The Reserve Bank of India (RBI) has reduced the repo rate by 0.25 percent again in December.
With this cut, the total reduction in the repo rate this year now stands at 1.25 percent.
After this move, many banks lowered their fixed deposit (FD) interest rates.
Public sector Union Bank of India has also revised its FD rates, with the new rates effective from December 5.
Despite the rate cut, Union Bank of India is still offering attractive returns on certain FD schemes.
One such option allows investors to earn up to Rs 14,325 in interest by depositing just Rs 1 lakh.
Union Bank of India FD Interest Rates Explained
Union Bank of India is a government-owned bank operating under the Central Government.
Customers can open an FD for as little as 7 days, while the maximum tenure goes up to 10 years.
At present, the bank offers FD interest rates ranging from 2.75 percent to 7.05 percent.
The highest interest is available on its 400-day special FD scheme, where rates range between 6.30 percent and 7.05 percent, depending on the customer category.
For a regular 2-year FD, Union Bank of India offers:
6.00 percent interest for general citizens
6.50 percent interest for senior citizens
6.75 percent interest for very senior citizens above 80 years
How Rs 1 Lakh Can Grow Into Rs 1.14 Lakh
The returns from a 2-year FD depend on the age category of the investor.
A general citizen investing Rs 1 lakh for two years will receive Rs 1,12,649 at maturity.
This includes a fixed interest of Rs 12,649.
Senior citizens investing the same amount for the same period will get Rs 1,13,764 on maturity.
Their total interest earnings come to Rs 13,764.
Very senior citizens aged above 80 years get the highest benefit.
A Rs 1 lakh deposit for two years will grow to Rs 1,14,325, which means fixed interest earnings of Rs 14,325.
Is This FD Worth Considering?
Even after the recent repo rate cut, Union Bank of India’s FD schemes continue to offer stable and predictable returns.
These options can be suitable for investors who prefer safety and assured income, especially senior and very senior citizens looking for better interest rates.
Before investing, customers should always check the latest rates and terms with the bank, as interest rates may change based on RBI policies and market conditions.