Odisha Gramya Bank Short Term FD

What is Odisha Gramya Bank Short Term FD?

The Odisha Grameen Bank Short Term FD is an investment facility aimed to provide stable returns on a short-term deposit. It enables investors to invest over a duration of 7 days to 12 months with stability not affected by market changes. This is a suitable FD option for senior citizens and conservative investors, which offers Odisha Gramya Bank FD rates to those interested in short-term investments. The flexible tenure will allow depositors to select a term that fits their financial goals to offer stable and predictable returns.

Odisha Gramya Bank Short Term FD Interest Rates

The rates of interest on the Odisha Gramya Bank Short Term FD depend on the tenure and the type of depositor. The following is the breakdown of interest rates of FDs under ₹3 crore:

*Odisha Gramya Bank Short Term FD rates w.e.f January 3, 2025.

Key Features of Odisha Gramya Bank Short Term FD

The Odisha Grameen Bank Short Term FD provides good returns and a wide range of benefits to the investors:

• Competitive Interest Rates: The senior citizen receives a maximum of 6.75% p.a., and general investors get as much as 6.25% p.a.
• Flexible Tenure Options: Between 7 days and 12 months, which is suitable for short-term financial goals.
• Low Minimum Deposit Requirement: It has a low minimum deposit requirement of ₹100, and it will be affordable to all investors.
• Interest Payout Options: According to bank regulations, interest payout options (cumulative or non-cumulative) can be chosen.
• Early Withdrawal Facility: Premature withdrawal can be done, but is subject to the relevant penalties according to the current policy of the bank.

How to Apply for Odisha Gramya Bank Short Term FD?

The Odisha Gramya Bank short term fixed deposit can be opened both online and by visiting the branch. It is highly convenient and allows depositors to choose the approach that best suits them.

Online Method

In order to open an Odisha Gramya Bank Short-Term Fixed Deposit online, you ned to follow a few simple steps:

• Log In: Access Odisha Gramya Bank Internet Banking or Mobile App.
• Navigate: Go to the Deposits/Fixed Deposit section.
• Select FD: Choose the Short-Term Fixed Deposit.
• Enter Details: Enter the amount of deposit, the tenure and any other information if required.
• Choose Interest Payout: Select between cumulative and periodic interest payout.
• Review & Submit: Re-check the information and submit the form.

Offline Method

To open a Short-Term Fixed Deposit offline, visit any Odisha Gramya Bank branch and follow these steps:

• Visit the Branch: Go to the nearest Odisha Gramya Bank branch.
• Fill Form: Complete the Fixed Deposit opening form.
• Provide Details: State the deposit amount, tenure, and payout preference.
• Submit KYC Documents: Provide necessary KYC documents if required.
• Make Deposit: Deposit the amount via cash, cheque, or NEFT transfer.
• Get Receipt: Obtain the FD receipt as confirmation of your deposit.

Who Should Choose Odisha Gramya Bank Short Term FD?

ODISHA Gramya Bank offers short term FD to a wide category of investors, making it easy to all customers and organisations to access it:

• Indian Residents: Every resident in India may open an FD account upon meeting the normal KYC requirements of the bank.
• Hindu Undivided Families (HUFs): HUFs can invest in Odisha Gramya Bank FDs by  submitting valid HUF documents and the details of the authorised signatory.
• Partnership Firms & Unincorporated Associations: Eligible companies can open an FD account under these schemes, subject to the rules of documentation and other company protocols.
• Public or Private Companies: Corporates may invest, subject to Odisha Gramya Bank FDs with required regulatory approvals and supporting resolutions.
• Trusts & Foundations: Non-charitable trusts and foundations (not registered under Section 12A) may open FD accounts as per Odisha Gramya Bank criteria.

Tax Implications on Odisha Gramya Bank Short Term FD

Any interest gained from Odisha Gramya Fixed Deposits is taxable under the Income Tax Act. If you opt for a non-cumulative FD, interest payouts (monthly/quarterly/half‑yearly/yearly) are taxable in the year of receipt. For cumulative FDs, interest becomes taxable at maturity together with the principal. Moreover, if the total interest from all fixed deposits in a financial year goes beyond ₹50,000 for the general public and ₹1,00,000 for senior citizens, Odisha Gramya Bank may deduct Tax Deducted at Source (TDS). Always declare FD interest in your ITR to avoid compliance issues.

Key Takeaways

The Odisha Gramya Bank short term FD has a competitive interest rate of up to 6.75% and 6.25% p.a. to the senior citizens and the general investor, respectively. The minimum deposit requirement of ₹100 and the option of a flexible tenure of 7-12 months make this FD a great choice among those who would want to invest in a secure and low-risk investment. The scheme also provides various interest payout options, online booking, liquidity, and early withdrawal (penalised after 3 months).