The Reserve Bank of India (RBI) cut the repo rate by 1.25% this year, bringing it down to 5.25%.
Usually, when the repo rate falls, loan interest rates and FD returns also decrease.
However, some banks are still offering attractive fixed deposit schemes.
One such option is the Union Bank of India FD, which allows you to earn up to Rs 22,239 in interest by depositing just Rs 1 lakh.
Union Bank FD: High Returns Despite Rate Cuts
Union Bank of India, a public sector bank, offers FD interest rates ranging from 2.75% to 7.05%.
You can open an FD for a minimum of 7 days up to a maximum of 10 years.
The 400-day special FD scheme offers the highest rates:
6.30% for general citizens
6.80% for senior citizens
7.05% for very senior citizens
For a 3-year FD, the rates are also attractive:
6.00% for general citizens
6.50% for senior citizens
6.75% for very senior citizens
Earn Fixed Interest of Up to Rs 22,239
Here’s what you can earn by depositing Rs 1 lakh in a 3-year FD:
General citizens: Total maturity amount Rs 1,19,562, interest earned Rs 19,562
Senior citizens: Total maturity amount Rs 1,21,341, interest earned Rs 21,341
Very senior citizens: Total maturity amount Rs 1,22,239, interest earned Rs 22,239
This makes Union Bank’s FD schemes a great choice for safe, fixed returns, even after the RBI’s repo rate cut.