PSU FD: Union Bank of India Hikes FD Rates Up To 7.25%; Senior Citizens To Get 50 Bps Additional Returns

Union Bank of India is one of the leading public-sector banks in the country. The listed entity has hiked its interest rates on fixed deposits of less than Rs 2 Cr. The bank is now offering interest rates on deposits with tenures ranging from 7 days to 10 years, with rates between 3.50% and 6.50%. Union Bank of India will now give a maximum return of 7.25% on deposits that mature in 399 days. According to the bank's official website, the new FD rates take effect on April 25, 2024.

Union Bank of India FD Rates

Union Bank of India is paying an interest rate of 4.50% on term deposits that mature between 46-90 days, while the bank is giving an interest rate of 3.50% on deposits maturing in 7-45 days. Interest rates offered by Union Bank of India are 4.80% for deposits with a term of 91-120 days and 4.90% for fixed deposits with a term of 121-180 days. The interest rate on deposits maturing in 181 days to 1 year will now be 5.75%, while the interest rate on deposits maturing in 1 year to 398 days will now be 6.75%.

On term deposits maturing in 399 days, the bank will pay an interest rate of 7.25% and on those maturing in 400 days to 998 days, Union Bank of India will pay an interest rate of 6.50%. Union Bank of India will pay an interest rate of 6.40% on an FD tenure of 999 days and 6.50% on a term deposit tenure of 1000 days to 10 years.

Period	Rates in % per annum for amount below Rs 2 Cr
7-14 Days	3.5
15-30 Days	3.5
31-45 Days	3.5
46-90 Days	4.5
91-120 Days	4.8
121-180 Days	4.9
181 Days to 1 year	5.75
1 year	6.75
1 year to 398 Days	6.75
399 Days	7.25
400 Days to 2 year	6.5
2 year to 998 days	6.5
999 days	6.4
1000 days to less than 3 Years	6.5
3 years	6.5
3 Year to 5 years	6.5
5 Years to 10 Years	6.5
Source: Bank Website

"Union Bank of India offers an additional rate component to resident senior and super senior citizens on term deposits up to Rs. 5.00 Crores in all of its domestic term deposits scheme. The additional rate component, applicable to resident senior citizen deposits is 0.50% over and above the normal rates displayed above," mentioned the bank on its website.

"The additional rate component applicable to resident super senior citizens is 0.75% over and above the normal rate displayed above (0.25% over and above rate applicable to resident senior citizen). The additional rate on super senior term deposits would be applicable for the term deposits opened/renewed on or after 01.12.2022," Union Bank of India has highlighted on its official web portal.

"All esteemed customers are informed that from now onwards, Deposit Advice will be issued in lieu of Deposit Receipt for term deposits made by you. This Deposit advice will be at par with regular Deposit Receipt. We appreciate your understanding and support in this matter. Please reach out to your nearest branch for further information," recently Union Bank of India said in a statement.