Uttarakhand Gramin Bank Short Term FD

What is Uttarakhand Gramin Bank Short Term FD?

Uttarakhand Gramin Bank Short Term FD is a type of fixed deposit designed for short investment horizons, allowing you to park surplus funds or meet specific short-term goals with a guaranteed return at an agreed interest rate. The official Uttarakhand Gramin Bank site displays Fixed Deposits across several tenures, with short-term FDs commonly covering up to 1 year in this bracket for you.

These deposits are suitable for retail depositors looking for low-risk options that lock in their funds for a defined period. You receive regular interest returns, and higher interest rates apply for senior citizens, who receive an additional interest benefit on eligible tenures.

Uttarakhand Gramin Bank Short Term FD Interest Rates

Uttarakhand Gramin Bank Short Term FD provides a reliable avenue for short-term investments, with tenures from 7 days up to 1 year, ensuring assured returns and a clear maturity value. For deposits less than ₹2 crore, the FD interest rates vary depending on tenure and depositor category, with senior citizens earning slightly higher returns than the general public. These Uttarakhand Gramin Bank FD interest rates support the gradual growth of your savings while allowing ease in short-term planning.

*Uttarakhand Gramin Bank Short Term FD rates w.e.f. 01 August, 2025

Key Features of Uttarakhand Gramin Bank Short Term FD

Uttarakhand Gramin Bank Short Term FD offers several important features aimed at providing security, adaptability, and consistent returns:

• Short Tenure Flexibility: You can open a Fixed Deposit with tenures ranging from 7 days to 1 year, allowing short-term planning for your financial needs.
• Minimum Deposit Requirements: FDs can be opened with modest minimum deposits, making them accessible for most savers.
• Assured and Fixed Returns: The interest rate is fixed at the time of opening, providing a predictable maturity amount.
• Premature Withdrawal Facility: You can close your FD before maturity with applicable penalties, giving access to funds in emergencies.
• Loan or Overdraft Against FD: The bank allows a loan or overdraft facility against your FD without breaking it, providing liquidity.
• Sweep-In and Sweep-Out Option: Eligible schemes offer automatic fund transfer between savings and FD accounts to optimise returns.
• Auto-Renewal Facility: At maturity, fixed deposits may renew for the same tenure at current rates unless you provide other instructions.

How to Invest in a Uttarakhand Gramin Bank Short Term FD

You can invest in a short term FD in Uttarakhand Gramin Bank online or at a branch to secure funds at a fixed interest rate for short-term savings:

Online Method

Use the internet or mobile banking to create your FD. Steps include:

• Log In: Use your UGB internet or mobile banking to access your account.
• Select FD Booking: Please choose the Fixed Deposit option.
• Enter Details: Select tenure, deposit amount, and interest payout.
• Review Terms: Confirm interest rate and maturity instructions.
• Authorise Payment: Debit the amount from your account.
• Receive Digital Receipt: A confirmation receipt is issued instantly.

Offline Method

Proceed to a branch to commence your FD. Steps include:

• Branch Visit: Go to the nearest UGB branch.
• Submit Application: Fill out the FD form with details.
• KYC Verification: Provide identity and address proofs.
• Fund Deposit: Deposit the chosen amount.
• Processing: Bank staff create the FD.
• Physical Receipt: Collect the printed FD receipt.

Eligibility Criteria for Uttarakhand Gramin Bank Short Term FD

To invest in a Uttarakhand Gramin Bank Short Term FD, you must meet the following eligibility conditions:

• Resident Eligibility: Resident customers, as permitted under RBI and bank guidelines, can open a Short Term FD.
• Account Requirement: A savings or current account with the bank is often required for easy funding and payout processes.
• Minimum Age: Applicants have to comply with the legal age requirement to invest independently.
• Minor FD Facility: Minors may open FDs only through a parent or a legal registered guardian.
• KYC Compliance: Valid KYC documents such as Aadhaar and PAN are mandatory.
• Minimum Deposit: A minimum deposit amount, as decided by the bank, applies.
• Senior Categories: Senior and super senior citizens are eligible for preferential interest rates.

Tax Aspects of Uttarakhand Gramin Bank Short Term FD

Interest accrued on a Uttarakhand Gramin Bank Short Term FD is treated as “Income from Other Sources” according to the Income Tax Act. It must be included in your income tax return for the relevant financial year. The bank deducts Tax Deducted at Source (TDS) if the total interest earned in a year exceeds the prescribed limits.

For the general public, TDS is applicable when annual FD interest crosses ₹50,000, while for senior citizens, the threshold is higher at ₹1,00,000, as per prevailing tax rules. You may submit Form 15G (for depositors under 60 years) or Form 15H (for senior citizens) to prevent TDS, provided your total income stays below the taxable limit. If TDS has not been deducted, you are still required to disclose FD interest while filing your income tax return.

Key Takeaways

Uttarakhand Gramin Bank Short Term FDs provide secure choices for limited durations, offering tenures between 7 days and 1 year. Currently, general customers earn FD interest rates of up to 6.25%, while senior citizens receive up to 6.75%. They offer assured returns and preserve liquidity for short-term financial purposes. You should review FD interest rates, tenures, and features across banks to confirm the deposit meets your financial requirements.