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Earn More Than 7% Interest With These 2 Govt. Banks On Special Tenure FDs
Reserve Bank of India (RBI) has continuously increased the Repo Rate since May 2022, which has led to a recent increase in fixed deposit rates by both Govt as well as private sector banks. Now, with the hikes, senior citizens as well as the general public can secure FDs at rates of interest up to 9%, depending on the institutions. However, the highest interest rate for senior citizens offered by Government banks is roughly 8%, which is subject to certain terms and conditions.
Among these high-paying banks, Canara Bank & Union Bank Of India are the two leading govt. Banks that offer high-interest rates on FD to their customers.
Union Bank Of India
Union Bank Of India is India's leading public sector banking that offers the highest interest rates on FD. The bank offers interest rates on FD ranging from 3% to 7.30% for the deposit period of 7 days to 10 years. Customers can book FD with the bank amounting below Rs 2 crore. The bank revised the FD rates on 25 November 2022. The revised rates are applicable to the general public and senior citizens. The bank offers an additional rate to Senior Citizens & Super Senior Citizens.
Interest Rates on FD below Rs 2 Cr Effective from 25 Nov' 2022
| Period | Revised Interest Rate |
|---|---|
| 7-14 Days | 3 |
| 15 -30 Days | 3 |
| 31-45 Days | 3 |
| 46 -90 Days | 4.05 |
| 91-120 Days | 4.3 |
| 121-180 Days | 4.4 |
| 181 Days to | 5.25 |
| 1 Year | 6.3 |
| >1 Year to 598 Days | 6.3 |
| 599 Days | 7 |
| 600 Days to 699 days | 6.3 |
| 700 days | 7.25 |
| >700 days to 2 year | 6.3 |
| > 2 year to 799 days | 6.3 |
| 800 days | 7.3 |
| 801 days to less than 3 Year | 6.3 |
| 3 years | 7.3 |
| >3 Year to 5 Years | 6.7 |
| >5 Years to 10 Years | 6.7 |
Source - unionbankofindia.co.in
According to the Bank's official website, "Union Bank of India offers an additional rate component to resident senior and super senior citizens on term deposits up to Rs. 5.00 Crores in all of its domestic term deposits scheme. The additional rate component, applicable to resident senior citizen deposits is 0.50% over and above the normal rates displayed above. The additional rate component applicable to resident super senior citizens is 0.75% over and above the normal rate displayed above (0.25% over and above rate applicable to resident senior citizen). The additional rate on super senior term deposits would be applicable for the term deposits opened/renewed on or after 01.12.2022."
Canara Bank
Canara Bank is one of the leading Govt. Bank that offers the highest interest rates on FD to customers on FD amounting below 2 Crore. The bank offers a minimum 3.25% and a maximum 71.5% to the general public, meanwhile, senior citizens get minimum 3.25% to maximum 7.65%.
The above interest rates are applicable on the FD tenure ranging from 7 days to 10 years. According to the Bank's official website, the interest rates are applicable from 18 January 2023.
Canara Bank offers the highest interest rate of 71.5% to the general public and 7.65% to senior citizens for the FD tenure of 400 days. The bank on the FD of 600 days, offers 7% to the general public and 7.50% to senior citizens, respectively. Senior citizens can earn more than 7% on FD tenure ranging from 1 year to 10 years.
Domestic (Callable) Fixed Deposit Rates on Below Rs 2 Cr effective from 18 Jan' 2023
| Term Deposits | General Public Rates ( % p.a.) | Senior Citizen Rates (% p.a.) # |
|---|---|---|
| 7* Days to 45 Days | 3.25 | 3.25 |
| 46 Days to 90 Days | 4.5 | 4.5 |
| 91 Days to 179 Days | 4.5 | 4.5 |
| 180 Days to 269 Days | 5.5 | 6 |
| 270 Days to less than 1 Year | 5.5 | 6 |
| 1 Year only | 6.75 | 7.25 |
| Above 1 Year to less than 2 Years | 6.8 | 7.3 |
| 400 DAYS | 7.15 | 7.65 |
| 666 Days | 7 | 7.5 |
| 2 Years & above to less than 3 Years | 6.8 | 7.3 |
| 3 Years & above to less than 5 Years | 6.5 | 7 |
| 5 Years & above to 10 Years. | 6.5 | 7 |
Source - canarabank.com
Please note - *Rates are applicable only for single deposit of Rs.5 Lakh & above. Below Rs.5 Lakh, Minimum tenor of deposit is 15 Days.
#Additional interest of 0.50% for Senior Citizens is available for Deposits (Other than NRO/NRE and CGA Deposits) less than Rs. 2 Cr and with tenor of 180 Days and above."
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