Banks have recently been offering higher interest rates on fixed deposits, with Union Bank of India in particular raising its deposit interest rates.
The bank has revised its fixed deposit interest rates, offering the highest interest rate of 7.40% to the general public on 333-day special deposits.
Senior citizens will receive an additional interest of 50 basis points, bringing their interest rate to 7.90%. Super Senior Citizens will receive 75 basis points more interest, totalling 8.15% on this special deposit scheme.
In addition, there are other special fixed deposit options available, with varying interest rates for different tenure deposits.
For example, a special fixed deposit with a tenure of 399 days offers 7.25% interest for regular citizens, 7.75% interest for senior citizens, and 8% interest for super senior citizens. The bank also offers 6.35% interest on 181-332 days special deposit and 5% interest on 121-180 days FD.
Interest on the ‘999 days FD’ is offered at 6.4% for regular citizens, 6.9% for senior citizens, and 7.15% for super senior citizens.
New interest rates have come into effect at the bank starting from August 2, 2024. For a deposit of Rs. 5 lakhs, the interest on a 333-day special FD for regular citizens would be Rs. 34,119 at the rate of 7.40%.
While for senior citizens, it would be Rs. 36,429 at 7.90%, and for super senior citizens, it would be Rs. 37,579 with an 8.15% interest rate.
Comparatively, Bank of Baroda offers 7.25% interest on 399 days Special FD, Punjab National Bank offers 7.25% interest on a 400-day deposit, and HDFC Bank offers the highest interest rate of 7.40% on a 55-month special deposit.