The Reserve Bank of India (RBI) has announced its latest policy decision after the Monetary Policy Committee (MPC) meeting.
The RBI Governor confirmed that the repo rate will remain unchanged at 5.25 percent.
Last year, the RBI had reduced the repo rate by 1.25 percent.
While this made loans cheaper, fixed deposit (FD) interest rates also came down.
Even so, some banks are still offering attractive FD returns.
One such option is from UCO Bank, where a deposit of just Rs 1 lakh can earn you a fixed interest of up to Rs 38,042.
UCO Bank FD Interest Rates Explained
UCO Bank, a public sector bank, is currently offering FD interest rates ranging from 2.90 percent to 7.95 percent.
The highest interest rate is available under the bank’s 444-day special FD scheme.
Under this scheme, general customers earn 6.45 percent, senior citizens get 6.95 percent, bank staff receive 7.45 percent, and retired senior citizen staff earn up to 7.95 percent.
For long-term investors, UCO Bank is offering 6.00 percent interest for general citizens and 6.50 percent for senior citizens on 5-year fixed deposits.
Returns on Depositing Rs 1 Lakh
If a general citizen invests Rs 1 lakh in a 5-year FD, the maturity amount will be Rs 1,34,686.
This includes a fixed interest of Rs 34,686.
Senior citizens get an even better return.
On investing Rs 1 lakh for five years, the maturity amount becomes Rs 1,38,042, which means a fixed interest of Rs 38,042.
Why Fixed Deposits Remain a Safe Choice
Fixed deposits offer guaranteed returns. Once you invest, the interest rate and maturity amount are fixed in advance.
There is no market risk, and investors receive the principal amount along with assured interest after the chosen tenure.
For those looking for stability and predictable income, bank FDs continue to be a reliable investment option.