THIS bank is raising interest rates up to 7.25%: Check out details here | Personal finance news
New Delhi: Interest rates on term deposits (FD) at Ujjivan Small Finance Bank have been raised across the board. The bank will now offer an interest rate of 6.6% on deposits with terms ranging from one day to 24 months to ordinary citizens aged 60 and over.
The interest rate was raised to 6.5% for a 12-month term, according to a statement released by the bank today. Previously, the rates for these tenures were 6%. The revised rates will come into effect on December 9, 2021. This measure aims to increase the mobilization of deposits with existing and new consumers.
Seniors will receive an additional 75 basis points (0.75%) interest for all terms, according to the small funding bank. The interest rate for 19 months, from a day to 24 months, is 7.35%, while the bank is currently offering 7.25% for 12 months, according to the bank. These deposits had previously earned 6.5% each.
At 7.35%, a senior who invests Rs 100,000 for 24 months can earn up to Rs 1,15,681 at maturity. Interest can be paid quarterly, semi-annually, annually, or at maturity from Ujjivan’s small financial bank. It also has the possibility of early closing and partial withdrawal, both chargeable.
According to the lender, the increase in the interest rate complements the 7% interest rate offered in savings accounts on additional balances exceeding Rs 1 lakh up to Rs 25 lakh.
“On term deposits and savings accounts, this makes them one of the most attractive and competitive interest rates in the industry,” said Ujjivan’s small financial bank.