Ujjivan Small Finance Bank raises interest rate on deposits

Ujjivan Small Finance Bank on Thursday said it has raised interest rates on deposits 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, Ujjivan SFB said in a release.

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The previous rates for these tenures were 6 per cent.

The new rates are applicable from December 9, 2021, the bank said.

The SFB said it will offer additional 75 basis points (0.75 per cent) interest to senior citizens across all tenures. For 19 months, one day to 24 months tenure, the interest rate is as high as 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.

"As the table suggests, 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 SFB 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 attractive 7 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 SFB said.