Ujjivan Small Finance Bank Cuts FD Interest Rates, Seniors Can Avail Up To 7.95 Per Cent

Ujjivan Small Finance Bank (SFB) revised its fixed deposit (FD) interest rates on August 5, 2025. While RBI kept the rates unchanged in the August 2025 monetary policy committee meeting, the already cut rate (1 per cent or 100 basis points) impact is still to be realised fully. Note that banks adjust their deposit and lending rates based on their liquidity position, the Reserve Bank of India’s (RBI’s) repo rate, and other internal factors.

On the RBI’s stand to keep the repo rate unchanged this time, Madhavankutty G, Chief Economist, Canara Bank, says, “Factors behind the policy status quo include the 100 bps repo cut since Feb 2025, ample liquidity from government spending and the phased 100 bps CRR cut, limited tariff impacts, adequate non-bank resource flows, and recognition of the limits of monetary policy on growth” and adds that “Future rate decisions will be data-driven, with growth likely taking precedence and Weighted Average Call Rate (WACR) will remain the operating target of monetary policy".

WACR is the rate at which a bank lends overnight to other banks.

Notably, in the last two months, several banks have revised and reduced their FD rates. Ujjivan SFB also revised its FD rates last month on July 17, 2025, and now has revised the rates again on August 5, 2025.

Amid the rate cut environment, here is what Ujjivan SFB offers to senior citizens and the general public.

Tenure                                                Senior Citizens           General Public                                                                    Interest Rates            Interest Rates 

Seven days to 29 days                          4.00%                               3.50%

30 days to 89 days                                4.65%                               4.15%

90 days to 179 days                              5.15%                               4.65%

180 days                                                  6.50%                               6.00%

6 months to less than 12 months      6.00%                               5.50%

12 months to less than 24 months            7.75%                               7.25%

24 months                                                    7.95%                               7.45%

24 months one day to 990 days                7.75%                               7.25%

991 days to 60 months                                7.70%                               7.20%

60 months one day to 120 months            7.00%                               6.50%

Source: Bank’s Website 

The bank offers senior citizens an additional 50 basis points of interest across tenures. After the last revision in July 2025, this SFB offered the highest of 8.10 per cent to seniors for ’24 months’ tenure, which is now reduced to 7.95 per cent for the same tenure. These FD rates are applicable for less than Rs 3 crore FDs. These are callable FDs, which means they can be withdrawn before maturity if required.