FD Interest Rate: When it comes to investments, the first thing that comes to mind is a Fixed Deposit (FD). ​​The RBI has cut the repo rate by a total of 1.25 percent this year, bringing it down to 5.25 percent. Generally, a lower repo rate leads to a decrease in interest rates on both loans and FDs. Despite this, some banks are still offering attractive returns on FDs. Union Bank of India’s FD scheme is particularly noteworthy, where you can earn a fixed interest of up to ₹22,239 by investing just ₹1 lakh.

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Union Bank’s Special Offer on 400-Day FD

Union Bank of India is a government-owned bank that offers interest rates ranging from 2.75% to 7.05% on FDs. You can open an FD with this bank for a period ranging from 7 days to 10 years. The bank is offering a special 400-day FD scheme with an interest rate of 6.30% for general citizens, 6.80% for senior citizens, and up to 7.05% for super senior citizens.

In addition, Union Bank is also offering good returns on 3-year FDs. For this period, general citizens receive an interest rate of 6.00%, senior citizens receive 6.50%, and super senior citizens receive 6.75%.

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How much return will you get on investing ₹1 lakh?

If a general citizen invests ₹1 lakh in a 3-year FD with Union Bank, they will receive approximately ₹1,19,562 at maturity, including ₹19,562 in interest. For senior citizens, the maturity amount will be approximately ₹1,21,341, which includes ₹21,341 in interest. If a senior citizen deposits ₹1 lakh for 3 years, they will receive approximately ₹1,22,239 at maturity. This includes a fixed interest of ₹22,239.