The interest rate on savings bank deposits has been revised by the public sector lender Union Bank of India. According to the bank's official website, the revised rates will go into effect on June 1, 2022. Following the modification, the bank would give a 2.75 per cent interest rate on savings bank deposits up to Rs.50 lakhs, down from 2.90 per cent before. The interest rate on savings bank deposits of more than Rs.100 crore to Rs.500 crore will now be 3.10 per cent, up from 2.90 per cent before. Interest rates on savings bank deposits of more than Rs.500 crores to Rs.1000 crores will now be 3.40 per cent, up from 2.90 per cent before, and savings bank deposits of more than Rs.1000 crores will now be 3.55 per cent, up from 2.90 per cent previously.
Union Bank of India Savings Account Interest Rates
|Balance||Existing Interest Rate||Revised Interest Rate|
|Up to Rs.50 lakhs||2.90%||2.75%|
|Up to Rs.50 lakhs||2.90%||2.90%|
|Above Rs.100 Crores to Rs.500 Crores||2.90%||3.10%|
|Above Rs.500 Crores to Rs.1000 Crores||2.90%||3.40%|
|Above Rs.1000 Crores||2.90%||3.55%|
|Source: unionbankofindia.co.in. W.e.f. 01st June 2022|
Meanwhile, Kotak Mahindra Bank raised the interest rate on fixed deposits under Rs 2 crore maturing in 390 days to 23 months today. The bank will now provide an interest rate of 5.50 per cent, up from 5.20 per cent, as of May 6, 2022, a 30 basis point increase. On deposits maturing in 23 months, the bank would now give a 5.60 per cent interest rate, up from 5.25 per cent previously, a 35 basis point increase. Banks including Bandhan Bank, ICICI Bank, Jana Small Finance Bank, and Federal Bank have announced interest rate hikes after the RBI raised the repo rate to 4.40 per cent. In the coming days, we may see more interest rate hikes on short-term deposits from the major banks.