If you are looking for a fixed deposit that offers attractive returns, Utkarsh Small Finance Bank’s special 666-day FD may catch your attention.
The bank is offering an interest rate of up to 8.25% per year on this special FD.
At this rate, a senior citizen investing ₹5 lakh could earn around ₹80,338 in interest by maturity.
But how much will regular customers earn? Let’s understand the complete calculation.
666-Day FD Offers Up to 8.25% Interest
Utkarsh Small Finance Bank’s special FD is available for both regular customers and senior citizens.
For callable bulk deposits of less than ₹3 crore, the applicable rates are:
Regular customers: 8.10% per annum
Senior citizens: 8.25% per annum
Senior citizens get an additional 0.15 percentage point (15 basis points) interest compared with regular customers.
₹5 Lakh FD: How Much Will You Earn?
The return depends on the interest rate applicable to the customer.
Senior Citizen Calculation
Suppose a senior citizen invests ₹5 lakh in the 666-day FD at an interest rate of 8.25%.
At maturity, the amount could be around ₹5,80,338.
This means the estimated interest earned would be approximately ₹80,338.
Regular Customer Calculation
For a regular customer investing the same ₹5 lakh for 666 days at 8.10% interest, the maturity amount could be around ₹5,78,784.
The estimated interest would be approximately ₹78,784.
| Customer Category | Interest Rate | Maturity Amount | Estimated Interest |
|---|---|---|---|
| Senior Citizen | 8.25% | ₹5,80,338 | ₹80,338 |
| Regular Customer | 8.10% | ₹5,78,784 | ₹78,784 |
The senior citizen would earn around ₹1,554 more in interest than a regular customer on a ₹5 lakh deposit, based on these figures.
Don’t Forget About TDS and Tax
The interest earned on an FD is not completely tax-free.
TDS may apply to the interest earned on fixed deposits, depending on the applicable tax rules and the customer’s circumstances.
Therefore, the amount you finally receive after taxes may be different from the figures mentioned above.
It is important to consider the tax impact before investing.
Is This FD Worth Considering?
An interest rate of up to 8.25% can look attractive, particularly for investors who prefer fixed returns.
However, the interest rate should not be the only factor you consider.
Before investing, check the TDS rules, premature withdrawal conditions and other FD terms.
Also, remember that the actual maturity amount can vary depending on the bank’s calculation method and applicable terms.
