The banking sector has been in a state of flux after the Reserve Bank of India (RBI) cut the repo rate by another 0.25% in December. The repo rate has fallen by a significant 1.25% so far this year, prompting most banks to revise their fixed deposit (FD) rates. Public sector giant Union Bank of India implemented its new interest rates effective December 5th. If you’re looking for a safe investment with excellent returns, Union Bank’s FD scheme could be a viable option. You can earn up to ₹14,325 by depositing just ₹1 lakh.
Union Bank of India’s New FD Rates
Union Bank, a public sector bank under the Central Government, is a public sector bank where your money is completely safe. You can open an FD account with the bank for a minimum of 7 days and a maximum of 10 years. Currently, the bank offers attractive interest rates ranging from 2.75% to 7.05%. The bank’s most notable scheme is the 400-day special FD, where customers receive the highest returns, ranging from 6.30% to 7.05%.
If you’re planning to invest for two years, Union Bank has set special rates for different age groups. For general citizens, the rate is 6.00% per annum. Senior citizens (60-80 years) are offered 6.50% interest. The biggest benefit is for those over 80, who are offered a return of 6.75%.
What will be the return on an investment of ₹1,00,000
If you invest ₹1 lakh in Union Bank’s 2-year FD scheme, the maturity amount is quite attractive depending on your age.
For general citizens:- If you are under 60 years of age, you will receive a total of ₹1,12,649 after 2 years at a rate of 6%. Your fixed interest will be ₹12,649.
For senior citizens:- Investors aged 60 to 80 will receive a maturity amount of ₹1,13,764 on an investment of ₹1 lakh at a rate of 6.50%, with an interest component of ₹13,764.
For super senior citizens:- Union Bank is offering an interest rate of 6.75% for senior citizens above 80 years of age. A deposit of ₹1 lakh here will yield a total of ₹1,14,325 after 2 years, with a net interest earning of ₹14,325.
Why choose Union Bank of India’s FD scheme
While many banks have lowered their interest rates below 5% amid continued repo rate cuts, Union Bank continues to offer competitive rates to its customers. As a public sector bank, investment risk is minimal, and you can choose from a tenure ranging from 7 days to 10 years, depending on your needs. Furthermore, the bank ensures financial independence for senior citizens and the elderly by offering higher interest rates. You can start your FD instantly through net banking, the mobile app, or by visiting your nearest branch.