4.60% |
| 46 days to 90 days | 5.35% |
| 91 days to 180 days | 6.10% |
| 181 days to 364 days | 7.10% |
| 365 days to 699 days | 8.35% |
| 700 Days to 999 Days | 8.60% |
| 1000 Days to 1500 Days | 8.85% |
| 1501 Days to upto 5 Years | 8.10% |
| Above 5 years to 10 years | 7.60% |
TYPES OF UTKARSH SMALL FINANCE BANK FIXED DEPOSITS
Utkarsh Small Finance Bank offers various types of Fixed Deposits (FDs) to cater to different investment needs:
Fixed Deposit:
Minimum deposit of ₹1,000, with tenures ranging from 7 days to 10 years. A penalty of 1% applies to premature withdrawals, except within the first 7 days. Senior citizens enjoy higher interest rates, and interest can be paid out monthly, quarterly, or at maturity.
Fixed Deposit Plus:
Requires a minimum deposit of ₹15 lakhs and offers tenures from 7 days to 10 years. Interest is calculated on maturity at simple interest for FDs with tenures below 181 days. Premature withdrawals are not allowed, except in exceptional circumstances defined by regulatory authorities or in deceased claim settlement cases.
Tax Saver Fixed Deposit:
Investors can claim tax deductions of up to ₹1.5 lakhs under Section 80C of the Income Tax Act of 1961. Minimum deposit is ₹1,000, and the maximum is ₹1.5 lakhs per annum. Tenures range from 5 to 10 years, with no premature withdrawal allowed except in the event of the depositor’s death.
The tax benefit is available to the first holder in the case of a joint account, and a nomination facility is provided.
ADVANTAGES OF INVESTING IN UTKARSH SMALL FINANCE BANK FIXED DEPOSITS
Flexible interest pay out options: Depositors can choose to receive interest either monthly or quarterly.
Premature withdrawal allowed with a penalty.
Option to avail loans/overdraft against FDs (excluding Tax Saver Fixed Deposits).
 Deposits are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakhs.
Tax benefits under Section 80C for Tax Saver Fixed Deposits (lock in period of 5 years).
Convenient online FD creation using internet banking.
 Senior citizens receive higher interest rates compared to regular citizens for specific tenures.
DISADVANTAGES OF INVESTING IN UTKARSH SMALL FINANCE BANK FIXED DEPOSITS
Fixed interest rates that do not adjust to market fluctuations, potentially not keeping pace with inflation.
Lack of flexibility in benefiting from higher returns if market interest rates increase.
Utkarsh Small Finance Bank Fixed Deposit Eligibility Criteria
THE FOLLOWING ENTITIES ARE ELIGIBLE TO OPEN FDS WITH UTKARSH SMALL FINANCE BANK
 Individuals, singly or jointly, including minors with guardians.
 Hindu Undivided Families (HUFs).
 Sole proprietorship firms.
 Partnership firms.
 Limited companies.
 Trust accounts.
REQUIRED DOCUMENTS FOR UTKARSH SMALL FINANCE BANK FIXED DEPOSIT
To comply with Know Your Customer (KYC) norms, the following documents are required:
 Proof of identity (e.g., PAN card, driving license, passport, voter ID, Aadhaar card).
 Proof of residence (e.g., Aadhaar card, electricity bill, telephone bill, ration card, bank account statement, government/defiance ID).
 Proof of date of birth (relevant for senior citizens; e.g., passport, voter ID, driving license, PAN card).
 Birth certificate for minors.
 Recent passport size photograph of the depositor.
HOW TO OPEN A FIXED DEPOSIT ACCOUNT WITH UTKARSH SMALL FINANCE BANK
Existing account holders of the bank (having savings or current accounts) can open FDs through various methods:
Internet Banking: Log in to your internet banking account, navigate to the Fixed Deposit tab, enter details, verify, and confirm.
 Mobile App: Download the Utkarsh Small Finance Bank Mobile App, log in, select
Open FD, provide details, and confirm.
Offline: Visit the nearest bank branch, fill out a Fixed Deposit Application Form, submit documents, deposit funds, and collect the Fixed Deposit Receipt.
OVERDRAFT AGAINST FD
Depositors can opt for a loan or overdraft against their FD instead of premature withdrawal. This option is available to individual residents of India, HUFs, private and public companies.
Overdrafts can be granted up to 90% of the FD amount.
The bank does not charge processing fees for such overdrafts.
This facility is not applicable to Tax Saver Fixed Deposits.
UTKARSH SMALL FINANCE BANK FIXED DEPOSIT PREMATURE WITHDRAWAL
Premature withdrawal is allowed for all FDs except Tax Saver Fixed Deposits.
A penalty of 1% applies to premature withdrawals, except within the first 7 days. The penalty is calculated as 1% less than the card rate or 1% less than the contracted rate, whichever is lower.
TAX IMPLICATIONS ON UTKARSH SMALL FINANCE BANK FD
Taxpayers can claim deductions under Section 80C of the Income Tax Act of 1961 for investments in FDs.
 The maximum deduction is ₹1.5 lakhs from the gross taxable income in a financial year.
 Tax saving FDs with a lock in period of 5 years are eligible for this deduction.
 Supporting documents must be provided when filing Income Tax Returns (ITR).
TAX DEDUCTED AT SOURCE (TDS)
TDS is deducted from FD interest if it exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
For resident customers, TDS is 10% if PAN card details are provided; otherwise, it is 20%.
FAQS
- When is the right time to invest in a fixed deposit?
The right time to invest in an FD depends on financial goals, risk tolerance, and prevailing interest rates. Generally, higher rates may make FDs more attractive.
- Is the ₹5 lakhs DICGC insurance cover applicable on Utkarsh Small Finance Bank FD?
Yes, FDs with Utkarsh Small Finance Bank are covered by ₹5 lakhs DICGC insurance.
- What happens if the depositor provides an incorrect PAN?
 If an incorrect or invalid PAN is provided for an FD, the bank may deduct TDS at a higher rate of 20% instead of the prescribed 10%.
Please note that the details provided here are as of August 1, 2023, and may be subject to change. It’s advisable to verify the latest information with the bank before making any investment decisions.