Union Bank of India has announced an attractive revision in its fixed deposit (FD) interest rates, with significant benefits for both regular and senior citizens. The new rates, effective from August 2, 2024, feature enhanced returns for fixed deposits of various tenures, highlighting the bank’s commitment to providing competitive rates to its customers.
Attractive Rates on 333-Day Fixed Deposits
For fixed deposits with a tenure of 333 days, Union Bank offers a special interest rate of 7.4 percent per annum for regular citizens. This rate represents a notable increase, catering to those looking for short-term investment options with robust returns.
Senior citizens benefit from an additional 50 basis points, bringing their interest rate to 7.9 percent per annum on the same 333-day FD. Super senior citizens, who are over the age of 80, enjoy an even higher rate, with an extra 75 basis points, resulting in an impressive 8.15 percent per annum. This tiered interest rate structure underscores the bank’s efforts to reward senior and super senior citizens with more attractive returns on their deposits.
Rates on Longer-Term Fixed Deposits
Union Bank also offers competitive rates on fixed deposits with longer tenures. For a 399-day FD, the interest rate is 7.25 percent per annum for regular citizens. Senior citizens receive 7.75 percent, while super senior citizens benefit from an 8.00 percent annual interest rate.
For fixed deposits with tenures between 181 and 332 days, the interest rate is set at 6.35 percent. For shorter-term deposits of 121 to 180 days, the interest rate is 5 percent per annum. These rates provide a range of options for customers based on their investment preferences and time horizons.
Three-Year Fixed Deposit Rates
When it comes to fixed deposits with a tenure of three years, Union Bank offers a rate of 6.70 percent per annum for regular citizens. Senior citizens receive 7.20 percent, and super senior citizens enjoy a 7.45 percent interest rate. This demonstrates the bank’s commitment to providing higher returns for longer-term deposits, especially to its senior customers.
For deposits with tenures ranging from 998 days to less than three years (excluding the 999-day tenure), the bank offers 6.60 percent per annum to regular citizens. Senior citizens and super senior citizens are granted 7.10 percent and 7.35 percent, respectively.
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Rates for Deposits Between Three and Ten Years
For fixed deposits with tenures ranging from three to ten years, Union Bank provides an interest rate of 6.5 percent. This long-term option is ideal for investors looking for stability and consistent returns over an extended period.
Comparison with Other Banks
While Union Bank offers competitive rates, other banks also provide attractive fixed deposit options. For instance, Bank of Baroda offers a 7.25 percent interest rate on a 399-day FD. Punjab National Bank provides 7.25 percent on an FD with a 400-day tenure. HDFC Bank leads with the highest rate of 7.40 percent on a 55-month FD. These offerings highlight the variety of fixed deposit products available to investors, each catering to different needs and investment horizons.
Union Bank of India’s revised fixed deposit interest rates offer substantial benefits, particularly for senior and super senior citizens, with rates reaching up to 8.15 percent on a 333-day FD. The bank’s competitive rates across various tenures provide a range of options for investors looking to maximize their returns on fixed deposits. As always, investors should compare rates and terms from different banks to choose the best option that aligns with their financial goals.
