Ujjivan Small Finance Bank Ltd is the latest small finance bank (SFB) to start operations in India. As of now, there are five SFBs—Capital Small Finance Bank Ltd, Suryoday Small Finance Bank Ltd, Equitas Small Finance Bank Ltd, Utkarsh Small Finance Bank Ltd and Ujjivan Small Finance Bank Ltd. Mint Money looks at the various retail products that these banks offer.
Deposits
Interest rates on savings accounts vary for these newly launched banks. Suryoday SFB offers 6.25-7.25% depending on the amount you leave in the savings account. For instance, for a balance up to Rs1 lakh, you will get 6.25% per annum; 7.25% for balance over Rs1 lakh but up to Rs10 lakh and 7.00% on balance over Rs10 lakh.
Equitas SFB is offering 6-7.50% per annum on savings accounts. Utkarsh SFB is offering 6% for any amount. Both Ujjivan and Capital SFBs are offering 4%, which is in line with large commercial banks. “We believe savings account is not interest rate sensitive. Hence, we have left is at 4%. We give other benefits on savings account such as no minimum balance. In case of FDs, people are rate sensitive. We will keep it 1% higher than the average industry rate,” said Samit Ghosh, managing director and chief executive officer, Ujjivan Small Finance Bank.
