Fixed Deposits (FDs) remain one of the most popular savings instruments in India due to their safety and assured returns. Among the many options available, Equitas Small Finance Bank has gained attention for offering competitive FD interest rates that appeal to both conservative and growth-focused investors. Understanding how Equitas Bank FD rates work, what benefits they offer, and how they compare to other banks can help savers make informed decisions and optimize their returns. Whether you’re a senior citizen, a short-term planner, or a long-term investor, knowing the details of Equitas Bank’s fixed deposit offerings is essential.
Overview of Equitas Bank FD Rates
Equitas Small Finance Bank offers a range of fixed deposit options tailored to different tenures and customer categories. The FD interest rates vary based on the deposit amount, the term of the FD, and whether the depositor is a regular customer or a senior citizen. These rates are revised periodically in line with market conditions and monetary policies.
Regular FD Rates
For regular customers, Equitas Bank offers fixed deposit rates across different tenures starting from 7 days to up to 10 years. The interest rates typically range between 3.50% to 8.00% per annum depending on the duration of the deposit. Here’s an approximate structure based on common rate slabs:
- 7 to 29 days: 3.50% p.a.
- 30 to 90 days: 4.00% p.a.
- 91 to 180 days: 4.25% p.a.
- 181 to 364 days: 5.75% p.a.
- 1 year to 18 months: 7.75% p.a.
- 18 months to 2 years: 8.00% p.a.
- 2 years to 3 years: 7.50% p.a.
- 3 years to 10 years: 7.25% p.a.
Please note that these figures are indicative and subject to periodic updates by the bank. It is always advisable to check the official website or visit a branch for the latest FD rate chart.
Senior Citizen FD Rates
Equitas Bank offers an additional interest rate benefit to senior citizens, usually about 0.50% higher than the regular rates. This incentive is especially beneficial for retirees looking for stable monthly or quarterly income. For example, if the standard rate for a 2-year deposit is 8.00%, senior citizens may earn around 8.50% p.a.
Senior citizen rates often apply to individuals aged 60 years and above and are applicable only for domestic fixed deposits under individual capacity (not corporate or joint accounts with non-seniors).
Features of Equitas Bank Fixed Deposits
Equitas Bank fixed deposits come with a range of features designed for flexibility, ease, and secure returns. Some of the key features include:
- Flexible Tenure: Choose from short-term (7 days) to long-term (10 years) deposit options.
- Minimum Deposit: You can start with as little as ₹5,000.
- Premature Withdrawal: Available, though subject to a penalty of up to 1% depending on the terms.
- Loan Against FD: Loans and overdrafts up to 90% of FD value are permitted.
- Interest Payout Options: Choose cumulative (reinvested) or non-cumulative (monthly/quarterly) payouts.
These features make Equitas FD accounts not just savings tools, but also instruments for short-term liquidity management and retirement planning.
Online FD Opening and Management
Equitas Bank provides an entirely digital process for opening fixed deposits. Through their online banking or mobile banking platform, customers can:
- Open a new FD account instantly
- View current FD interest rates
- Track interest accrual and maturity
- Close or renew FDs online
This user-friendly digital experience is particularly appealing for tech-savvy customers and NRIs who want to manage their accounts remotely.
Tax Implications on FD Returns
Like all other banks, interest earned on Equitas Bank fixed deposits is taxable under the Income Tax Act. If the interest earned exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, TDS (Tax Deducted at Source) will be applicable at 10%.
However, customers can submit Form 15G or 15H, depending on their eligibility, to avoid TDS deduction if their total income is below the taxable limit.
How to Maximize FD Returns with Equitas Bank
1. Ladder Your FDs
Instead of investing a large sum into a single FD, split it across different tenures. This strategy known as FD laddering helps in maintaining liquidity while benefiting from higher long-term interest rates.
2. Utilize Senior Citizen Benefits
If eligible, always select the senior citizen FD option to take advantage of the extra interest rate. Even a 0.50% difference can add up significantly over time.
3. Reinvest the Interest
Opt for cumulative FDs where the interest is compounded and reinvested. This allows your savings to grow faster compared to monthly or quarterly payouts.
4. Watch for Rate Revisions
FD interest rates are subject to change. Locking in a higher rate when offered can yield better long-term returns, especially during upward trends in the market.
Comparison with Other Banks
Equitas Bank FD rates are often higher than those offered by traditional public sector banks like SBI or Bank of Baroda. However, they are in line with other small finance banks like AU Small Finance Bank or Ujjivan Small Finance Bank. While higher interest is attractive, it is equally important to consider factors such as:
- Deposit insurance up to ₹5 lakh (under DICGC)
- Bank credibility and financial health
- Ease of access and customer support
For risk-averse savers, Equitas provides a balance between competitive returns and regulatory safeguards.
Equitas Bank FD rates make the bank a strong contender for individuals looking to earn safe and consistent returns. With interest rates ranging up to 8.00% for regular customers and higher for senior citizens, Equitas offers one of the more lucrative FD portfolios in the market. Combine that with easy online access, flexible tenures, and attractive features like loan against FD, and you have a robust saving instrument. Always compare current rates, consider your tax liability, and select an FD plan that aligns with your financial goals. Whether you’re saving for retirement, future expenses, or just preserving capital, Equitas Bank FDs provide a reliable way to grow your money securely.