Ujjivan Small Finance Bank raises interest rates on FDs of up to Rs 2 cr

Customers of Ujjivan Small Finance Bank (SFB) can now earn as much as 6.75-7.50 per cent interest on their fixed deposits of up to Rs 2 crore, as the lender has increased the deposit rates with effect from Friday, according to a statement.

The revised interest rates are applicable on fixed deposits of up to Rs 2 crore across various tenures. The revised rates offer the highest interest of 7.5 per cent for senior citizens.

The new rates come into effect from December 31, 2021, the bank said in a statement on Friday.

Deposits for 990 days tenure for general citizens will earn interest at 6.75 per cent, up from 6.60 per cent earlier. For the 19 months 1 day tenure, the bank now offers 6.60 per cent interest.

For senior citizens, 990 tenure deposits will fetch 7.50 per cent from 7.35 per cent earlier, while the 19 months 1 day tenure deposits will get an interest of 7.35 per cent.

The lender said these interest rates will also be offered on tax saver fixed deposits. However, they carry a lock-in period of five years.

"A senior citizen investing Rs 1 lakh for 990 days at 7.5 per cent can earn returns up to Rs 1,22,314 at maturity. For general citizens investing Rs 1 lakh for 990 days at 6.75 per cent can earn up to Rs 1,19,895.

"This makes Ujjivan SFB interest rates on term deposits among the most attractive and competitive in the sector," the bank said.