Utkarsh Small Finance Banks has revised fixed deposit (FD) interest rates for all tenors (for amounts less than Rs 2 crore) with effect from July 25, 2022. The bank now offers interest rates ranging from 4 per cent to 7.25 per cent for regular citizens. Tenure between 7 days to 20 years after amendment.

Revised rates are applicable for new Fixed deposit Also for renewal of existing fixed deposits.

The bank’s website states that for fixed deposits with a tenor of less than 181 days, the interest will be calculated on the basis of simple interest on maturity.

After the amendment, banks now offer 4% interest on terms ranging from 7 to 45 days. For tenure, from 46 days to 90 days after 4.25 per cent. The bank offers 5% for tenures ranging from 91 days to 180 days and 6% for tenures ranging from 181 days to 364 days. Utkarsh offers 6.25 per cent for a tenure of 5 to 10 years.

On these tenures, Utkarsh offers over 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 for 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.

As per RBI guidelines, interest on fixed deposits can be paid at concessional interest rates for a period of less than one quarter (monthly pay-out).

No interest is paid on deposits withdrawn prematurely within seven days from the date of deposit.