Ujjivan SFB's fixed deposit schemes
I have read that Ujjivan Small Finance Bank has launched a fixed deposit that can be opened through the Google Pay app. Is it better than the Platina Fixed Deposit? - Gayathri, Vizianagaram
Ujjivan Small Finance Bank introduced Platina Fixed Deposit in 2022, where depositors are entitled to get 15 basis points higher rate of interest in addition to the regular Ujjivan Small Finance Bank term Deposit rates.
Platina deposits are available for Trust, Association, Society and Club (TASC), Non-individuals excluding the Financial Institutions Group (FIG) and for all individuals, including Non-Resident Indian customers. However, the senior citizen's additional rate of interest will not be applicable for Platina deposits.
Platina Fixed Deposit Features:
♦ Ujjivan Small Finance Bank customers can book Platina Deposit for a minimum period of one year (12 months) to a maximum of five years (60 months).
♦ The minimum amount for booking Platina Deposit is Rs 15 lakh, and the maximum amount of the deposit is Rs 2 crore.
♦ Monthly, quarterly and at-maturity interest pay-out options are available.
♦ Auto-Renewal facility is not available for the Platina Deposit scheme.
♦ Ujjivan Small Finance Bank Platina Fixed Deposit is a non-callable deposit instrument, meaning that depositors cannot make premature or partial withdrawals from this retail term deposit scheme.
♦ Ujjivan Small Finance Bank Customers will get an additional interest of 15 basis points in addition to the regular Ujjivan bank term Deposit rates.
♦ Ujjivan Small Finance Bank is a DICGC-insured lender.
Ujjivan Small Finance Bank's regular Fixed Deposits duration ranges from 7 days to 10 years. Ujjivan Small Finance Bank pay up to 0.75 per cent higher interest to senior customers for any tenure.
Regular Fixed Deposit Features:
♦ Minimum amount - Rs 1,000 and in multiples of Rs 100 thereof
♦ The fixed deposit's minimum period is seven days, and the maximum is ten years.
♦ Quarterly, half-yearly, annually and at maturity are the Interest payment options.
♦ Up to 0.75 percent per annum additional rate of interest on deposits for Senior Citizens
♦ There is a discounted interest rate for a monthly interest pay-out option.
♦ Both Premature closure and partial withdrawal facilities are available.
♦ The interest rate paid for fixed deposits varies according to tenure and amount.
In 2021, Equitas Small Finance Bank launched a unique digital fixed deposit scheme on Google Pay app in an instant, much like buying a shirt from an online marketplace. This initiative enables customers to book fixed deposits (FDs) on Google Pay app without having to open a savings account (SB account) with Equitas Bank. Equitas Bank's software technology is integrated with the Google Pay platform.
The offering was made possible by connecting application programming interfaces (APIs) built by fintech infrastructure provider Setu. This facility is available for Google Pay users who access the app from Android. All Google Pay app users are allowed to book fixed deposits from the comfort of their homes, ensuring an easy, safe and hassle-free experience.
On maturity, the principal and interest of the fixed deposit go directly to the Google Pay user's existing bank account, which could be in any bank or branch in India. However, the partnership between Equitas Small Finance Bank Ltd and the payments application Google Pay to garner retail deposits has been suspended less than a year after it was launched.
Equitas Small Finance Bank Ltd has introduced the 'Selfe Fixed Deposit' to open a fixed deposit online with the help of an Aadhar Number and PAN in less than three minutes. Depositors can Fund the 'Selfe Fixed Deposit' directly through UPI from any bank account.
The 'Selfe Fixed Deposit' holders can enjoy returns up to 7.5 per cent per annum for a year. Depositors can invest as low as Rs 5,000 up to a maximum of Rs. 90,000 with Selfe Fixed Deposit and choose tenure between 7 days and 365 days. On maturity, the Principal and Interest component will be credited to the depositor's designated bank account. Equitas Small Finance Bank pays 0.50 per cent additional interest on 'Selfe Fixed Deposit' for Senior Citizens.
One can open 'Selfe Fixed Deposit' without a Savings Account with Equitas Small Finance Bank. There is no premature withdrawal penalty if Selfe FD has completed tenure of more than 180 days. There is no premature withdrawal penalty at all for Senior Citizen Selfe Fixed Deposit. All deposits in Equitas are covered by a deposit guarantee of up to Rs 5 lakhs per depositor. NRIs and minors are not eligible to open the Selfe Fixed Deposit. Indian residents 18 and above with valid PAN and a mobile number linked to Aadhar only can open Selfe Fixed Deposit.
(The author is a SEBI licensed Research Analyst. The alumnus of the Indian Institute of Foreign Trade (IIFT), he had held leadership roles at National Geographic, Reliance Radio Television Luxembourg, STAR TV)