Term deposits (TD) remain one of the most popular financial instruments among age groups that offer guaranteed returns. Existing and potential clients can invest money in these programs for a specific period, ranging from seven days to 10 years. Smaller financing banks generally offer a better interest rate on these deposits than traditional banks, for both long-term and short-term investments. Seniors generally prefer to go the FD / TD route as it gives them a safe option to park their money after retirement in order to get good returns in terms of stable income.
Banks generally pay a higher interest rate to the elderly compared to the general public on these accounts / deposits.
Bengaluru-based Ujjivan Small Finance Bank, which offers a range of financial services including term deposits, term deposits, tax-saving deposits and general banking services, has increased rates interest of his tutorials. Ujjivan SFB revised its interest rates with effect from December 9, 2021 on TD. This operation aims to mobilize deposits from existing and new customers.
The new private lender rates are applicable on term deposits of up to 2 crore rupees on various money orders. According to the revised rates mentioned on the bank’s official website, regular customers (aged up to 60) with a deposit of less than Rs 2 crore can qualify for an interest rate of 6.5% for deposits. for a period of 12 months. In addition, they can now benefit from an interest rate of 6.6% over a period of 19 months and from 1 day to 24 months.
The bank also announced an additional 75 basis points for seniors for all terms of office. For 19 months and 1 day to 24 months of seniority, the interest rate is as high as 7.35 percent for the senior population. For the 12-month term, the bank is now offering 7.25 percent to seniors. In addition, the lender allows quarterly, semi-annual, annual and maturity interest payment options. It also offers the possibility of premature closing and partial withdrawal, with applicable fees.
In addition, the interest rate revision complements the bank’s attractive 7 percent interest rate offered on the savings account for additional balances above Rs 1 lakh up to Rs 25 lakh.
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