The state-owned Union Bank of India has revised interest rates on its fixed deposits and savings accounts. FD rates are applicable for deposits below ₹2 crore offering a maximum interest rate of 5.8%, while the savings balance has the highest rate of 3.55%. The new rates came into effect on June 16.
FD below ₹2 crores:
Union Bank offers an interest rate of 3% on terms of 7 days to 45 days, while a rate of 4.05% is applicable on FDs maturing between 46 and 90 days. Meanwhile, a rate of 4.10% is offered on terms starting from 91 days to 180 days.
A depositor can earn an interest rate of 4.60% on FDs maturing in 181 days to less than one year, while 5.35% is offered on a one-year term.
The bank offers a rate of 5.45% on FDs greater than 1 year to 2 years, and a rate of 5.50% is applicable on terms greater than 2 years to 3 years.
An interest rate of 5.75% is applicable on more than 3 years to 5 years of occupation. The highest rate of 5.80% is available on 5 years to 10 years of seniority.
According to the Union Bank website, the aggregate value of deposits placed by a depositor on the day, regardless of the term of the deposit, will be taken into account in deciding the applicable interest.
Savings deposits:
Starting June 16, Union Bank is offering 2.75% on savings balance up to ₹50 lakh, while 2.90% is offered between ₹50 to ₹100 crores.
An interest rate of 3.10% is applicable on the savings balance above ₹100 crore to ₹500 crore, and an interest rate of 3.40% is granted on the above balance ₹500 crore to ₹1,000 crores.
Savings balance above ₹1,000 crore, the interest rate is 3.55%.
Interest on a savings account is calculated on a daily proceeds basis and is credited quarterly in April, July, October and January of each year.