The Reserve Bank of India (RBI) has reduced the repo rate by 1.25 percent during this year, bringing it down to 5.25 percent.
Generally, when the repo rate is lowered, banks reduce interest rates on loans. At the same time, interest rates on fixed deposits (FDs) also tend to decline.
However, even after this significant cut in the repo rate, several banks are still offering attractive interest rates on FD schemes to attract customers.
One such bank is Union Bank of India, which is offering an FD scheme where investors can earn fixed interest of up to ₹22,239 by investing just ₹1 lakh.
Union Bank of India FD Interest Rates
Union Bank of India, a public sector bank, is offering FD interest rates ranging from 2.75 percent to 7.05 percent.
Customers can open an FD account for a minimum period of 7 days and a maximum period of 10 years, depending on their financial goals.
The bank is currently offering its highest interest rate on a special 400-day FD scheme. Under this scheme:
General citizens get an interest rate of 6.30 percent
Senior citizens get 6.80 percent
Very senior citizens get 7.05 percent, which is the highest rate offered by the bank
Apart from this, Union Bank of India is also offering attractive returns on its 3-year FD scheme:
6.00 percent for general citizens
6.50 percent for senior citizens
6.75 percent for very senior citizens
Returns on ₹1 Lakh Fixed Deposit
If a general citizen invests ₹1,00,000 in a 3-year FD with Union Bank of India, the total maturity amount will be ₹1,19,562. This includes a fixed interest of ₹19,562.
If a senior citizen invests the same amount for three years, the maturity value will be ₹1,21,341, which includes ₹21,341 as interest.
Similarly, a very senior citizen who deposits ₹1 lakh in a 3-year FD will receive ₹1,22,239 at maturity, including a fixed interest of ₹22,239, which is the highest return among the three categories.
