Utkarsh Small Finance Bank Fixed Deposit

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.

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

• 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.

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. 

• 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.

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

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.

• 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.