This Bank Hikes Term Deposit Interest Rates to up to 7.25%, Know Details

Term deposits (TDs) remain one of the most popular financial instruments across age groups which offer guaranteed returns. Existing and potential customers can invest money in these schemes for a specific period, ranging from seven days to 10 years. Small finance banks generally offer better interest on such deposits than traditional banks, both in the long term and short-term investments. Senior citizens usually prefer opting for the FD/TD route as it offers them a safe option to park their money post retirement to gain good returns in terms of steady earnings.

Banks usually pay a higher rate of interest to senior citizens compared to the general public on such accounts/deposits.

Bengaluru-based Ujjivan Small Finance Bank that offers a spectrum of financial services including fixed deposits, term deposits, tax-saving deposits and general banking services among others, has raised the interest rates on their TDs. Ujjivan SFB has revised interest rates with effect from December 9, 2021 on TDs. The move is aimed at mobilising deposits among existing and new customers.

The private lender’s new rates are applicable on fixed deposits of up to Rs 2 crore across various tenures. According to the revised rates mentioned on the bank’s official website, regular customers (aged up to 60 years) with a deposit of less than Rs 2 crore can avail an interest rate of 6.5 per cent for deposits maturing in 12 month term. Additionally, they now can avail an interest rate of 6.6 per cent on tenure of 19 months and 1 day to 24 months.

The bank has also announced an additional 75 basis points for senior citizens across all tenures. For 19 months and 1 day to 24 months tenure, the interest rate is as high as 7.35 per cent for the elder population. For the 12 month-tenure, the bank is now offering 7.25 per cent to senior citizens. Additionally, the lender is allowing quarterly, half-yearly, annually, and at maturity interest pay-out options. It is also offering premature closure and partial withdrawal facility, with applicable charges.

Furthermore, the revision in the interest rates complements the bank’s attractive 7 per cent interest rate offered on Savings Account for incremental balances above Rs 1 lakh to up to Rs 25 lakh.

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