Ujjivan Small Finance Bank to offer 8.25% rate on one-year deposits

Ujjivan SFB allows monthly, quarterly, and at-maturity interest pay-out options. The tax saver fixed deposits comes with five years lock-in period.

Bengaluru-based Ujjivan Small Finance Bank (SFBs) on June 2 said it will offer a rate of interest of 8.25 per cent on one-year deposits to customers, making it one of the highest fixed deposit interest rates among all SFBs. Senior citizens will get a rate of 8.75 percent for the same tenure.

Ujjivan SFB allows monthly, quarterly, and at-maturity interest pay-out options. The tax saver fixed deposits comes with five years lock-in period.
Ittira Davis, Managing Director and Chief Executive Officer Ujjivan SFB, said, "We are pleased to announce the increase in our fixed deposit interest rates for the 12-month tenure and the extension of the higher rate will benefit our clients with short-term deposit needs. This complements our overall strategy of building our granular deposit base, as a retail mass market bank.”

According to a release, the bank would offer an additional interest rate of 0.20 percent under platina FD which is applicable for deposits above Rs.15 lakh and below Rs 2 crore, the bank said. "The Platina FD is non-callable, i.e. partial and premature withdrawal facility is not available in this scheme," said the Small Finance Bank.

FD rates go up

While interest rates on deposits has been going up, SFBs have been offering higher rate than regular commercial banks in  a bid to attract customers to fund their credit growth.

Jaipur-based AU Small Finance Bank offers 6.71 percent interest on FDs for a tenure of 12 months, and for senior citizens they are giving 7.21 percent. Varanasi-based Utkarsh Small Finance Bank offers 6.60 percent for general customers and 7.10 for senior citizens. Jalandhar-based Capital Small Finance Bank is giving 7.60 percent for 12 months period and 8.25 percent for senior citizens.