7 Mins

Introduction

Fincare Small Finance Bank is a new age bank which started its operations in 2017. Though it is a new bank, it is not new to the banking industry. This bank is the result of the process of coming together of 2 NBFCs. The bank stands true to its motto of transforming banking into smart banking. It offers multiple fixed deposit options to its clients for them to choose from. In this article, we have covered about Fincare Small Finance Bank FD, and it’s interest rates in detail.

Fincare Small Finance Bank FD rates 2020

The following table shows the FD interest rates of Fincare Small Finance Bank.

Fincare FD rates range between 3%-6.5% for regular citizens and 3.5% -7% for senior citizens with tenure varying between 7 days and 7 years. The Fincare fixed deposit interest rates are higher than their saving account rates. Moreover, the senior citizens get an additional 0.5% interest on their FD investments. Investors can opt for receiving interest monthly, quarterly or at the time of maturity.

The highest Fincare Small Finance Bank’s FD rate is 6.5% for a regular investor for the tenure of 3-4 years. For the same tenure, the senior citizen FD rate is 7%.  Returns from Fincare Small Finance Bank fixed deposits can be calculated using the Fincare Small Finance Bank fixed deposit calculator.

TenureRegular FD RatesSenior Citizen FD Rates
7 days to 45 days3.00%3.50%
46 days to 90 days3.25%3.75%
91 days to 180 days3.50%4.00%
181 days to 364 days5.00%5.50%
12 months to 15 months6.00%6.50%
15 months 1 day to 18 months6.00%6.50%
18 months 1 day to 21 months6.25%6.75%
21 months 1 day to 24 months6.25%6.75%
24 months 1 day to 30 months6.30%6.80%
30 months 1 day to 36 months6.30%6.80%
36 months 1 day to 42 months6.50%7.00%
42 months to 48 months6.50%7.00%
48 months 1 day to 59 months6.50%7.00%
59 months 1 day to 66 months6.00%6.50%
66 months 1 day to 84 months5.50%6.00%
Note: The rate of interest of Fincare Small Finance Bank is subject to change

Key Features of Fincare Small Finance Bank Fixed Deposit

Fincare Bank FD rates are higher than its savings account rates. The key features of Fincare Small Finance Bank fixed deposits are listed below:

Tenure

The Fincare Small Finance Bank fixed deposit tenure ranges between 7 days to 7 years. Once invested, one cannot change the tenure of Fincare Small Finance Bank fixed deposit investment. However, one can opt for premature withdrawal. And investors can close the existing Fincare Small Finance Bank fixed deposit and start a new FD with the desired tenure.

Minimum and Maximum Deposit Amount

The minimum and maximum investment for Fincare Small Finance Bank FDs depends on the type of FD.

  • Small Fixed Deposit: Minimum investment is INR 50,000, while maximum investment is INR 6 lakhs
  • Priority Plus FDs: Minimum investment is INR 2 crore, while maximum investment is INR 30 crore
  • Tax Saver FDs: Minimum investment is INR 5,000, while maximum investment is INR 1.5 lakhs per annum.

Fincare Small Finance Bank FD Interest Rate

Fincare Small Finance Bank fixed deposit offers interest rates in the range of 3% p.a. to 6.5% p.a.

Preferential Interest Rates

Fincare Small Finance Bank offers preferential rates to senior citizens. Senior citizens get an additional 0.5% on their FD investments. The rate of interest on senior citizen term deposits ranges from 3.5%-7%.

Eligibility

An FD account in Fincare Small Finance Bank can be opened by eligible investors. Following is the eligibility criteria.

  • Resident and Non-Resident Indians
  • HUFs
  • Sole Proprietors
  • Partnership Firms
  • Corporates
  • Trusts, Clubs, Associations, and Societies

Documents required

Following are the documents that one requires to open an FD account with Fincare Small Finance Bank.

  • PAN Card or Form 60/61
  • Aadhar Card
  • Firm’s customer ID (for existing customers)

Additional Payments

It is not possible to deposit any additional amount in an existing Fincare Small Finance Bank fixed deposit. However, one can always invest in a fresh Fincare Small Finance Bank fixed deposit with the additional amount.

Tax and TDS

Investment in Fincare Small Finance Bank Tax Saving Fixed Deposit qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. Investors can claim the tax benefits while filing their income tax returns. All other Fincare Small Finance Bank term deposits do not qualify for tax saving.

Fincare Small Finance Bank FDs’ interest income is taxable as per the individual’s respective income tax slab rates. Moreover, Fincare Bank deducts TDS of 10% (20% if PAN isn’t available) for interest income exceeding INR 40,000 (INR 50,000 for senior citizens).

One can determine the interest income that they might earn from their FD investments is above or below the TDS threshold limit using the bank fixed deposit calculator. Moreover, they can determine their tax liability using an Income Tax Calculator. Scripbox’s online Income Tax Calculator helps in determining the tax liability for free.

Safety

Under the Deposit Insurance Scheme of RBI, DICGC insures all Fincare Small Finance Bank deposits up to INR 5,00,000.

Premature withdrawal

Fincare Small Finance Bank will allow premature or partial withdrawals as per the FD type. The Priority Plus FD has separate interest rates for with and without premature withdrawal option. The premature withdrawal comes with a penalty of 0.5% interest. Hence investors will receive 0.5% less interest on the interest accumulated till the date of withdrawal. Also, there is no premature withdrawal facility on the tax-saving FDs.

Nomination Facility

Depositors can nominate beneficiaries for their Fincare Small Finance Bank FDs.

Auto-Renewal

Fincare Small Finance Bank offers an auto-renewal facility to depositors for their FDs.

Convenience

Opening an FD in Fincare Small Finance Bank is easy and convenient through their online portal.

Loan against FD and Overdraft

Fincare Small Finance Bank allows investors to take a loan against the FD investment. This will help investors to meet their short term liquidity requirements. Moreover, they do not have to go through the hassle of applying for a fresh loan. The loan against Fincare Small Finance Bank FDs is given as per the rules of the bank. These rules are subject to change from time to time as per the bank’s discretion.

Pan Card

PAN Card isn’t mandatory to invest in Fincare Small Finance Bank FDs. However, not submitting the PAN Card has its drawbacks. The Fincare Bank will deduct TDS at 20% instead of 10%. Moreover, it will not issue any TDS certificate. Also, all exemption certificates (Form 15G and 15H) will be invalid.

Requirement of savings account

Individuals need not have a Fincare Small Finance Bank account to open a fixed deposit account.

Type of Fixed Deposit Schemes

  • Smart Fixed Deposit
  • Priority Plus Fixed Deposit
  • Tax Saver Fixed Deposit

Type of Fixed Deposit Schemes: In Detail

Smart Fixed Deposit

The Smart Fixed Deposit scheme offers significant interest rates to its depositors. The scheme is flexible in terms of interest payout and tenure.

  • Tenure: 7 days to 7 years
  • Minimum Deposit Amount: INR 50,000
  • Maximum Deposit Amount: INR 6,00,000
  • Interest: Cumulative and Non-cumulative
  • Premature Withdrawal: Available
  • Auto-Renewal Facility: Available

Priority Plus Fixed Deposit

The scheme enables corporates to make more than INR 2 crore deposits and safeguard their savings while earning interest. The scheme offers two options, i.e. with premature withdrawal and without premature withdrawal facility. Also, the FD rates for both the options vary.

  • Tenure: 7 days to 36 months
  • Minimum Deposit Amount: INR 2 crore
  • Maximum Deposit Amount: INR 30 crore
  • Interest: Cumulative and Non-cumulative
  • Premature Withdrawal: Available, however, with a penalty of 0.5%.
  • Nomination Facility: Available

Tax Saver Fixed Deposit

The scheme helps its depositors to save tax. As per the Section 80C of the Income Tax Act, deposits up to INR 1,50,000 are eligible for a tax deduction.

  • Lock-in period: 5 years
  • Minimum Deposit Amount: INR 5,000
  • Maximum Deposit Amount: INR 1,50,000
  • Interest: Cumulative and Non-cumulative
  • Premature Withdrawal: Not available
  • Auto-Renewal Facility: Available
  • Overdraft Facility: Not available

Does Fincare Small Finance Bank offer Recurring Deposits?

Yes, Fincare Small Finance Bank offers recurring deposit schemes.

  • Tenure: 6 months to 5 years
  • Minimum Deposit Amount: INR 500 per month
  • Maximum Deposit Amount: INR 1,50,000 per month
  • Also, the bank doesn’t currently offer preferential interest rates on RDs for senior citizens and staff. Following are Fincare Small Finance Bank recurring deposit rates:
TenureGeneral Rates
7 days – 45 days3.00%
46 days – 90 days3.25%
91 days to 180 days3.50%
181 days – 364 days5.00%
12 months – 15 months6.00%
15 months 1 day – 18 months6.00%
18 months 1 day – 21 months6.25%
21 months 1 day – 24 months6.25%
24 months 1 day – 30 months6.30%
30 months 1 day – 36 months6.30%
36 months 1 day – 42 months6.50%
42 months 1 day – 48 months6.50%
48 months 1 day – 59 months6.50%
59 months 1 day – 66 months6.00%
66 months 1 day – 84 months5.50%
Note: Fincare Small Finance Bank RD rates are subject to change