Utkarsh Small Finance Bank FD Scheme

Utkarsh Small Finance Bank is a scheduled commercial bank regulated by the RBI. The bank started its operations on January 23, 2017, and became popular among fixed-income investors due to its competitive interest rates. 

As of August 6, 2025, Utkarsh Small Finance Bank’s peak general customer rates are 7.25% on Tax Saver FD, 7.90% on FD Plus scheme (₹1 crore to ₹3 crore), and 7.65% on regular domestic FDs. Senior citizens earn an additional 0.50% on each FD category.

Want to know the latest fixed deposit schemes in Utkarsh Small Finance Bank? In this article, you will check out the various Utkarsh Small Finance Bank FD plans and their key features. Lastly, you will understand is Utkarsh bank FD safe.

What are the Different Fixed Deposit Schemes in Utkarsh Small Finance Bank?

Utkarsh Small Finance Bank offers different types of Fixed Deposit (FD) plans to suit various investor needs, such as short-term, long-term, or to get tax benefits. Each FD plan comes with its own features, like:

• Interest rates
• Lock-in periods
• Payout options

For more clarity, check out the various fixed deposit schemes in Utkarsh Small Finance Bank below:

A) Utkarsh Small Finance Bank FD Plans for Regular Investors

To regular investors below the age of 60 years, Utkarsh Small Finance Bank FD plans offer interest rates going up to 7.65% per annum (as of August 6, 2025) for regular investors for a tenure of 2 Years (730 Days) and up to 3 Years (1095 Days). 

The payouts are highly flexible, and you can even close the FDs before maturity. Check out the key features below:

Feature	Details
Minimum Deposit	₹1,000
Tenure Range	7 days to 10 years
Interest Rate (p.a.)	4.00% to 7.65% for regular customers (for domestic FDs)
Payout Options	Monthly (monthly payout is at a discounted rate) Quarterly Annually At maturity
Pre-mature Withdrawal	Allowed with a 1% penalty
Loan against FD	Allowed
Auto-renewal	Allowed

Note: The above interest rates and other information are valid as of August 6, 2025. This rate is subject to change, so please verify the latest rate before investing.

B) Utkarsh Small Finance Bank Scheme for Senior Citizens

If you’re 60 years or older, you get an additional 0.50% per annum over the standard FD interest rate offered to regular investors. After this addition of a bonus rate, the highest interest rate offered by the bank is 8.15% p.a. (as of August 6, 2025) for a tenure of 2 Years (730 Days) up to 3 Years (1095 Days). 

C) Utkarsh Small Finance Bank FD Plans - Tax Saver FD

Want to earn competitive returns + gain tax benefits? The Utkarsh Small Finance Bank tax saver FD lets you earn fixed returns along with offering tax benefits under Section 80C of the Income Tax Act. You can claim 100% of the amount invested in this FD as a “deduction” from your taxable income (only under the new regime) up to ₹1.5 lakhs. 

However, this Utkarsh Small Finance Bank FD plan comes with a mandatory 5-year lock-in period. You cannot access your investment before maturity. To understand better, let’s check out the key features below:

Feature	Details
Minimum Deposit	₹1,000
Maximum Deposit (per FY)	₹1.5 lakh (principal amount is eligible for tax deduction under Section 80C)
Tenure	Fixed 5-year lock-in period
Interest Rate (p.a.) for Tax-Saver FDs	7.25% (regular investors)  7.75% (senior citizens) Please note that the highest rate for domestic FDs is 7.65% (for regular customers) and 8.15% p.a. (for senior citizens).
Payout Options	Monthly Quarterly Annually At maturity
Premature Withdrawal	Not allowed
Auto-renewal	Not allowed
Loan Against FD	Not allowed
Nomination Facility	Available

Note: The above interest rates and other information are valid as of August 6, 2025. This rate is subject to change, so please verify the latest rate before investing.

Key Features of Utkarsh Small Finance Bank FD Plans

Planning to invest? Utkarsh Small Finance Bank has outlined specific rules for opening, renewing, and withdrawing fixed deposits. The key features mentioned below apply to all customers and should be checked before investing:

1. Tenure

The shortest deposit period available is 7 days. Whereas the maximum deposit period offered by the bank is up to 10 years.

2. Premature Withdrawal Penalty

If you withdraw your FD after 7 days but before maturity, a 1% penalty applies. The reduced interest will be calculated as the lower of:

• 1% less than the interest rate on the date of deposit (for the period the FD remained)

or

• 1% less than the contracted rate at the time of booking.
  
  

Please note that no interest is paid if the FD is withdrawn within 7 days of opening.

3. FD Booking Timing

Your deposit will be booked only after the bank receives clear funds. Be aware that the interest rate applicable will be based on the date funds are received and not when you submitted the request.

4. Tax Deducted at Source (TDS)

Interest earned on FDs is subject to TDS as per the Income Tax Act. You can claim this TDS later while filing your Income Tax return (ITR). 

5. Interest on FDs Below 181 Days

For FDs with a tenure of less than 181 days, simple interest is calculated and paid at maturity. Furthermore, if you choose to receive interest monthly (for any tenure), the amount will be paid at a discounted rate, as per RBI rules.

Is Utkarsh Small Finance Bank FD Safe in 2025?

All the Utkarsh Small Finance Bank FD plans are insured up to ₹5 lakh (principal plus interest) per depositor per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. For those unaware, this scheme is operated and guaranteed by the Reserve Bank of India. 

Now, if the bank were to fail or its license be revoked, depositors would be eligible to receive up to ₹5 lakh from DICGC as compensation. This insurance applies to all deposits, such as fixed, recurring, and savings accounts.

Furthermore, recently (on April 1, 2024), ICRA reviewed two financial instruments issued by the bank and rated them as follows:

Instrument	Amount	Rating	Interpretation
Subordinated Debt	₹200 crore	[ICRA]A+ (Stable) - reaffirmed	Shows that the bank has a strong ability to meet its financial obligations.  The “Stable” outlook means that no major change is expected in the near future.
Certificates of Deposit	₹1,000 crore	[ICRA]A1+ - reaffirmed	It is the highest rating ICRA gives for short-term instruments.  It indicates very strong credit quality and a low risk of default.

Want to Earn Attractive Returns? Start Your FD Journey with GoldenPi Today!

Fixed deposit schemes in Utkarsh Small Finance Bank offer fixed returns and come with flexible tenures. As of August 6, 2025, the bank provides interest rates up to 7.65% for regular investors and 8.15% for senior citizens [for a tenure of 2 Years (730 Days) up to 3 Years (1095 Days)].

Backed by solid credit ratings from ICRA, the bank also offers confidence to cautious investors. The best part? You don’t need to visit a branch! You can now invest in Utkarsh Bank FDs online via the GoldenPi platform. Booking takes just a few minutes. Start your application from here!