Fixed Deposit (TD) is one of the most popular financial instruments among age groups that offer guaranteed returns. Existing and potential customers can invest money in these schemes for specific tenures ranging from seven days to 10 years. Small finance banks usually offer better interest on such deposits as compared to traditional banks in both long term and short term investments. Senior citizens generally prefer to opt for the FD/TD route as it provides them a safe option to park their money post retirement to get good returns in terms of stable income.
Banks generally offer higher rate of interest on such accounts/deposit to senior citizens as compared to general public.
Bengaluru-based Ujjivan Small Finance Bank, which offers a spectrum of financial services including fixed deposits, fixed deposits, tax-saving deposits and general banking services among others, has raised interest rates on its TDs. Ujjivan SFB has revised the interest rates on TDS with effect from December 9, 2021. The move is aimed at mobilizing deposits between existing and new customers.
The new rates from the private lender are applicable on fixed deposits of up to Rs 2 crore across various tenors. As per the revised rates mentioned on the bank’s official website, regular customers with deposits of less than Rs 2 crore (up to 60 years of age) can avail an interest rate of 6.5 per cent for deposits maturing in a period of 12 months. Huh. Additionally, they can now avail an interest rate of 6.6 per cent on tenures ranging from 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 tenures ranging from 19 months and 1 day to 24 months, the interest rate for the larger population is as high as 7.35 per cent. The bank is now offering 7.25 per cent to senior citizens for a tenure of 12 months. Additionally, the lender is allowing quarterly, half-yearly, annual and interest payment options on maturity. It is also offering the facility of premature closure and partial withdrawal with applicable charges.
Further, the revision in interest rates complements the bank’s attractive 7 per cent interest rate offered on savings accounts for incremental balances ranging from Rs 1 lakh to Rs 25 lakh.
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