{"id":69761,"date":"2026-08-13T16:16:25","date_gmt":"2026-08-13T10:46:25","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=69761"},"modified":"2026-08-13T16:16:28","modified_gmt":"2026-08-13T10:46:28","slug":"3-year-fd-ujjivan-vs-au-vs-utkarsh-sfb","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/3-year-fd-ujjivan-vs-au-vs-utkarsh-sfb\/","title":{"rendered":"3-Year FD: Ujjivan vs AU vs Utkarsh SFB"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p class=\"wp-block-paragraph\">If you are comparing a <strong>3-year FD between Ujjivan Small Finance Bank, AU Small Finance Bank and Utkarsh Small Finance Bank<\/strong>, the interest rates are fairly close, but Utkarsh currently offers 7.50% p.a. for the 2-year to 3-year tenure, compared with 7.40% at AU Small Finance Bank and 7.25% at Ujjivan SFB for a regular depositor. For senior citizens, the corresponding rates are 8.00%, 7.90% and 7.75%, respectively. The small difference in rates matters over a three-year period, but deposit insurance, premature withdrawal rules, taxation and the exact FD tenure should also be considered before choosing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">3-Year FD Rates: Ujjivan vs AU vs Utkarsh<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The three banks are Small Finance Banks (SFBs), which can offer competitive deposit rates as they seek to attract retail deposits. As of August 2026, their three-year FD rates are:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Bank<\/th><th>Regular Customer<\/th><th>Senior Citizen<\/th><\/tr><\/thead><tbody><tr><td>Ujjivan SFB<\/td><td>7.25% p.a.<\/td><td>7.75% p.a.<\/td><\/tr><tr><td>AU Small Finance Bank<\/td><td>7.40% p.a.<\/td><td>7.90% p.a.<\/td><\/tr><tr><td>Utkarsh SFB<\/td><td>7.50% p.a.<\/td><td>8.00% p.a.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Ujjivan&#8217;s current rate for deposits from 2 years and 1 day up to 3 years is 7.25%. Its rate increases to 7.55% for deposits from 3 years and 1 day to 3.5 years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AU Small Finance Bank currently offers 7.40% for deposits from 30 months and 1 day to 36 months, while deposits from 36 months and 1 day to 45 months earn 7.00%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Utkarsh SFB offers 7.50% for deposits from 730 days up to 1,095 days, covering a three-year FD. Senior citizens receive 8.00% for the same tenure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Are 3-Year FD Rates Different?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">FD interest rates are not fixed across all banks or even across all tenures within the same bank. Banks periodically revise rates depending on their deposit requirements, liquidity conditions, competition and broader interest-rate conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is why a three-year FD may not necessarily offer a higher rate than a two-year or special-tenure FD. For example, Utkarsh currently offers 8.10% to regular customers for its 666-day FD, which is considerably higher than its 7.50% rate for the 730-day to 1,095-day range.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The same principle applies to Ujjivan and AU. Investors should therefore compare the <strong>actual tenure and applicable rate<\/strong>, rather than simply searching for the highest headline FD rate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Ujjivan vs AU vs Utkarsh SFB: What Should Investors Compare?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Interest rate<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">On the current three-year comparison, Utkarsh SFB has a slight advantage for both regular depositors and senior citizens.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The difference between 7.50% and 7.25% may appear small, but on a larger deposit and over three years, even a modest rate difference can affect the maturity amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, investors should not choose an FD purely because of a 0.25 percentage-point difference.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Deposit insurance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A key consideration with any bank FD is DICGC insurance. Eligible deposits with insured banks are covered up to <strong>\u20b95 lakh per depositor per bank<\/strong>, including principal and interest, subject to the applicable rules. Deposits held across different branches of the same bank in the same capacity are aggregated for calculating the insurance limit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Small Finance Banks are included among the categories of banks covered under the DICGC deposit insurance framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes the \u20b95 lakh threshold an important consideration when deciding how much money to keep in one bank.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Premature withdrawal<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A three-year FD can provide predictable returns, but the money is not as flexible as money kept in a savings account. Breaking an FD before maturity may result in a lower applicable interest rate or a premature withdrawal penalty, depending on the bank and product.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, Ujjivan states that a penalty applies to premature withdrawals in certain circumstances. Investors should check the applicable terms before booking the FD rather than assuming they can withdraw without any reduction in interest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does This Mean for Investors?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For a regular depositor specifically looking at a three-year FD, <strong>Utkarsh SFB currently has the highest rate among these three at 7.50%<\/strong>, followed by AU Small Finance Bank at 7.40% and Ujjivan SFB at 7.25%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For senior citizens, the same order applies, with Utkarsh at 8.00%, AU at 7.90% and Ujjivan at 7.75%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the rate difference should be weighed against the amount being deposited, liquidity requirements, tax implications and the depositor&#8217;s comfort with keeping money in an SFB.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FD interest is taxable according to the applicable income-tax rules. Therefore, the advertised interest rate is not necessarily the same as the investor&#8217;s post-tax return.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits and Risks of a 3-Year SFB FD<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A three-year FD can suit investors who want a fixed tenure and predictable interest without taking direct market risk. It can also be useful for financial goals where the money is not expected to be needed immediately.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, there are limitations. Interest rates may move after the FD is booked, meaning an investor may miss higher rates elsewhere if rates rise. On the other hand, if rates fall, an existing FD can continue earning its contracted rate until maturity, subject to the product terms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investors should also remember that DICGC protection is capped at \u20b95 lakh per depositor per bank, including interest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Which 3-Year FD Looks Better?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Based purely on the current interest rate, <strong>Utkarsh SFB leads this three-bank comparison<\/strong>, with 7.50% for regular customers and 8.00% for senior citizens. AU Small Finance Bank is close behind, while Ujjivan SFB currently offers a lower rate for the exact three-year tenure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That does not automatically make Utkarsh the right choice for every depositor. The final decision should consider the amount invested, DICGC coverage, liquidity needs, premature withdrawal conditions and post-tax returns. Rates can also change, so investors should verify the applicable rate on the date the FD is booked.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For someone specifically comparing <strong>Ujjivan vs AU vs Utkarsh SFB for a 3-year FD<\/strong>, the current rate comparison favours Utkarsh at 7.50%, followed by AU at 7.40% and Ujjivan at 7.25% for regular customers. Senior citizens receive an additional rate benefit at all three banks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The difference is relatively small, so the decision should not be based on interest rate alone. Deposit insurance, taxation, premature withdrawal rules and diversification are equally important. Before locking in money for three years, investors should check the latest FD rate and product conditions because banks can revise their deposit rates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Which bank offers the highest 3-year FD rate among Ujjivan, AU and Utkarsh?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Among the three, Utkarsh SFB currently offers the highest rate for a three-year FD at 7.50% p.a. for regular customers. AU Small Finance Bank offers 7.40%, while Ujjivan SFB offers 7.25% for the applicable three-year tenure. Senior citizen rates are higher at all three banks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. What is the 3-year FD interest rate of Ujjivan SFB?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Ujjivan SFB currently offers 7.25% p.a. for deposits from 2 years and 1 day up to 3 years. For deposits starting from 3 years and 1 day, the rate increases to 7.55%. Senior citizens receive an additional 0.50 percentage point on the applicable rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. What is AU Small Finance Bank&#8217;s 3-year FD rate?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">AU Small Finance Bank offers 7.40% p.a. for deposits from 30 months and 1 day to 36 months for regular customers. The senior citizen rate for this tenure is 7.90%. Rates can change, so the bank&#8217;s applicable rate should be checked before booking the FD.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. What is Utkarsh SFB&#8217;s 3-year FD interest rate?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Utkarsh Small Finance Bank offers 7.50% p.a. for deposits with a tenure from 730 days up to 1,095 days. Senior citizens receive 8.00% for the same tenure. This makes Utkarsh the highest-rate option among the three banks for the three-year comparison discussed here.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Are Small Finance Bank FDs covered by DICGC insurance?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Small Finance Banks are included under the DICGC deposit insurance framework. Eligible deposits are insured up to \u20b95 lakh per depositor per bank, including principal and interest, subject to the applicable rules. Deposits held in the same capacity and same right across branches are aggregated for the insurance limit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Is a 3-year FD better than a shorter FD?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Not necessarily. A three-year FD can provide predictable returns for a longer period, but shorter or special-tenure FDs can sometimes offer higher interest rates. For example, Utkarsh&#8217;s 666-day FD currently offers 8.10%, compared with 7.50% for its 730-day to 1,095-day range.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Can I withdraw a 3-year FD before maturity?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Generally, premature withdrawal may be available, but the applicable interest can be reduced and a penalty may apply depending on the bank and FD product. Investors should read the premature withdrawal terms before booking the deposit, particularly if the money may be required before the three-year maturity date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Do senior citizens get higher FD rates from these banks?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Ujjivan, AU Small Finance Bank and Utkarsh SFB currently provide additional interest for eligible senior citizens. For the three-year comparison, the rates are 7.75% at Ujjivan, 7.90% at AU and 8.00% at Utkarsh. Eligibility conditions can vary by bank.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. Is FD interest taxable in India?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Interest earned from a bank FD is taxable according to the applicable income-tax rules. Tax treatment and TDS requirements depend on factors such as total interest, age and the depositor&#8217;s tax situation. Therefore, investors should compare the post-tax return rather than looking only at the advertised FD rate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10. Should investors put more than \u20b95 lakh in one Small Finance Bank FD?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Investors should understand the DICGC limit before placing a large deposit. Eligible deposits are insured up to \u20b95 lakh per depositor per bank, including principal and interest. Amounts above that limit are not covered by DICGC insurance, so depositors with larger sums may consider diversification across banks based on their risk tolerance and financial requirements.<\/p>\n\n\n\n<p class=\"has-ast-global-color-5-color has-vivid-red-background-color has-text-color has-background has-link-color wp-elements-e86fd587e2d124f6150f0adba7a93ed0 wp-block-paragraph\">Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL &amp; certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are comparing a 3-year FD between Ujjivan Small Finance Bank, AU Small Finance Bank and Utkarsh Small Finance [&hellip;]<\/p>\n","protected":false},"author":26,"featured_media":69766,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[948],"tags":[],"class_list":["post-69761","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market-news"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/69761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=69761"}],"version-history":[{"count":1,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/69761\/revisions"}],"predecessor-version":[{"id":69771,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/69761\/revisions\/69771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/69766"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=69761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=69761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=69761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}