Utkarsh Small Finance Banks has revised fixed deposit (FD) interest rates across tenures (for amounts less than Rs 2 crore), with effect from July 25, 2022. The bank now offers interest rates ranging from 4 percent to 7.25 percent for regular citizens for tenures of between 7 days to 20 years after the revision.
The revised rates are applicable for fresh fixed deposits as well as for renewal of existing fixed deposits.
Interest will be calculated on a simple interest basis at maturity for term deposits with a tenure of less than 181 days, stated the bank’s website.
Following the revision, banks now offer 4% interest on terms ranging from 7 to 45 days.For tenure, 46 days to 90 days after 4.25 percent. The bank offers 5% for terms ranging from 91 days to 180 days and 6% for terms ranging from 181 days to 364 days. Utkarsh offers 6.25 percent for tenures of 5 to 10 years.
On these tenures, Utkarsh offers more than 7%.
Utkarsh Small Finance Bank offers 7.15 percent on tenures ranging from 365 days to 699 days and 700 days to 5 years.
Penalty on premature withdrawal
The penalty for early withdrawal is 1% (not applicable for closure within 7 days), which is 1% less than the card rate on the date of deposit for the time period for which the deposit was made.
According to RBI guidelines, interest on term deposits may be paid for periods shorter than a quarter (monthly pay-out) at discounted interest rates.
No interest is paid on deposits that are prematurely withdrawn within seven days of the deposit date.