FD investors used to get 9.2% in this small finance bank before it was merged. What changes for FD investors, loan customers?
fixed deposits (FDs) have been in a sweet spot for a few years now. The interest rates of FDs had gone up and small finance banks (SFBs) were offering 9% to 9.5%, which in many cases were more attractive than the offerings of public and private sector banks. Many have opted for such FDs.
But now these FD investors should take note of a development at a prominent player in the sector: Fincare Small Finance Bank, which used to offer 9.21% to senior citizens on FDs maturing in 750 days as on March 27, 2024, according to Paisabazaar.com, recently merged with AU Small Finance Bank, the largest SFB in the country in asset size. This is the first such merger in the small finance bank sector, and it came into effect on April 1, 2024.
Now, customers should be aware of what will happen to the FDs they had opened in Fincare SFB before the merger? Will they be eligible for the deposit insurance protection of up to Rs 5 lakh, including principal and interest? Will the IFSC codes change after the merger? ET Wealth Online presents an FAQ on how the Fincare-AU Small Finance Bank merger will impact customers.
1) I opened an FD at an interest rate of 8.71% for a tenure of three years in Fincare SFB on February 21, 2024. The rate was lower at AU Small Finance Bank. Will I continue to fetch a higher interest rate on my Fincare FD after the merger?
Yes. You will get the interest rate at which you had booked your fixed deposit till the time your deposit matures.
2) When my Fincare FD matures after the merger, will I be able to renew
