In the past two months, multiple banks have increased their interest rates on fixed deposits and the latest to join the list is Union Bank of India. The bank has hiked interest rates on its fixed deposits across tenors for investments less than Rs 2 crore. According to Union Bank of India’s website, the revised Fixed Deposit interest rates have come into effect from October 17. The bank now provided 3 per cent interest on deposits maturing between 7 and 14 days while the maximum interest rate of 7 per cent is applicable on a deposit of 599 days.
Deposits maturing in up to 45 days will earn an interest of 3 per cent while those maturing in 46 -90 days will get 4.05% interest. A deposit for 91-120 days will earn a return of 4.3 per cent while that for 121-180 days will be given 4.4% interest.
On fixed deposits with maturities ranging from 181 days to less than one year, Union Bank of India is now offering a 5.25% interest rate. For the one-year maturity period, the rate of return is 6.30 per cent.
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The rate of interest for FDs with maturities of more than 1 Year to 443 days will earn 6.6 per cent. After the hike, fixed deposits with maturities of 444 days will get an interest rate of 6.7 per cent while between 445 days to 598 days will get a 6.6 per cent return.
Union Bank fixed deposits for 599 days will earn an interest of seven per cent. Deposits for a maturity tenor of 600 days to 10 years will earn interest between 6.6 and 6.7 per cent.
Union Bank of India said that the interest on the Fixed Deposit is calculated on a daily basis and is credited on a quarterly basis every year in the months of April, July, October and January.
Senior citizens investing in the Union Bank of India fixed deposits will get an additional rate component, applicable to domestic term deposits, which is .5% above and over the normal rate.