Union Bank of India Revises FD Rates, Now Earn Upto 7% Interest: Check Latest Rates Here

The new rates are effective from May 23, 2023

Union Bank of India

Union Bank of India, a prominent public sector lender, has announced revised interest rates on fixed deposits (FDs) below ₹2 Crore. The new rates, effective as of May 23, 2023, range from 3.00% to 6.70% for deposit periods spanning 7 days to 10 years. Notably, the bank now offers a maximum interest rate of 7% for FDs maturing in 399 days.

Under the revised scheme, depositors will receive a 3% interest rate for FDs maturing within 7 to 45 days. FDs with a maturity period of 46 to 90 days will earn a 4.05% interest rate, while those maturing in 91 to 120 days will yield 4.30%. Similarly, deposits with a tenor of 121 to 180 days will accumulate interest at a rate of 4.40%.

Period Rates in % per annum <Rs 2 Cr
7-14 Days 3
15-30 Days 3
31-45 Days 3
46-90 Days 4.05
91-120 Days 4.3
121-180 Days 4.4
181 Days to < 1 year 5.25
1 year 6.3
>1 year to 398 Days 6.3
399 Days 7
400 Days to 2 year 6.3
> 2 year to less than 3 years 6.3
3 years 6.5
> 3 Year to 5 years 6.7
>5 Years to 10 Years 6.7

For longer tenures, Union Bank of India has set the interest rates as follows:

FDs maturing in 181 days to 1 year will earn interest at a rate of 5.25%, while those maturing in 1 year to 398 days will receive a rate of 6.30%. The bank's highest interest rate of 7% is applicable to FDs maturing in 399 days. For deposit periods ranging from 400 days to 3 years, the bank offers an interest rate of 6.30%. Depositors opting for a term of 3 to 10 years will enjoy a competitive interest rate of 6.70%.

In a move to cater to senior citizens, Union Bank of India provides an additional rate component. Resident senior citizens are eligible for an extra 0.50% interest rate, while resident super senior citizens can avail an additional 0.75% interest rate on term deposits up to ₹5 Crore. These additional rates were implemented on term deposits opened or renewed on or after December 1, 2022.

Union Bank of India's Q4 results showed a slight dip in net interest income, but displayed improved asset quality. Despite the decline in NII, there was a significant annual increase of 17.92%. The bank's net interest margin also saw a sequential improvement, rising to 2.98%. These findings highlight the bank's commitment to financial excellence and customer satisfaction.

Also Read: Union Bank of India Q4 Results Review - NII, Margins Disappoint; Asset Quality Improves: Motilal Oswal

For more detailed information individuals are advised to visit their nearest Union Bank branch or access the official website.

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Komal Jain
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