North East Small Finance Bank Fixed Deposit Interest Rates (as on 2023)
North East Small Finance Bank FD Interest Rate (below Rs.1 Crore) w.e.f. 06.06.2023
|Tenors||Interest Rate p.a.(%)|
|Interest Rate p.a.(%)|
|366 days to 1095 days||7.25||8.00|
|1096 days to 1825 days||6.50||7.25|
|1826 days to 3650 days||6.25||7.00|
North East Small Finance Bank Recurring Deposit Interest Rate w.e.f. 06.06.2023
|Tenors||Interest Rate p.a.(%)|
|Interest Rate p.a.(%)|
|More than 5 years upto 10 years||6.00||7.00|
North East Small Finance Bank Domestic Daily Deposit Scheme w.e.f. 06.06.2023
|Tenors||Interest Rate p.a.(%)|
|Interest Rate p.a.(%)|
Snapshot: North East Small Finance Bank
|Eligibility||Resident Indians, Minor, HUF, Sole Proprietorship, Partnership, a Limited Company or Trust|
|Minimum FD||Rs. 1,000|
|Maximum FD||No maximum limit FD|
|FD Tenure||7 days to 10 years|
|Periodicity of Interest Payment||Monthly (at discounted rates) or Quarterly or Reinvestment of Interest|
|Loan against deposit / OD facility||Upto 80% of accrued amount is available|
|Interest to Senior Citizens||0.50% more than general FD for FD amount below Rs.1 Crore|
North East Small Finance Bank Fixed Deposit
North East Small Finance Bank has a range of Fixed Deposits (FD) products at competitive interest rates with various tenures and lots of other benefits. North East Small Finance Bank offers Fixed Deposit schemes for a short term period and long term period.
It is very easy to open a North East Small Finance Bank FD either online through its website or by visiting its nearby branch.
Important Points regarding North East Small Finance Bank Fixed Deposit
- In order to avail Senior Citizen Interest Rates, submission of age proof is mandatory.
- Submission of Income Tax PAN is mandatory, failing which TDS will be deducted at a higher rate.
- PAN is mandatory to book Fixed Deposits, if the total Fixed Deposit holding per customer, per branch exceeds Rs 50,000.
- Loan against deposit / OD facility of upto 80% of accrued amount is available.
Features & Benefits: North East Small Finance Bank Fixed Deposit
- Competitive interest rates are offered with flexible FD tenures to suit your investment plan.
- FD account can be opened online or by visiting your nearest Bandhan Bank branch.
- Minimum Amount of FD: Rs 1,000
- Maximum Amount of FD: No limit
- FD Tenures: 7 days to 10 years
- Different interest payout options such as monthly, quarterly, etc.
- Loan/ Overdraft against FD facility is available upto 90% of the FD amount.
- Easy and fast liquidity options are available.
- Nomination facility is available.
- Part withdrawal facility and auto-renewal facilities
- Senior citizens can enjoy higher interest rate as compared to regular citizens.
North East Small Finance Bank FD Calculator
Eligibility for North East Small Finance Bank Fixed Deposit
Any of the following persons can invest in fixed deposits (FD):
- Proprietary Firm
- Partnership Firm
- Limited Liability Partnership (LLP)
- Association of Persons (AOP)
- Body of Individuals (BOI)
- Local Authority
- Non-Resident Indian (NRI)
- Registered Society
Documents Required for North East Small Finance Bank Fixed Deposit
Following Documents are required for opening a Fixed Deposit Account
|Individual, HUF, Proprietor|
Types of North East Small Finance Bank Fixed Deposits
- North East Small Finance Bank Fixed Deposit: This is a regular FD scheme which helps you invest your idle savings to earn higher returns. Minimum deposit in this scheme is of Rs 1,000. Its tenure ranges from 7 days to 10 years. It offers great rates, flexibility and security for your fixed deposits, with 0.50% higher interest for our Senior citizens, with quarterly and monthly payout options. You can also earn compound interest by reinvesting your principal amount along with the interest earned during the period. Loan / OD Facility are available. Premature closure penalty of 1 % on interest shall apply.
- North East Small Finance Bank Regular Recurring Deposit: It scheme allows you to start saving a small amount regularly to help your money grow slowly but steadily. Minimum deposit in this scheme is of Rs 1,000 and no cap on maximum deposit. The interest is calculated quarterly or as specified by the Bank. Charges for late payment of RD instalment are applicable. Loan against deposit / OD facility is also available. It offers doorstep and SMS alert services. Its tenure ranges from 6 months to 10 years. You can build your wealth securely through regular investments at attractive Interest rates. It gives you opportunity to achieve your short or long term finance goals comfortably. Interest is only paid on maturity.
- North East Small Finance Bank Daily Deposit: The Daily Deposit Scheme has been developed with the objective of inculcating savings habits amongst customers. The scheme is mainly for daily wage earners and small-scale business owners which generates daily income. Petty traders can avail loan with minimum documentation during surge seasons without breaking their savings. It bridges the gap between small savings and banking. The scheme would be a variant of the Recurring Deposit product with a daily frequency. Customers can deposit amounts upwards of Rs 50 and in multiples of Rs 50 thereof on a daily basis. It offers doorstep and SMS alert services. Its tenure ranges from 12 months to 36 months. You can build your wealth securely through regular investments at attractive Interest rates. It gives you opportunity to achieve your short or long term finance goals comfortably. The product also enables the customer to avail of loan against deposit/ OD of upto 80% of accrued amount to take care of short term liquidity needs.
Benefits of Senior Citizens North East Small Finance Bank Fixed Deposit
Senior Citizens are offered more interest rate by North East Small Finance Bank for FD amount below Rs.1 Crore as detailed below:
- 0.50% more than general FD for FD amount below Rs.1 Crore
Tax Information: North East Small Finance Bank Fixed Deposit
TDS (Tax Deducted at Source) will be applicable when the total interest payable or reinvested in Recurring Deposits and/or Fixed Deposits per customer, across all branches, exceeds Rs.10000 in a financial year. A TDS Certificate will be mailed to you after end of every quarter during the Financial Year, providing the details of TDS deducted during the quarter.
|STATUS||TAX RATE||EDUCATION CESS||TOTAL|
|Resident Individuals & HUF||10%||----||10%|
|Co-operative Societies & Local Authority||10%||----||10%|
A fresh Form 15G/H needs to be submitted at the beginning of each Financial Year. Form 15G/H will need to be submitted for all subsequent deposit(s) booked, on every 31st of March. TDS is recovered on the total of interest compounded and interest accrued on the Fixed Deposit(s).
How and when to apply for exemption on TDS?
- If your total taxable income during the financial year is not likely to exceed the maximum amount which is not chargeable to income tax, then you can submit self declaration in Form 15G or 15H (for senior citizens only) to the bank to ensure non deduction of tax at source.
- The declaration has to be given in prescribed format only wherein the valid 10 digit PAN is also required.
- It may be noted that if the interest payable by the bank during the financial year on time deposits is likely to exceed the maximum amount which is not chargeable to income tax, then the Form 15G submitted will be treated as invalid.
- In case of Senior Citizens, if the interest payable by the bank during the financial year on time deposits is likely to exceed the maximum amount which is not chargeable to tax and deduction(s) under chapter VIA, if any, for which declarant is eligible, then the Form 15H submitted will be treated as invalid.
You may refer to following table for more details:
|Category||Name of Form||Exemption limit (Male)||Exemption limit (Female)|
|Individuals(upto age of 60)||Form 15G||Rs.2,50,000||Rs.2,50,000|
|HUFs, Associations, Trusts||Form 15G||Rs.2,50,000||Rs.2,50,000|
|Individual (age 60 years and above but less than 80 years)||Form 15H||Rs.3,00,000||Rs.3,00,000|
|Individual (age 80 years and above)||Form 15H||Rs.5,00,000||Rs.5,00,000|
|Others||Exemption certificate issued by Income Tax Officer||As per Exemption Certificate||As per Exemption Certificate|
North East Small Finance Bank Fixed Deposit FAQ
- What interest payment options are available under Term Deposit with North East Small Finance Bank?
Interest payment on Monthly (discounted), Quarterly and Cumulative is available under North East Small Finance Bank Term Deposit.
- What is the minimum and maximum amount of FD in North East Small Finance Bank?
The minimum amount is Rs.1,000 and there is no cap on maximum FD amount.
- What is the minimum and maximum tenor for which Term Deposit can be kept with North East Small Finance Bank?
The minimum and maximum tenor for general/Senior citizen is 7 days and 10 years respectively.
- Does North East Small Finance Bank offer any special interest rate for Senior Citizen on its Term Deposits?
Yes, an additional interest rate for Senior Citizen is 0.50% for deposits less than Rs. 1 crore.
- When is TDS deducted?
TDS is done at the time of credit of interest to account, if the total interest payable to the customer during the financial year is likely to exceed the limit of Rs.10,000.
- At what rate is TDS deducted?
TDS is deducted at rates as required by section 194A (Resident) and section 195 (NRO) of IT Act 1961 for the following category of account holders:
- Resident Indians (Individuals, Trusts, Associations, HUFs, Firms Indian Companies): 10% plus applicable surcharge and education cess
- Non-Resident Indians: 30% plus applicable surcharge and education cess
- Can I apply for exemption on TDS?
Yes, you can apply for exemption on TDS, in case your total taxable income during the financial year is not likely to exceed the maximum amount which is not chargeable to income tax. For this, you need to submit self declaration in Form 15G or 15H (for senior citizens only) to the Bank to ensure non deduction of tax at source, in the beginning of respective financial year.
Tax Implications and TDS in FD
- An amount invested in fixed deposits in a scheduled bank is eligible for tax deduction under section 80C. Only the interest earned on the deposit is taxable.
- Tax will be deducted at source (TDS), if the interest income on a fixed deposit per annum exceeds Rs.10,000
- A person can exempt from TDS, if he/ she submits Form 15G/ Form 15H in the beginning of each financial year
Factors affecting Fixed Deposit Interest Rates
- Change in Policies Rates by RBI: If there is a change in Cash Reserve Ratio (CRR) and/ or Repo Rate, it affects the fixed deposit interest rate.
- Inflation: As FD interest rate has to be kept higher than inflation by the banks, hence if inflation increases then FD interest rates also go higher. When inflation decreases, banks offer lower interest rates so that people can borrow and spend more.
- Demand and Supply of Credit: With the increase in demand of the credit/ loan, interest rates of fixed deposit also go higher. When the supply is more than the demand of credit, banks offer lower interest rates on fixed deposit.
- Growth Uncertainty: If there is any uncertainty of future economic growth, the banks need to offer higher interest rates on FD as a compensation for higher defNorth Eastlt risks.
- State of Economy: If a country's economic state is very good then the banks of that country offer higher interest rate on fixed deposits in order to attract more investments to extend more credits/ loans.
- Recession: Whenever there is a situation of recession in an economy, it always results into a decrease in the fixed deposit interest rate, as in case of situation of recession, the RBI needs to increase the liquidity in the market by releasing the funds i.e. by lowering CRR and hence, banks reduce the FD interest rates.
- Global Liquidity: Higher global liquidity results into higher domestic liquidity. In such cases banks will offer lower interest rates on FD.
North East Small Finance Bank FD News Dec 2023
- June 6, 2023: North East Small Finance Bank has revised the interest rate on fixed deposits with effect from 06.06.2023
- March 28, 2021: North East Small Finance Bank revises the interest rate on fixed deposits with effect from February 19, 2021