Equitas Small Finance Bank, as the name suggests, is a small finance bank founded by Equitas in the year 2007 as a microfinance lender. The bank is headquartered in Chennai and had received a license from the Reserve Bank of India on 5th September 2016 as a subsidiary of holding company Equitas Holdings Ltd. Subsequently, Equitas became a scheduled commercial bank effective 4th Feb 2017. As of July 2017, around 83% of the financial institution’s total transactions were carried out online. The Equitas small finance bank is popular for extending savings and locker facilities. Equitas Small Finance fixed deposit scheme also remains one of the most sought after financial products from this bank.
The Equitas Bank FD rates and lucrative features account for the scheme’s growing popularity. In fact, it is regarded to be a useful means of mobilizing small savings and generating steady returns.
|Bank Name||Time Period|
|Equitas Bank||1 Year|
|Equitas Bank||9 Months|
|Equitas Bank||6 Months|
|Equitas Bank||3 Months|
In this article
Equitas Bank FD – Key Features
Often, before investing, there are certain questions regarding the FD that come across the investor’s mind and need to be answered. We have curated some of the features of Equitas Bank FD that might answer these questions for you:
Totally Safe to Invest – Equitas Bank is a scheduled commercial bank and is registered with RBI. Furthermore, the lender has got a stable rating by CRISIL as well and is also listed on the stock exchange. If you are a risk-averse investor and seeking a safe investment option, Equitas Bank FD can be considered as one of the options as the deposits are covered by Rs 5 lakh insurance by RBI. (deposits are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of RBI)
Yes, premature withdrawal is available on Equitas FD. Generally, if the amount is withdrawn before maturity, banks pay out a lower interest amount than that displayed at the time of booking the FD. This is done to discourage frequent withdrawals and encourage continued savings.
In the case of Equitas, if the FD is withdrawn within 6 months, the bank will pay a 1% lower interest than the applicable interest rate at the time of booking the FD. Post 6 months however you will get the entire interest amount.
Minimum deposit amount: The minimum amount needed to book an FD with Equitas Bank is Rs. 5000.
Current Equitas Bank FD interest rates: The latest Equitas FD rates range from 3.60% to 6.5% which makes it a perfect fit for an investor with less risk appetite.
Tenure: The tenure for Equitas Bank FD ranges from 7 days to 10 years and once the tenure is selected, the investor has to stick with the same till maturity.
Loan against FD: Equitas Small Finance Bank provides its customers with a loan against FD facility.
Auto-renewal and nomination facility – Provided by the bank
Factors Influencing Equitas Bank FD Interest Rates
It must be noted that the rate of interest accompanying fixed deposit schemes are often influenced by both internal and external factors.
For example, these following are among the most crucial factors that influence Equitas Bank FD rates –
- Age of accountholder
The age of the FD holder plays a decisive role when it comes to determining its interest rate. Typically, senior citizens are more likely to secure a higher rate of interest on their fixed deposit when compared to regular FD holders. For instance, the Equitas Bank FD rates for senior citizens are 0.50% more when compared to other customer types.
- Fixed deposit tenure
Usually, an FD with a longer tenure is considered more useful for generating higher returns. It is because a longer tenure attracts higher interest rates. So, individuals who plan to build a robust corpus to meet pre-set financial goals should consider choosing Equitas Small Finance Bank FD against a long tenure.
- Investment amount
Individuals who invest a substantial deposit amount are likely to enjoy higher rates of interest. Applicants who intend to open an FD account should consider depositing a large sum to maximise their earnings.
- Economic conditions and RBI policies
The existing economic conditions, along with current fiscal policies, also influence Equitas Bank fixed deposit interest rates. For instance, repo rate cuts lead to a reduction in fixed deposit rates.
Equitas Small Finance Bank FD Rates
(Last updated – 27th January 2021)
Like discussed, the rate of interest accompanying a fixed deposit depends on customer type and their age. The table below offers a fair idea of the same –
|Tenure||FD Interest Rates for General Citizens||
FD Interest Rates for Senior Citizens
|7 – 14 days||3.50%||4.00%|
|15 – 29 days||3.50%||4.00%|
|30 – 45 days||3.50%||4.05%|
|46 – 62 days||4.00%||4.50%|
|63 – 90 days||4.00%||4.50%|
|91 – 120 days||4.75%||5.25%|
|121 – 180 days||4.75%||5.25%|
|181 – 210 days||5.25%||5.75%|
|211 – 270 days||5.25%||5.75%|
|271 – 364 days||5.25%||5.75%|
|1 year to 18 months||6.35%||6.85%|
|18 months 1 day to 2 years||6.25%||6.75%|
|2 years 1 day to 887 days||6.35%||6.85%|
|889 days to 3 years||6.35%||6.85%|
|3 years 1 day to 4 years||6.25%||6.75%|
|4 years 1 day to 5 years||6.25%||6.75%|
|5 years 1 day to 10 years||6.50%||7.00%|
Eligibility of Equitas Fixed Deposit Scheme
Individuals over the age of 18 and belonging to any of the following categories can open an Equitas Small Finance Bank FD.
- Resident Indians
- Hindu Undivided Families
- Partnership firms
- Trust accounts
- Sole proprietorship
- Limited companies
It must be noted that the financial institution may require applicants to meet additional requirements to open an FD.
Types of Equitas Fixed Deposit Scheme
Equitas Small Finance Bank provides two distinct types of FD schemes to the public. The same are discussed below –
1. Equitas Fixed Deposit
This particular type of FD scheme is directed towards individuals who are existing customers with the banking institution. Individuals can opt for a cumulative or a non-cumulative account type.
Some prominent features of this FD scheme include –
- An account can be opened for a tenure ranging between 7 days and 10 years.
- It allows auto-renewable and nomination facilities.
- FD holders can withdraw prematurely from their account but will get a lower interest rate by 1% if withdrawn before 6 months from date of opening the account.
2. Equitas Selfie FD
The said FD account is directed towards individuals who do not hold an account with Equitas Small Finance Bank. Besides the quarterly and non-cumulative account option, other features for this FD type include –
- It can be opened instantly with the help of PAN and Aadhaar.
- It comes with a tenure ranging between a week and a year.
- Account-holders can withdraw from their account prematurely. They will, however, get a 1% lower interest rate than it was displayed at the time of account opening in case the amount is withdrawn before 180 days.
- The FD comes with a nomination facility.
- One can open an Equitas Selfie FD with any amount ranging between Rs. 5000 and Rs. 90000.
How is Interest on Equitas FD Computed?
Individuals can compute interest on Equitas FD by using the formula given below –
A = P (1 + r/n) ^ nt
A = Maturity value
P = Principal deposit
r = Rate of interest
n = Compounding frequency
t = Deposit tenure
Russel opens an Equitas small finance bank FD with Rs. 2 lakh for 60 days at the rate of 4.6% compounding annually. Using the above formula,
A = P (1 + r/n) ^ nt
= 200000 (1+4.6/1) ^ 1×60
= Rs. 2,01,564
Therefore, on maturity, Russel will receive Rs. 2,01,564 from his FD account and will earn Rs. 1564 as interest amount.
TDS on Equitas Bank FD
Typically, the interest accrued on Equitas Bank fixed deposit accounts is subject to taxation. To elaborate, when the interest amount exceeds Rs. 40,000 in a financial year, FD holders must pay TDS at the rate of 10%. Notably, for senior citizens, the exemption threshold is Rs. 50,000. Regardless, FD holders can claim tax exemption on such income by submitting form 15G or Form 15H.
Individuals can use the FD calculator to make an informed decision when it comes to selecting a profitable combination of tenure and Equitas Bank FD rates. Individuals must also be clear about the terms of service that accompany this financial product.