Union Bank of India changed its interest rates on fixed deposits of less than Rs 2 crore. Following the change, the bank now offers interest rates on deposits maturing in 7 days to 10 years ranging from 3.00 per cent to 6.70 per cent. The bank is now offering a maximum interest rate of 7 per cent on a 399-day term. According to the Union Bank of India’s official website, the new FD rates are effective from May 23, 2023.
The bank is currently offering a 3 per cent interest rate on fixed deposits maturing in 7 to 45 days, as well as a 4.05 per cent interest rate on deposits maturing in 46 to 90 days. A deposit tenor of 91 to 120 days will now earn 4.30 per cent interest, while a deposit tenor of 121 to 180 days will earn 4.40 per cent interest.
Deposits maturing in 181 days to one year will now earn 5.25 per cent interest, while deposits maturing in one year to 398 days will earn 6.30 per cent interest.
Currently, the bank is offering a 3 per cent interest rate on fixed deposits maturing in 7 to 45 days and a 4.05 per cent interest rate on deposits maturing in 46 to 90 days. A deposit of 91 to 120 days now earns 4.30 per cent interest, while a deposit of 121 to 180 days now earns 4.40 per cent interest.
Deposits maturing in 181 days to one year will now earn 5.25 per cent, while deposits maturing in 398 days to one year will earn 6.30 per cent.
“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 per cent over and above the normal rates displayed above. The additional rate component applicable to resident super senior citizens is 0.75 per cent over and above the normal rate displayed above (0.25 per cent 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.
Union Bank of India reported a 61.18 per cent increase in net profit to 1,440 crore for the quarter ended March 31, 2023. The bank reported net interest income (NII) of 8,251 crore, a 4.38 per cent decrease from 8,628 crore in the third quarter of FY23 but a 17.92 per cent increase from NII of 6,769 crore in the previous quarter. The bank’s net interest margin (NIM) was 2.98 per cent in Q4FY23, up 13 basis points from 2.75 per cent in the previous quarter but down 23 points from 3.21 percent in Q3FY23. Global advances increased 13.05 per cent YoY and 0.73 per cent quarterly to 8,09,905 crore, while deposits jumped 8.26 per cent YoY and 4.95 per cent quarterly to 11,17,716 crore.
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