Banks, including public sector ones, frequently introduce new special fixed deposit schemes and revise their FD rates on existing plans. For more than two years, fixed deposit subscribers have enjoyed the highest interest rates since the RBI maintained the repo rate at elevated levels, reaching 6.50% in June 2023. This shift in the interest rate regime has made loans more expensive while making term and recurring deposits more attractive.
In line with current trends, many banks including Union Bank of India launched special tenure FD schemes. Union Bank of India is offering 8.15% interest rate on its 333-day plan called ‘Union Sumvridhi’.
Also read: Best FD Rates: Which banks are offering the highest interest rates on fixed deposits?
Key features of the Union Sumvridhi FD plan:
Deposit Period: 333 days
Minimum Deposit Amount: Rs 1,000
Maximum Deposit Amount: Up to Rs 3 crore
Interest rates:
General Customers: 7.40%
Senior Citizens: 7.90%
Super Senior Citizens: 8.15%
Interest on the deposit will be calculated and compounded quarterly, with payments credited to the deposit account every six months. At maturity, the accrued interest will be paid along with the principal amount.
Additional features:
TDS: Tax Deducted at Source will be applied as per applicable guidelines.
Loan Facility: Available against the fixed deposit.
Nomination Facility: Available as per the guidelines.
Premature closure: Premature closure of the deposit is allowed. Interest will be paid for the duration the deposit was held at the applicable rate, with any penalties as required. If the deposit is closed early (after running for 7 days or more), the interest paid will be 1.00% less than the rate applicable at the time of deposit opening or the contracted rate, whichever is lower.
This new fixed deposit scheme offers a range of benefits tailored to different customer segments, with competitive interest rates and flexible terms that cater to both general and senior customers.