Jana Small Finance Bank (SFB) has recently made revisions to its interest rates on fixed deposits, offering customers more attractive options to grow their savings. The bank’s new rates promise best-in-class returns, surpassing those of regular savings instruments.
With Jana SFB, customers have the freedom to start FDs with amounts as low as Rs 1,000. The revised interest rates apply to deposits below Rs 2 crore. Additionally, Jana SFB has set a minimum tenure of 1 year for NRE (Non-resident External) fixed deposits. However, no interest rate is payable for deposits prematurely withdrawn within the first year from the date of deposit.
When it comes to interest payouts, Jana SFB offers flexible options. Customers can choose between cumulative and non-cumulative payout frequencies, including monthly, quarterly, half-yearly, and yearly. This allows individuals to align their earnings with their financial goals and preferences.
The bank offers a special interest rate for senior citizens aged 60 years and above. The special rates are applicable only to FDs by resident Indians.
It’s important to note that interest is calculated based on the actual number of days in a year, considering 365 days for a non-leap year and 366 days for a leap year. Jana SFB offers 7.75% interest rate on FDs for 365 days to senior citizens while the interest rate for other customers is 7.25%.
Similarly, the senior citizens can receive interest rate of 9% on FDs for above 365 days and upto 2 years. The interest rate for other customers for the same duration of FDs has been fixed at 8.5%.
Interest calculations for non-cumulative fixed deposits are based on a simple interest basis. Payouts are scheduled according to the financial year, with monthly interest payouts on the 1st of each month, quarterly payouts on the 1st day of each quarter, and half-yearly and annual interest payouts on 1st October and 1st April, respectively.
Tax Saving FDs are also available, with a maximum limit of Rs 1.5 lakhs. Senior citizens can enjoy preferential rates for Tax Saver FDs. However, these deposits have a lock-in period of 5 years, during which no premature withdrawal is allowed. In the event of premature withdrawal, the interest rate will be adjusted to a lower rate based on the original tenure or the prevailing rate on the date of the deposit, minus the applicable premature withdrawal penal rate.
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