The Reserve Bank of India (RBI) has cut the repo rate by 0.25 percent in December, bringing the total rate reduction this year to 1.25 percent.
Following this move, banks have lowered interest rates on fixed deposits (FDs).
Union Bank of India has implemented the new FD rates from December 5.
One of its FD schemes now allows investors to earn up to Rs 14,325 by depositing just Rs 1 lakh.
Union Bank of India FD Interest Rates
Union Bank of India is a government-owned bank that allows customers to open FD accounts for as short as 7 days or as long as 10 years.
Currently, the bank offers FD interest rates ranging from 2.75 percent to 7.05 percent.
The highest interest is available on the 400-day special FD scheme, offering 6.30 percent to 7.05 percent. For the 2-year FD scheme:
General citizens earn 6.00 percent interest
Senior citizens earn 6.50 percent interest
Very senior citizens (above 80 years) earn 6.75 percent interest
How Rs 1 Lakh Can Grow in 2 Years
By investing Rs 1 lakh in a 2-year FD, the returns vary based on age:
General citizens: Total maturity amount Rs 1,12,649 (interest Rs 12,649)
Senior citizens: Total maturity amount Rs 1,13,764 (interest Rs 13,764)
Very senior citizens: Total maturity amount Rs 1,14,325 (interest Rs 14,325)
This FD scheme is a safe and predictable way to grow your money, especially for senior investors seeking higher returns.
Even after RBI’s rate cuts, Union Bank’s FDs continue to offer attractive interest rates compared to many other options in the market.
