Ujjivan Small Finance Bank increases fixed deposit interest rates #CashNews.co

Ujjivan Small Finance Bank has announced an increase in interest rates on its fixed deposits. The new rate for a 9-month tenure is set at 7.5%. Senior citizens will benefit from an additional 0.50% on regular fixed deposit rates.

For general customers, Ujjivan continues to offer the highest interest rate of 8.25% for a 12-month tenure. Senior citizens will receive a rate of 8.75% for the same duration.

Additionally, the bank offers Platina deposits for both individual and non-individual customers.

These deposits earn an extra interest rate of 0.20%.
Among small finance banks, Ujjivan and Jana Small Finance Bank lead with an interest rate of 8.25% on one-year fixed deposits. Equitas Small Finance Bank closely follows with a rate of 8.2%.

Utkarsh Small Finance Bank offers an 8% interest rate, while Unity Small Finance Bank provides 7.85%.

AU Small Finance Bank has a lower rate of 7.25% for one-year deposits.

While investing in fixed deposits at small finance banks may seem risky to some, it’s essential to note that these deposits are insured.

Here are key factors to check before investing:

• Compare rates among banks for the best returns.
• Ensure the tenures align with your financial goals.
• Research the bank’s stability and credit ratings.
• Understand any penalties for early withdrawals.
• Check if the bank is covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), protecting deposits up to ₹5 lakh.