This Government Bank After Recent Hike Offer Up To 7% Interest Rate On FDs

Since May 2022, Several banks hiked, revised and altered the interest rates on FDs and savings accounts. However, following the 4th Monetary Policy Committee meeting of the Reserve Bank Of India (RBI), which was held in the last week of September, where the RBI hiked the Repo rate for 4th time in 2022 by 50 bps. The consecutive 4th hike in the Repo rate has encouraged the banks and other financial institutions to raise interest rates on different products across the tenors.

Union Bank Of India FD Rates

Among many banks, Union Bank Of India is one government bank that has also hiked interest rates on FD. According to the Bank's official website, the has revised the FD rates below 2 Cr effective from 17 October 2022.

Following the repo rate hike, the bank raised the interest rates on retail FDs with maturities ranging from 7 days to 10 years. The bank after the hike in FD rates now offers interest ranging from 3% to 7% for the given tenor.

According to the bank, for deposits with maturities ranging from 7 days to 45 days, the bank is offering interest rates of 3%. On a maturity period of 46 days to 90 days, the bank is offering 4.05% and for the maturity period of 91 days to 120 days, the bank is offering 4.30% interest rate.

The bank is offering 4.40% on the maturity period of 121 days to 180 days. On the maturity period of 181 days to less than 1 year, the bank is offering 5.25% interest rate. On the maturity period of 1 year, the bank is offering an interest rate of 6.30%. For the maturity period of more than 1 year to 443 days, 445 days to 598 days, and 600 days to 2 years the bank is offering 6.60% interest rate, respectively.

On a special tenor of 444 days, the bank is offering an interest rate of 6.70% and on the maturity period of 599 days, the bank is offering the highest interest rate of 7%. On FDs with maturities ranging from 700 days to 36 months, the bank is offering a maximum interest rate of 7.10 percent.

The bank is offering an interest rate of 6.60% on the maturity period of 2 years to 10 years.

According to the bank's official website, the interest is calculated on a daily basis and is credited on a quarterly basis every year in the months of April, July, October and January.

Interest rates on FDs on below 2 Cr with effect from 17 October 2022

Period	Interest Rate (% p.a.)
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 443 Days	6.6
444 Days	6.7
445 days to 598 days	6.6
599 Days	7
600 Days to 2 Years	6.6
> 2 Year to 3 years	6.7
>3 Year to 5 Years	6.7
>5 Years to 10 Years	6.7

Source - unionbankofindia.co.in