New Delhi :
Unity Small Finance Bank (SFB) has joined the rivals in hiking the deposit rates and will offer up to 9.5 percent interest on fixed deposits to senior citizens.
The bank will offer 9.5 percent interest rate for senior citizens for tenure of 1,001 days, while regular depositors will earn 9 percent for the same duration, the bank said in a release on February 16.
For deposits in tenures of 181–201 days and 501 days, the bank will offer interest rate of 8.75 percent to regular depositors.
For savings account holders, Unity Bank is offering an interest of seven percent for deposits higher than Rs 1 lakh and 6 percent for deposits up to Rs 1 lakh, the bank said.
Rate hikes are effective February 15. The bank has last hiked the deposit rate in November 2022.
Unity Bank is a scheduled commercial bank promoted by Centrum Financial Services Ltd, with Resilient Innovations Pvt Ltd as a joint investor.
Over the last few months, most banks have increased their deposit rates after the Reserve Bank of India (RBI) hiked repo rate to tame higher inflation.
On February 9, Kotak Mahindra Bank increased the rate on fixed deposits across tenures by up to 25 basis points.
For senior citizens, the bank now offers up to 7.6 percent per annum for deposit amounts of up to Rs 2 crore.
Over the last few months, most banks have increased their deposit rates by 1-2 percent.
On February 6, Bandhan Bank raised the deposit rate by up to 50 basis points, which takes the effective rate for senior citizens to 8.5 percent.
Similarly, a clutch of other banks, including the State Bank of India (SBI), HDFC Bank, and Kotak Mahindra Bank have raised their FD interest rates.
SFBs like AU, Jana and Equitas hiked their interest rates too. The trend is likely to continue, as banks strive to bridge the gap between credit and deposit growth.