Utkarsh Small Finance Bank Tax Saving FD

Want to save tax + earn fixed returns? Utkarsh Small Finance Bank tax-saving FD is a popular option for conservative FD investors. 100% of the amount invested in this FD scheme is eligible for deduction under Section 80C of the Income Tax Act. 

If you file your Income Tax Return (ITR) under the old regime, you can avail of up to ₹1.5 lakh deduction in a financial year and reduce your taxable income. Looking to invest? 

In this article, let’s understand what the Utkarsh Small Finance Bank tax-saving FD is, its key features, and how it works. Also, we will check out the latest Utkarsh Small Finance Bank tax-saving FD interest rate 2025.

What is Utkarsh Small Finance Bank Tax Saving FD?

Utkarsh Small Finance Bank tax-saving FD is a fixed deposit scheme where you invest a lump sum for 5 years at a fixed interest rate. In return, you get tax benefits under Section 80C of the Income Tax Act. 

You can claim a deduction of up to ₹1.5 lakh per financial year. This deduction reduces your taxable income, which ultimately leads to a lower income tax liability. However, please note that the FD cannot be broken before maturity, except in specific cases like death claims or regulatory directions. 

For more clarity, let’s check out some key features of tax-saving FD Utkarsh Small Finance Bank:

Feature	Details	Explanation
Tax Benefit	Tax deduction up to ₹1.5 lakh under Section 80C	100% of the amount you invest can be claimed as a deduction under the old regime.
Eligibility	Indian resident individuals and Hindu Undivided Families (HUFs).	Corporations, Trusts, Associations of Persons (AOPs), and Bodies of Individuals (BOIs) cannot open Utkarsh Small Finance Bank Tax Saving FD.
Deposit Amount	Minimum: ₹1,000 Maximum: ₹1.5 lakh per financial year	You can invest any amount, but the maximum deduction will be restricted to ₹1.5 lakh in one financial year.
Tenure	Fixed 5-year lock-in	Funds cannot be withdrawn before 5 years, except in specific cases like a death claim or a regulatory order.
Interest Payout Options	Monthly (at discounted rate) Quarterly At maturity	You can choose when to receive interest.  Please note that monthly payouts have slightly lower rates, while quarterly or maturity payouts give the full rate.
Nomination Facility	Available	You can nominate someone to receive the deposit amount in case of your death.
Joint Holding	First holder gets Section 80C benefit	If the FD is in joint names, only the first account holder can claim the tax deduction.

Utkarsh Small Finance Bank Tax-Saving FD Interest Rate 2025

As of August 8, 2025, Utkarsh Small Finance Bank tax-saving FD offers interest rates of 7.25% p.a. for regular customers (below the age of 60 years) and 7.75% p.a. for senior citizens after the addition of a bonus of 0.50% p.a.

Tenure	General Customers	Senior Citizens
5 Years	7.25% p.a.	7.75% p.a.

Note: The above interest rates are valid as of August 8, 2025. This rate is subject to change, so please verify the latest rate before investing.

Important Points

• The 7.25% and 7.75% p.a. Interest rates only apply to tax-saver FDs. Overall, the peak rates offered by the Utkarsh Small Finance Bank are 7.90% on FD Plus (₹1 crore to ₹3 crore) and 7.65% on regular domestic FDs. Senior citizens earn an additional 0.50% on each.
• Auto-renewal is not allowed. At maturity, the amount will be credited back or re-invested only on your instruction.
• FD will be opened only after the bank receives clear funds in your account. The applicable rate will be as of the date the funds are received.
• Interest is subject to TDS under the Income Tax Act. To avoid the deduction of TDS, you can submit Form 15G/ 15H.
• You cannot take a loan against the Utkarsh Small Finance Bank tax-saving FD.

Don't wait till 31st March! Book your Utkarsh Small Finance Bank tax-saving FD on the GoldenPi platform today! 

How Does Tax Saving Fixed Deposit at Utkarsh Small Finance Bank Work?

To gain the most from your Utkarsh Small Finance Bank tax-saving FD, you must:

• Invest in the FD
• Claim a deduction under Section 80C
• Then pay tax on the reduced income

For more clarity, let’s see how it happens step-by-step:

Step I: Calculate Gross Total Income

Add income from all sources such as salary, house property, business/profession, capital gains, and other income. This gives you your “gross total income”.

Step II: Invest in Tax Saver FD

Deposit an amount (up to ₹1.5 lakh in a financial year) in Utkarsh Small Finance Bank Tax Saving FD.

Step III: Claim Deduction under Section 80C

Subtract the invested amount from your “gross total income” to get your “net taxable income”.

Step IV: Pay Tax as per Slabs

Now, apply the relevant income tax slab rates on your “net taxable income” to determine your final income tax liability.

Let’s also study an example for better understanding:

Say Mr. Ashok has a gross total income of ₹8,00,000. He invests ₹1,50,000 in Utkarsh Small Finance Bank tax-saving FD. After applying the deduction, his net taxable income gets reduced to ₹6,50,000 (₹8,00,000 – ₹1,50,000). Now, the income tax payable will be calculated on an income of ₹6,50,000 (instead of ₹8,00,000). 

Want to Save Tax for FY 25-26? Invest in Utkarsh Small Finance Bank Tax-Saving FD with GoldenPi Today!

If you file your ITR under the old regime, you can invest in the Utkarsh Small Finance Bank tax-saver FD and can claim up to ₹1.5 lakh deduction under Section 80C. As of August 8, 2025, the FD offers 7.25% p.a. for general customers and 7.75% p.a. for senior citizens. Once booked, you can continue to earn fixed returns at this competitive interest rate for the entire 5-year duration. 

So, want to combine tax savings with assured returns? Book your Utkarsh Small Finance Bank Tax Saving FD online via GoldenPi in minutes. Start the process today!