Important Financial Changes to be Mindful of in August: Altered Fixed Deposit Tenures and Credit Card Regulations


As the month of August begins, the financial landscape witnesses several significant changes in the field of savings and investment. Banks and government agencies are introducing alterations that can impact individuals’ financial decisions. Being aware of these changes beforehand can help prevent potential financial losses and optimize one’s financial strategies. In this essay, we will explore in detail the five major changes taking place in August, focusing on credit card modifications, fixed deposit schemes, income tax penalties, and bank holidays. Understanding these changes will empower individuals to make informed decisions and navigate the financial landscape more effectively.

Credit Card Changes

In August, Axis Bank, one of the prominent players in the banking sector, brings about certain changes to its credit card offerings, particularly affecting Flipkart Axis Bank Credit Card users. Unfortunately, these changes are not in favor of the cardholders, as the bank decides to reduce cashback and incentive points on transactions made using the Flipkart Axis Bank credit card.

Effective from August 12, cardholders will receive 1.5 percent cashback solely for travel-related expenses made through Flipkart. However, the cashback option will no longer be available for transactions involving government services, fuel expenses, gift cards on Flipkart and Myntra, EMI transactions, and other specific categories. This change may influence the spending patterns of cardholders who previously enjoyed cashback benefits on various purchases.

SBI Amrit Kalash Fixed Deposit

The State Bank of India (SBI), a major public sector bank, has been offering the SBI Amrit Kalash Fixed Deposit, which has garnered attention for its high-interest rates. However, this fixed deposit is set to mature in August, prompting depositors to consider alternative investment options.

The SBI Amrit Kalash Fixed Deposit offers an attractive interest rate of 7.10 percent for regular depositors and an even higher rate of 7.60 percent for non-regular depositors for a period of 400 days. The revised deadline for new investments in this scheme is until August 15, making it a critical decision point for potential investors. Individuals seeking a safe and rewarding investment opportunity should carefully evaluate their financial goals and risk tolerance before considering this or other investment avenues.

Indian Bank Special Fixed Deposit

Indian Bank, a renowned public sector bank in India, offers special fixed deposit schemes that cater to varying investment needs. Two of its fixed deposits are set to mature on August 31, prompting investors to reassess their investment strategies.

The ‘IND Super 400 Days’ fixed deposit offers competitive interest rates of 7.25 percent for regular depositors, 7.75 percent for senior citizens, and an impressive 8 percent for super senior citizens, all for a tenure of 400 days. Investors can start with a deposit amount as low as Rs. 10,000, making it accessible to a wide range of investors.

Another scheme, the ‘IND Supreme 300 Days’ Fixed Deposit, was launched on July 1 and will also mature on August 31. This deposit offers interest rates ranging from 7.05 percent to 7.80 percent, with a minimum deposit of Rs. 5,000. Both these schemes offer attractive rates for varying investment durations, making them worthy of consideration for risk-averse and goal-oriented investors.

Income Tax Penalty

As individuals strive to meet their financial obligations, the Income Tax Act imposes strict deadlines for filing income tax returns. Taxpayers are required to file their returns by July 31 each year. Failure to do so results in penalties that will be enforced starting from August 1.

The Income Tax Act’s Section 234F stipulates the penalties for late filing, and they vary based on the taxpayer’s annual gross income. Taxpayers earning less than Rs. 5 lakh will face a penalty of Rs. 1,000, while those earning more than Rs. 5 lakh will incur a higher penalty of Rs. 5,000. This penalty can be avoided by filing the tax return by December 31. To avoid unnecessary financial burdens, individuals must diligently adhere to the income tax filing deadlines and maintain accurate financial records throughout the year.

IDBI Bank Amrit Mahotsav FD

IDBI Bank, another prominent player in the banking sector, offers the Amrit Mahotsav Fixed Deposit, an investment avenue with a maturity date of August 15. This fixed deposit offers an attractive interest rate of 7.60 percent. Moreover, an option of a 444-day tenure is also available, offering an even higher interest rate of 7.65 percent. For those opting for the non-callable option, the interest rate is a lucrative 7.75 percent.

The deadline to invest in this scheme is August 15, presenting potential investors with a time-sensitive opportunity to earn attractive returns on their investments. As with any investment decision, individuals must evaluate their financial goals and risk appetite before investing in this fixed deposit.

Bank Holidays

Throughout the month of August, numerous bank holidays are observed in India, affecting regular banking operations. These holidays include the second and fourth Saturdays, Sundays, and other specific days. Additionally, all banks in India remain closed on August 15 in celebration of Independence Day.

Individuals and businesses must plan their financial activities accordingly during these holidays to ensure smooth financial transactions and avoid any inconvenience.


In conclusion, the month of August brings several significant changes in the financial field concerning savings and investment. Axis Bank’s credit card changes may impact Flipkart Axis Bank Credit Card users, prompting them to reconsider their spending patterns. The maturity of fixed deposits in SBI and Indian Bank urges investors to evaluate alternative investment options that align with their financial goals. Taxpayers need to adhere to the income tax filing deadlines to avoid penalties. Lastly, individuals must be mindful of bank holidays while planning their financial activities. Staying informed about these changes empowers individuals to make prudent financial decisions and navigate the financial landscape effectively.

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