8.75% FD interest rate: Ujjivan Small Finance Bank hikes fixed deposit rates for all customers

8.75% FD interest rate: Ujjivan Small Finance Bank hikes fixed deposit rates for all customers

Ujjivan Small Finance Bank has revised the interest rate on fixed deposits, with the highest interest rate for regular customers, NRO rising up to 8.25% for 12 months and 80 weeks (560 days). The highest interest rate for senior citizens has risen to 8.75% for the same tenure.

The bank's Platina FD scheme's customers would get an additional interest rate of 0.20% which is applicable for deposits above Rs 15 lakh and below Rs 2 crore.

Talking about the hike in FD rates, Ittira Davis, Managing Director and Chief Executive Officer of Ujjivan SFB, said, "We are pleased to announce the increase in our fixed deposit interest rates for the 12-month tenure and the extension of the higher rate will benefit our clients with short-term deposit needs. This complements our overall strategy of building our granular deposit base, as a retail mass market bank.”

The current rate of interest rate for FDs stands at 6.50 per cent, whereas the proposed ROI is 8.25%.

Platina FD, which would attract an additional interest rate of 0.20%, is non-callable, i.e. - it doesn't provide the facility of partial and premature withdrawal.

However, the bank provides monthly, quarterly, and at-maturity interest pay-out options, while the Tax Saver Fixed Deposits come with a five-year lock-in period.

Ujjivan Small Finance Bank began its operation in February 2017 and the bank currently serves over 76 lakh customers. It operates through its 639 branches that help in bridging the gap of financial services unavailability in regional areas.