Ujjivan Small Fin Bank raises interest rate on term deposits up to 1.5%

Ujjivan Small Finance Bank raised the interest rate on term deposits to 1.5%.

The new rates came into effect from August 9, 2022.

The bank said that on the occasion of the 75th anniversary of India’s independence, it had raised the rate on fixed deposits by 30 to 150 basis points (or 0.3 to 1.50%) on different mandates.

Introducing terms of 75 weeks (525 days) and 75 months, Ujjivan SFB said the two had the highest rate of 7.5% per annum.

For an individual, investing Rs 1 lakh for 75 weeks at 7.5% can generate returns of up to Rs 1,11,282 at maturity. Similarly, seniors for Rs 1 lakh for 75 weeks at 8.25% can earn returns of up to Rs 1,12,466 at maturity.

The 990-day term also carries the same interest rate, down from 7.20% previously.

The additional rate for the elderly is now revised to 0.75% from 0.50%, the bank said.

The new rates are applicable on deposits below Rs 2 crore.

The lender said it will offer monthly, quarterly and maturity interest payment options.

Ujjivan SFB said these new rates also apply to fixed tax-saving deposits with a five-year lock-up period.

Ujjivan SFB’s commercial director, Carol Furtado, said this would help increase customer savings through improved interest rates on term deposits.

It will also serve clients’ interest in current macroeconomic developments, she said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Stephen V. Lee