Ujjivan Small Finance Bank announced that it has raised interest rates on fixed deposits (FDs) across various tenures. For the general citizen up to 60 years, the bank will now offer an interest rate of 6.6 per cent for deposits for tenures of 19 months, one day to 24 months.
For 12 months tenure, the interest rate has been increased to 6.5 per cent, the bank said in a release today. The previous rates for these tenures were six per cent. The new rates are applicable from December 9, 2021.The move is aimed at mobilising deposits among the existing and new customers.
The small finance bank said it will offer additional 75 basis points or 0.75 per cent interest to senior citizens across all tenures. For 19 months, one day to 24 months tenure, the interest rate is 7.35 per cent, while for 12 months tenure, the bank is now offering 7.25 per cent, it added. Earlier rates on these deposits yielded 6.5 per cent each.
A senior citizen investing Rs 1,00,000 for 24 months at 7.35 per cent can earn returns up to Rs 1,15,681 at maturity. Ujjivan small finance bank allows quarterly, half-yearly, annually, and at maturity interest pay-out options. It also offers premature closure and partial withdrawal facility, with applicable charges.
The revision in the interest rates complements the seven per cent interest rate offered in savings account on incremental balances above Rs 1 lakh to up to Rs 25 lakh, said the lender.
"This makes it one of the most attractive and competitive interest rates offered in the sector, on both term deposits and savings accounts," Ujjivan small finance bank said.
On Thursday, December 9, shares of Ujjivan Small Finance Bank settled 0.26 per cent higher at Rs 19.20 apiece on the NSE.