All banks, small and large ones, have revised upwards their fixed deposit rates and recurring deposit rates to attract more deposits from customers amid a high interest rate regime in the wake multiple repo rate hikes by the Reserve Bank over the last seven months.
One such bank is Utkarsh Small Finance Bank (SFB), which has made interest rate revisions on fixed deposits of less than Rs 2 crore. The new rates are effective from November 1, 2022.
Utkarsh SFB FD Rates
It offers fixed deposits with maturities ranging from 7 days to 10 years with interest rates in the range of 4 percent to 8 percent for the general public and 4.75 percent to 8.75 percent for senior citizens.
Penalty on premature withdrawal
According to the lender, “Penalty on premature withdrawal Penalty on premature withdrawal is 1 percent (not applicable for closure within 7 days) i.e. 1 percent less than the card rate as on the date of deposit, for the period for which the deposit has remained with the Bank or 1 percent less than the contracted rate, whichever is lower.”
Utkarsh SFB RD Rates
The bank is now offering interest rates on recurring deposits between 6.50 percent to 8 percent for regular citizens and 7 percent to 8.50 percent to senior citizens with maturities of six months to ten years. ON recurring deposits, no interest will be given to the customer for premature closure of recurring deposits within a month; only the principal will be reimbursed. If the closure occurs within a month, there will be no early withdrawal penalty.
Difference between RDs and FDs:
In FDs, the amount is deposited lump sum in one go initially. However, in a RDs, the amount is deposited at regular frequency i.e. in a recurring nature.
