Ujjivan Small Finance Bank has raised interest rate on fixed deposits by up to 1.5 %.
The new rates have come into effect from 9 August 2022.
The bank said that on the occasion of the 75th year of India's Independence, it has increased the rate on fixed deposits by 30-150 basis points (or 0.3-1.50%) across different tenures.
Introducing tenures of 75 weeks (525 days) and 75 months, Ujjivan SFB said both carry the highest rate of 7.5% per annum.
For an individual, investing Rs1 lakh for 75 weeks at 7.5% can earn returns up to Rs1,11,282 at maturity. Likewise, senior citizens for Rs1 lakh for 75 weeks at 8.25% can earn returns up to Rs1,12,466 at maturity.
The 990 days tenure too carries the same interest rate, up from 7.20% earlier.
The additional rate for senior citizens is now revised to 0.75% from 0.50%, the bank said.
The new rates are applicable on deposits below Rs2 crore.
The lender said it will offer monthly, quarterly and at maturity interest pay-out options.
Ujjivan SFB said these new rates are also applicable on tax saver fixed deposits carrying a lock-in period of five years.
Ujjivan SFB Chief Business Officer Carol Furtado said this will help grow customers' savings through the enhanced interest rates on fixed deposits.
This will also serve customers' interest in the present macroeconomic developments, she said.