THIS bank raises interest rates to up to 7.25%: Check details here

New Delhi: The interest rates on fixed deposits (FDs) at Ujjivan Small Finance Bank have been hiked across the board. The bank will now offer a 6.6 percent interest rate on deposits with terms ranging from one day to 24 months to regular citizens aged 60 and up.

The interest rate has been raised to 6.5 percent 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 take effect on December 9, 2021. The move is intended to increase deposit mobilisation among existing and new consumers.

Senior citizens will receive an additional 75 basis points (0.75%) in interest across all tenures, according to the small finance bank. The interest rate for 19 months, one day to 24 months, is 7.35 percent, whereas the bank is presently offering 7.25 percent for 12 months, according to the bank. These deposits had previously yielded 6.5 percent each.

At 7.35 percent, a senior citizen investing Rs 100,000 for 24 months can earn up to Rs 1,15,681 at maturity. Interest can be paid out quarterly, half-yearly, annually, or at maturity at Ujjivan small finance bank. It also has a facility for early closure and partial withdrawal, both of which come with fees.

According to the lender, the interest rate increase complements the 7% interest rate offered in savings accounts on incremental balances exceeding Rs 1 lakh up to Rs 25 lakh.

"On both term deposits and savings accounts, this makes it one of the most attractive and competitive interest rates given in the business," Ujjivan small finance bank said.