Jana Small Finance Bank (SFB) revised its fixed deposit (FD) interest rates during the week ending December 14, 2024. This is the second time in this month this bank has revised its rates. While the repo rate cut expectation was taking rounds for some time, the Reserve Bank of India (RBI) in the December monetary policy committee meeting maintained the ‘neutral stance’ and kept the repo rate unchanged at 6.5 per cent. Considering inflation and other factors it reduced the cash reserve ratio (CRR) requirement by 50 basis points. These all were to tackle inflation and at the same time induce liquidity in the market to support growth.

Now, as SFBs are also allowed to offer pre-sanctioned credit lines through the UPI facility, these banks need more funds, and revising deposit rates could likely be a reason in this direction.

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According to Murthy Nagarajan, head-fixed income, Tata Asset Management, “RBI has been closely working with the government to control CPI inflation and increase the potential growth rate of the economy. Given headwinds in the global economy of lower growth due to tariffs, RBI is expected to change its stance to accommodative and cut rates in the coming months as the CPI Inflation reading comes near the 4 per cent range in the fourth quarter of this fiscal year. This may give room for RBI to cut rates by 50 to 75 basis points in this rate cut cycle.”

“Investors should increase their allocation to duration products and lock into higher maturity segments to take advantage of a fall in rates in the coming months”, says he.

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Here are the latest revised FD rates Jana SFB offers to senior citizens.

Jana Small Finance Bank:

The bank revised its FD rates last week and again this week on December 12, 2024. It has removed 484 days of singe tenure and revised rates offering a maximum of 8.75 per cent to seniors and 8.25 per cent to the general public.

The bank offers different interest rates on FDs of ‘less than Rs 10 lakh’ and ‘equal to or more than Rs 10 lakh’. Here are details of interest rate for both these categories:

Less Than Rs 10 Lakh FDs:

• 8.00 per cent for 181 days to 364 days

• 8.75 per cent for 365 days

• 8.75 per cent for 366 days to 459 days

• 8.25 per cent 460 days to 483 days

• 8.75 per cent for 484 days to 3 years (1095 days)

• 7.75 per cent for more than 3 years to less than 5 years

• 8.20 per cent for 5 years (1825 days)

• 7.00 per cent for more than 5 years to 10 years.

For less than Rs 10 lakh FDs, the bank offers an additional 0.50 per cent to seniors on all FDs except ‘460 days to 483 days’ and ‘5 years’ tenure. 

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Equal To Or More Than Rs 10 Lakh FDs:

• 8.00 per cent for 181 days to 364 days

• 8.75 per cent for 365 days to 459 days

• 8.35 per cent for 460 days to 483 days

• 8.75 per cent for 484 days to 3 years (1095 days)

• 7.75 per cent for more than 3 years to less than 5 years

• 8.20 per cent for 5 years (1825 days)

• 7.00 per cent for more than 5 years to 10 years.

For these FDs, the additional interest is available starting from 181 days to all tenures up to 10 years except ‘460 days to 483 days’ and ‘5 years’ tenure.