Summary : Ujjivan Small Finance Bank Limited’s official resident Regular Fixed Deposit page, checked on 11 November 2026, displayed rates effective from 5 August 2025 for deposits below ₹3 crore. The published general rate reaches 7.45% per annum at exactly 24 months; the bank adds 0.50 percentage point for eligible senior citizens, making 7.95% for that slab. The resident callable schedule ranges from seven days to 120 months. Callable means the product permits partial withdrawal of term deposits” premature and partial withdrawal, but it does not preserve the booked rate. The bank states that closure within six months attracts a 1% penalty on the prevailing rate applicable to the period actually held, while closure after six months does not attract that penalty; the depositor can still earn a lower rate because the actual-tenure rate replaces the original longer-tenure rate. Rates can change, so the deposit receipt and booking-date rate card control. For interest credited or paid from 1 April 2026, resident bank-interest TDS is governed by section 393 of the Income-tax Act, 2025: the threshold is ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen, with withholding at the applicable rate when the threshold is exceeded. DICGC aggregates principal and interest across all deposits in the same right and capacity at the bank, with a maximum insurance amount of ₹5 lakh.
- Official Resident Callable Rate Table Checked on 11 November 2026
- Regular Callable FD Is Different From Platina and Tax-Saver Variants
- Premature Closure Uses the Actual Period, Then the Penalty Rule
- Illustration of the method, not a bank quotation
- Payout Choice Changes Timing and Effective Return
- Income-Tax Treatment for Tax Year 2026-27
- Senior status, declarations and deductions are separate questions
- DICGC Insurance Aggregates All Same-Capacity Balances
- Booking and Monitoring File
- Frequently Asked Questions
- What rate did Ujjivan SFB publish for exactly 24 months?
- Does 24 months and one day receive the same published rate?
- What happens if a callable FD is closed within six months?
- Is there a premature penalty after six months?
- What are the resident bank-interest TDS thresholds for Tax Year 2026-27?
- Does DICGC insure each Ujjivan FD receipt separately up to ₹5 lakh?
- Is this article a recommendation to open the deposit?
- Key Takeaways
Official Resident Callable Rate Table Checked on 11 November 2026
The bank’s page stated that the domestic Fixed Deposit and Sampoorna Nidhi rates shown below were effective from 5 August 2025 for deposits below ₹3 crore. The same page warned that rates are subject to periodic change and that the applicable rate depends on the date and time when the bank receives funds. A depositor should therefore save the live rate card at booking and compare it with the deposit advice. The table is a factual summary, not a recommendation or rate ranking.
| Tenure | General rate | Senior-citizen rate |
|---|---|---|
| 7 days to 29 days | 3.50% | 4.00% |
| 30 days to 89 days | 4.15% | 4.65% |
| 90 days to 179 days | 4.65% | 5.15% |
| 180 days | 6.00% | 6.50% |
| 6 months to below 12 months | 5.50% | 6.00% |
| 12 months to below 24 months | 7.25% | 7.75% |
| Exactly 24 months | 7.45% | 7.95% |
| 24 months 1 day to 990 days | 7.25% | 7.75% |
| 991 days to 60 months | 7.20% | 7.70% |
| 60 months 1 day to 120 months | 6.50% | 7.00% |
The narrow 24-month slab matters. A deposit booked for one day more than 24 months falls into the next published slab, which carries a lower displayed rate. Marketing references to “up to 7.45%” do not identify the customer’s rate unless the amount, exact tenure, residence, age and product variant match the table. The senior addition is an eligibility feature; identity, age and account constitution should be confirmed before funds are placed.
Regular Callable FD Is Different From Platina and Tax-Saver Variants
The Regular Fixed Deposit is a resident callable product. The bank’s page says premature and partial withdrawal are permitted. By contrast, the Platina product is described as non-callable, with an amount above ₹1 crore and below ₹3 crore, a 12-to-60-month tenure range and no part-closure, pre-closure or auto-renewal facility. A tax-saving fixed deposit has its own statutory lock-in and tax conditions. Product name and callable status must appear in the booking evidence; a rate from one variant should not be applied to another.
The resident Regular FD is also not an NRE or NRO deposit. Non-resident deposits have separate eligibility, tenure and rate tables. A change in residential status may require the customer to notify the bank and redesignate accounts under foreign-exchange rules. This article addresses a resident rupee callable term deposit and does not state the terms for non-residents.
Premature Closure Uses the Actual Period, Then the Penalty Rule
The bank’s official explanation states that when a callable FD is closed within six months, a 1% penalty is applied to the prevailing rate for the tenure actually completed. Closure after six months does not incur that penalty under the published explanation. That does not mean the depositor keeps the original contracted rate: interest is recalculated using the rate applicable to the actual period held under the bank’s policy. The result can therefore be lower even when the explicit one-percentage-point penalty no longer applies.
Illustration of the method, not a bank quotation
Assume a one-year deposit is closed after 90 days. The bank determines the applicable 90-day rate under the relevant booking-date schedule and, because closure is within six months, reduces that prevailing rate by one percentage point. It does not merely subtract 1% from the original one-year rate. If closure occurs after nine months, the bank uses the applicable nine-month rate; the published explanation says no separate premature penalty applies after six months. Exact day count, rate card, payout already made and deposit terms can change the settlement, so the authenticated closure quotation should be reviewed before consent.
| Event | Published treatment | Control |
|---|---|---|
| Held to maturity | Booked rate and chosen payout terms apply | Match receipt and maturity credit |
| Closed within six months | Actual-tenure prevailing rate less 1% penalty | Obtain bank calculation before closure |
| Closed after six months | Actual-tenure rate; published explanation says no penalty | Do not assume original rate survives |
| Partial withdrawal | Permitted for callable FD, subject to bank process | Confirm residual receipt and revised interest |
| Platina deposit | Non-callable; no part/pre-closure under published terms | Do not mix product variants |
Payout Choice Changes Timing and Effective Return
The bank offers cumulative and periodic payout choices. A cumulative deposit retains interest for payment at maturity under the applicable compounding method, while monthly or quarterly payout provides earlier cash flow. A monthly payout is commonly discounted relative to the nominal annual rate because interest is paid sooner. Depositors should compare the exact payout table and maturity amount shown at booking instead of applying the headline cumulative rate to every option.
Auto-renewal can place the maturity proceeds into a new deposit at the rate then available, not necessarily the old rate. Maturity instructions, nomination, bank-account credit details and any lien should be reviewed before maturity. A loan or overdraft against the deposit can affect online closure and net proceeds. The deposit advice and authenticated account terms are more reliable than a calculator screenshot.
Income-Tax Treatment for Tax Year 2026-27
Interest on a resident fixed deposit forms part of taxable income under the applicable provisions and chosen tax regime. TDS is only collection at source; it is not the final tax and it does not make interest exempt when no deduction occurs. For a credit or payment on or after 1 April 2026, the Income-tax Act, 2025 applies. Section 393(1), Table item 5(ii), provides a ₹1,00,000 threshold for a senior citizen and ₹50,000 for a person other than a senior citizen where the payer is a banking company. The threshold concerns aggregate covered interest, not each deposit receipt.
The official transition guidance says rates and thresholds were retained while TDS provisions moved to section 393. The applicable withholding rate for resident bank interest is generally 10% under the rates in force when required, subject to PAN, declarations, certificates and other statutory conditions. Once the threshold is exceeded, deduction applies according to the provision rather than only to the excess over the threshold. Customers should reconcile the bank interest certificate, Form 26AS, annual information statement and return records.
Senior status, declarations and deductions are separate questions
The senior-citizen product rate, the TDS threshold and any income deduction are distinct rules. A person may qualify for a bank’s senior rate but still need to examine total income, tax regime and declaration eligibility. Forms for non-deduction should be furnished only when the statutory conditions are met, and an invalid or missing PAN can produce a different withholding result. The customer should verify the Income-tax Rules, 2026 and the bank’s current process before interest is credited.
DICGC Insurance Aggregates All Same-Capacity Balances
DICGC insurance covers principal and accrued interest together up to ₹5 lakh for each depositor in the same right and same capacity at an insured bank. Savings, current, recurring and fixed deposits across all branches of the same bank are aggregated. Opening several FD receipts, using different branches or selecting different maturity dates does not create a separate ₹5 lakh limit for each receipt.
Balances held in genuinely different rights and capacities may be treated separately under DICGC rules, and joint-account name combinations and order matter. A sole proprietor’s business balance is aggregated with the proprietor’s individual balance under the published guide. Insurance does not protect interest-rate expectations, guarantee immediate liquidity, cover amounts beyond the ceiling or replace assessment of concentration and access needs. The projected accrued interest should be included when a depositor reviews the insured amount.
Booking and Monitoring File
- Save the official rate table and product terms visible on the booking date.
- Check the exact tenure boundary, amount slab, callable status and senior eligibility.
- Match principal, rate, payout, maturity, nomination and renewal instructions to the receipt.
- Track total annual interest across all deposits at the bank for TDS and return reporting.
- Include accrued interest and all same-capacity accounts when assessing DICGC coverage.
- Request an authenticated premature-closure value before authorising early withdrawal.
Frequently Asked Questions
What rate did Ujjivan SFB publish for exactly 24 months?
The official resident callable table checked on 11 November 2026 displayed 7.45% per annum for the general category and 7.95% for eligible senior citizens, effective from 5 August 2025.
Does 24 months and one day receive the same published rate?
No. The displayed 24-month-one-day to 990-day slab was 7.25% for the general category and 7.75% for eligible senior citizens.
What happens if a callable FD is closed within six months?
The bank’s published explanation applies the rate for the actual period held and a 1% penalty to that prevailing rate. The bank’s exact settlement calculation should be obtained.
Is there a premature penalty after six months?
The bank’s published explanation says no explicit penalty is charged after six months, but the interest is still based on the actual-tenure rate rather than automatically the original booked rate.
What are the resident bank-interest TDS thresholds for Tax Year 2026-27?
Section 393 of the Income-tax Act, 2025 sets ₹1,00,000 for a senior citizen and ₹50,000 for another person, subject to the statutory conditions.
Does DICGC insure each Ujjivan FD receipt separately up to ₹5 lakh?
No. Principal and interest across all same-right and same-capacity deposits at all branches of the bank are aggregated, with a combined maximum of ₹5 lakh.
Is this article a recommendation to open the deposit?
No. It reports official terms and compliance considerations without recommending an amount, tenure, bank or investment decision.
Key Takeaways
- Verify the live booking rate because the official page says rates are subject to change.
- Exact tenure boundaries matter: the displayed highest general rate applies at exactly 24 months.
- Callable closure recalculates interest for the actual period and may also attract the within-six-month penalty.
- For Tax Year 2026-27, resident bank-interest withholding is governed by section 393 of the Income-tax Act, 2025.
- DICGC’s ₹5 lakh limit aggregates principal and interest across all deposits in the same right and capacity.
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Disclaimer: This article is a neutral educational summary of Ujjivan Small Finance Bank Limited’s resident Regular callable fixed-deposit information and official regulatory and tax material checked on 11 November 2026. It is not investment, deposit, legal, tax or financial advice; it does not recommend Ujjivan Small Finance Bank, any principal amount, tenure, payout option, premature closure or concentration level, and it does not rank the product or predict rates, inflation, liquidity, bank performance or law. The official page displayed rates effective from 5 August 2025 when checked, but the bank expressly states that rates are subject to periodic change and the applicable rate depends on receipt of funds. Product eligibility, senior status, amount slab, exact tenure, compounding, payout, nomination, auto-renewal, lien, partial withdrawal and premature settlement must be confirmed from the authenticated deposit receipt and operative bank terms. The early-closure illustrations are not quotations. Tax treatment depends on residence, age, PAN, aggregate interest, total income, declarations, certificates, tax regime and the law and rates in force when interest is credited or paid; TDS is not final tax. DICGC insurance is statutory, conditional and aggregated by right and capacity and does not insure every receipt separately or guarantee immediate access. Depositors should verify current terms with the bank and obtain qualified tax and financial advice appropriate to their circumstances. TaxGuru accepts no responsibility or liability for any loss of interest, penalty, tax demand, uninsured balance, access delay, renewal outcome, rate change, calculation difference, bank action or other consequence arising from reliance on this article, incomplete information or subsequent changes in product terms, law, regulation or system treatment.
