Fixed Deposit Rates: Nowadays, everyone considers investing in government schemes. The most important reason for this is that they offer guaranteed returns and reduced risk. Union Bank of India is one of these banks, offering customers fixed deposits at good interest rates. Despite the recent RBI repo rate reduction and subsequent interest rate reductions by many banks, Union Bank continues to offer attractive interest rates on its FDs. The returns on 3-year and 5-year FDs, in particular, have proven beneficial for investors.
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Union Bank FD Interest Rates
FDs can be opened with Union Bank for tenures ranging from 7 days to 10 years. The bank currently offers interest rates ranging from 3.40% to 7.35%. This interest rate is the highest for a 3-year term, where general investors receive 6.60 percent, senior citizens 7.10 percent, and super senior citizens over 80 years of age receive up to 7.35 percent.
On the other hand, 5-year FDs offer 6.40 percent interest for general citizens, 6.90 percent for senior citizens, and 7.15 percent for super senior citizens. The bank has set different interest rates for all age groups to ensure senior citizens receive better benefits.
How much will you get on ₹2 lakh?
If a general citizen deposits ₹2 lakh in a 5-year FD, they will receive a total of ₹2,74,729 at maturity. This includes ₹74,729 in interest.
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This return becomes even more attractive for senior citizens. A senior citizen depositing ₹2 lakh in a 5-year FD earns ₹2,81,568 at maturity, including ₹81,568 in interest.
Super senior citizens receive the highest benefit during this period. A deposit of ₹2 lakh will yield a total of ₹2,85,049 after 5 years, including ₹85,049 in guaranteed interest. The unique feature of FDs is that their interest is fully fixed, and their return is guaranteed at maturity.