Union Bank of India Hikes FD Rates By 45 Bps: Check New Rates Here

Union Bank, a public sector lender, increased the interest rate on fixed deposits under Rs 2 Cr. The bank hiked interest rates by up to 45 basis points across multiple tenures in response to the change, and it is currently providing a maximum return of 7.25% on a 399-day tenure. The bank made the announcement on December 27, the same day that the State Bank of India (SBI), the nation's largest lender, announced an increase in interest rates of 50 basis points for retail term deposits of less than Rs 2 Cr.

Union Bank of India FD Rates

On fixed deposits maturing in 7 days to 45 days, the bank will continue to give an interest rate of 3.00% and for those maturing in 46-90 days, Union Bank of India will continue to offer an interest rate of 4.05%. Union Bank of India will maintain its interest rate of 4.30% for deposits with a 91-120 day term and 4.40% for those with a 121-180 day period. Term deposits that mature between 181 days and 1 year will still earn 5.25% interest; however, those that mature between 1 year and 398 days will now earn 6.75% interest, up from 6.30% before, a 45 bps rise.

On deposits maturing in 399 days, the bank has hiked the interest rate by 25 bps from 7% to 7.25% and on those maturing in 400 days to 3 years, Union Bank of India has hiked the interest rate by 20 bps from 6.30% to 6.50%. Deposits maturing in 3 years to 10 years will now fetch an interest rate of 6.50% which was 6.70% earlier.

"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," mentioned Union Bank of India on its website.

Meanwhile, the State Bank of India (SBI) raised interest rates on fixed deposits of less than Rs 2 Cr on December 27, 2023. Following the Reserve Bank of India's (RBI) decision at the December 8 MPC meeting to maintain the benchmark repo rate at 6.5% for a fifth consecutive meeting, SBI raised its fixed deposit (FD) rates by 50 basis points.

The bank hiked interest rates on fixed deposits maturing in 7 to 45 days by 50 basis points, or 3.00% to 3.50%, while SBI increased interest rates on those having expired in 46 to 179 days by 25 basis points, or 4.50% to 4.75%. Interest rates on deposits with tenors of 180 days to 210 days have gone up by 50 basis points (bps) from 5.25% to 5.75% at SBI, while on deposits with tenors of 211 days to less than a year, the bank raised the interest rates by 25 bps from 5.75% to 6.00%. SBI hiked interest rates on deposits maturing in three to less than five years by 25 basis points, from 6.50% to 6.75%.