The Reserve Bank of India (RBI) has reduced the repo rate by 1.25 percent this year, bringing it down to 5.25 percent. Generally, when the repo rate is cut, interest rates on loans
and fixed deposits (FDs) also fall. However, even after this reduction, several banks are still offering attractive interest rates on FD schemes.
One such option is from Union Bank of India, where investors can earn fixed interest of up to ₹22,239 by depositing just ₹1 lakh.
Union Bank of India FD Schemes and Interest Rates
Union Bank of India, a public sector bank, is offering FD interest rates ranging from 2.75% to 7.05%. Customers can open FD accounts for a minimum period of 7 days and a maximum period of 10 years.
The bank is offering its highest interest rates on a 400-day special FD scheme:
6.30% for general citizens
6.80% for senior citizens
7.05% for very senior citizens
Apart from this, Union Bank of India is also offering attractive rates on its 3-year FD scheme:
6.00% for general citizens
6.50% for senior citizens
6.75% for very senior citizens
Returns on ₹1 Lakh FD Investment
If a general citizen invests ₹1,00,000 in a 3-year FD, the maturity amount will be ₹1,19,562, which includes ₹19,562 as fixed interest.
A senior citizen investing the same amount will receive ₹1,21,341 on maturity, including ₹21,341 as interest.
A very senior citizen depositing ₹1,00,000 will get ₹1,22,239 on maturity, which includes ₹22,239 as fixed interest.