Utkarsh Small Finance Bank hikes interest rates on fixed deposits: Details here

Utkarsh Small Finance Bank FD Rates

The bank has increased the interest rate from 3 percent to 4 percent on deposits maturing in 7 days and from 3.25 percent to 4.25 percent on fixed deposits maturing in 46 days. The interest rate in Utkarsh Small Finance Bank has increased from 4.25 percent to 5.00 percent on deposits maturing in 91 days to 180 days. Deposits maturing in 181 days to 364 days will now attract an interest rate of 6% as against 5.75% earlier and fixed deposits maturing in 365 days to 699 days will now attract an interest rate of 7.15% as against 6.90% earlier. Utkarsh SFB will now offer deposits maturing in five years from 700 days at the highest interest rate of 7.25 per cent, which is much higher than the retail inflation of 7.01 per cent in June. Whereas the bank will now pay interest at the rate of 6.25 percent on fixed deposits maturing in 5 to 10 years, which was 6 percent earlier.

Utkarsh Small Finance Bank on its website mentions that “For fixed deposits of less than 181 days duration, interest will be calculated on maturity on the basis of simple interest. Interest on fixed deposits can be paid for a period not less than one quarter (monthly payment) at concessional interest rates as per RBI instructions.” The bank has also stated on its website that “the penalty on premature withdrawal is 1%. (not applicable for closure within 7 days) i.e. 1% below the card rate as on the date of deposit, for the period for which the deposit has remained with the bank or 1% below the contracted rate, whichever is lower.

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