Union Bank of India revises fixed deposit rate up to 1.25%

New Delhi: State-run Union Bank of India today revised fixed deposit rates on select maturity by up to 1.25 percent in line with other lenders.

Fixed deposits between 46 days to 120 days would now fetch 0.25 percent higher interest rate of 7.50 percent against existing 7.25 percent, Union Bank of India said in a statement.

Similarly in the slab of 31 to 45 days, interest rate is increased by 1.25 percent to 6 percent, it said.[caption id=“attachment_1220483” align=“alignleft” width=“380”]  New policy. Reuters[/caption]

The move is intended to increase the retail term deposit base of the bank, it said.

Bank has reduced the interest rate on deposit for five to seven years maturity by 0.25 percent.

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The new rates would be effective from 11 November, it said.

On Friday, Punjab National Bank (PNB) and Canara Bank raised fixed deposit rates on various maturities by as much as 0.50 percent indicating hardening of interest rates.

The rate revision by various lenders comes after the Reserve Bank of India increased interest rates by 0.25 percent in its monetary policy on 29 October.

Following this, State Bank of India, the country’s largest lender, and HDFC Bank hiked their base rate or the minimum lending rate by 0.20 percent to 10 percent.

PTI