Considering COVID-19 we have taken precautionary steps demanded by the situation. Our branches will be open, with required hygiene measures and reduced staff.
Revision in Savings Account Interest rates effective April 01, 2022
Customer Compensation and Protection Policy limiting the liability of customers in unauthorized electronic transactions is available under Bank Policies section for perusal of customers.
Our Avinashi branch located at The Utkarsh BANK Ltd. Shop No 5/215 Rajan Nagar Opp to weekly Market, K K Pudur post Avinashi Taluk, Tirupur - 641654, will be closed w.e.f April 30, 2022. It is being merged with our Tirupur branch.
Considering COVID-19 we have taken precautionary steps demanded by the situation. Our branches will be open, with required hygiene measures and reduced staff.
Revision in Savings Account Interest rates effective April 01, 2022
Customer Compensation and Protection Policy limiting the liability of customers in unauthorized electronic transactions is available under Bank Policies section for perusal of customers.
Our Avinashi branch located at The Utkarsh BANK Ltd. Shop No 5/215 Rajan Nagar Opp to weekly Market, K K Pudur post Avinashi Taluk, Tirupur - 641654, will be closed w.e.f April 30, 2022. It is being merged with our Tirupur branch.
In Fixed Deposit
Date 08 Apr,2025
In a country where fiscal responsibility is an integral part of cultural values, Fixed Deposits (FDs) have been a staple of Indian family savings for generations. As per latest statistics from the Reserve Bank of India, Fixed Deposits contribute to around 55% of bank deposits in India, which speaks volumes about the unshakeable faith Indians have in this age-old investment option. This has been so even as the financial environment has changed so much over the decades.*
The digital revolution has only served to further cement this connection between Indians and their favorite savings vehicle. With the world of online banking, a process that previously was multiple trips to bank offices and cumbersome documentation can now be completed with the push of a few buttons. Today, opening a Fixed Deposit account takes less than five minutes, and money is utilized instantly – an ease that has boosted FD uptake by almost 28% in the past three years alone.
What Are Fixed Deposits?
Essentially, Fixed Deposits are a promise between your bank and you. You promise to deposit your money with the bank for a certain amount of time, and the bank guarantees a fixed interest rate for this duration. Such assuredness and predictability have led to FDs being the first choice for cautious investors wanting safety in their portfolio.
Fixed Deposits are based on a simple principle: the longer you hold back your funds, the greater the rate of interest you typically get. This design favors conservative investors while offering banks the stability they require for lending purposes. In contrast to market-linked investments, FDs protect your principal from market fluctuations, and what you anticipate is precisely what you get at maturity.
The Unique Advantage of Small Finance Banks
Though Fixed Deposits in themselves provide fantastic advantages, investing with Small Finance Banks such as Utkarsh Small Finance Bank (Utkarsh SFB) increases these benefits significantly. Small Finance Banks have a special banking license with the sole purpose of providing banking facilities to underserved sectors. This special placement has practical advantages for depositors.
Utkarsh SFB, specifically, has become a name to be reckoned with in this space. With the vision of financial inclusion, Utkarsh SFB offers the security of a regulated bank coupled with the customer focus of a smaller entity. This dual approach translates into a number of unique benefits for Fixed Deposit account holders.
Better Interest Rates: The Compelling Proposition
There might be no greater incentive to avail yourself of a Fixed Deposit account with Utkarsh SFB than that of the differential interest rate benefit. Small Finance Banks such as Utkarsh SFB generally provide marginally higher rates of interest as compared to normal commercial banks, ranging between 1-2%. This variance may appear very small at surface level, yet when compounded along longer tenor periods, that difference makes very substantial returns on your investment.
For example, a ₹1,00,000 five-year deposit at 8.00%* (which is a usual rate at Utkarsh SFB) compared to 6.00-7.00% (typical of major banks) would earn around ₹16,000 extra in interest. Such better returns are extremely useful in the current economic environment where passive income maximization has become even more crucial.
Safety and Regulatory Oversight
While looking for greater returns, responsible investors never compromise on safety. Utkarsh Small Finance Bank is subject to the same regulatory regime as it is scheduled commercial bank as well regulated by RBI. Deposits at Utkarsh SFB are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakhs per depositor – the same protection as that of larger banking entities.
In addition, Utkarsh SFB has capital adequacy ratios much higher than the minimum regulatory requirements, which indicates the financial stability of the institution and depositor safety. Such strong regulatory compliance ensures that your investments have the double advantage of higher returns without further exposure to risk.
Flexibility and Customization Options
Utkarsh SFB understands that financial requirements are quite different among customers. Keeping this in view, they present a varied selection of Fixed Deposit products catering to different financial goals and needs. Whether saving for short-term targets or saving for long-term financial goals, Utkarsh SFB has the right options to suit.
Their range of products includes standard Fixed Deposits with tenures between 7 days and 10 years, enabling accurate synchronization with your financial calendar. For individuals requiring regular income, the bank has Monthly Income Schemes in which interest is paid at monthly intervals. Senior citizens are given preferential rates on Fixed Deposit Plus – up to 9.10%*, recognizing their special financial requirements during retirement life.
Digital Convenience Without Compromising Service Quality
In line with modern-day expectations, Utkarsh SFB has made considerable investments in creating strong digital infrastructure. Their user-friendly online and mobile banking facilities allow customers to open, operate, and renew Fixed Deposits without the need to visit branches. The paperless process is eco-friendly while being time-saving.
What sets Utkarsh SFB apart in the digital banking space is that they believe in keeping the human touch. While technology takes care of the transactions, their customer service officials are always available for assistance and advice. This is done by striking a balance so that technological progress reinforces but does not eliminate the individualized banking experience.
Tax Efficiency Considerations
Fixed Deposits with Utkarsh SFB also provide tax optimization opportunities. Although interest earned is subject to tax, strategic planning can reduce the tax burden. For example, availing the provisions of Form 15G/15H (for individuals below taxable income limits and senior citizens, respectively) can avoid TDS deductions on interest income.
In addition, Utkarsh SFB has Tax Saver Fixed Deposits under Section 80C of the Income Tax Act, which are special offerings. The deposits, which are required to be locked in for a minimum of five years, allow the investors to lower their taxable income up to ₹1.5 lakhs while building their savings corpus at the same time.
Conclusion: A Prudent Choice for Discerning Investors
As we find ourselves moving into a more complex financial environment, the long-standing popularity of Fixed Deposits with Small Finance Banks such as Utkarsh SFB is clear. They are the ideal combination of old-world security and new-world benefit – providing better returns without sacrificing safety or ease.
For investors interested in maximizing savings strategy with minimal risk, the Fixed Deposit offers of Utkarsh Small Finance Bank should be taken into consideration. These are the very best of two worlds – stability that has perennially made the Fixed Deposit such a popular offering among Indian savers and extra benefits that derive from selecting the services of an expert banking solutions provider dedicated to customer value.
Documents needed for opening savings account with zero balance in India | Utkarsh Small Finance Bank
Read moreUnlocking Your Dream Home: A Step-by-Step Guide for First-Time Buyers with Utkarsh Small Finance Bank
Read moreHow to Open a Current Account in India: A Comprehensive Guide with Utkarsh Small Finance Bank
Read moreSmall Finance Banks Revolutionizing Financial Inclusion in India
Read moreThe Advantages of Fixed Deposits in Small Finance Banks
Read moreYou are never too far away from quick banking, check nearest Bank and ATM
Incase you wish to speak to our banking experts for resolution
Whether it be a simple suggestion or feedback or an inquiry.