When you are on a lookout for bank fixed deposits (FD), one of the key things that you zero in on is the highest rate of interest offered by different banks.
While the general thumb rule is that the banks tend to offer higher interest rates for long duration deposits and lower rates for shorter duration. For instance, a five-year FD will offer a higher interest rate than one-year FD.
However, a handful of banks typically offer some specific tenor fixed deposits as well for which they give a special interest rate.
Union Bank of India, for instance, has rolled out a fixed deposit (FD) scheme for 333 days, known as Union Sumvridhi, that offers interest up to 8.15 per cent to depositors. The minimum deposit amount is ₹1,000 while the maximum is ₹3 crore. The rate of interest will be 7.4 percent for general citizens, 7.90 percent for senior citizens and 8.15 percent for super senior citizens.
Interest tenure
The interest on your term deposit will be calculated, compounded on quarterly rests and credited to the deposit account on half yearly interval. Interest accrued on the deposit will be paid along with principal at the time of maturity.
Premature closure
In case of pre-closure of fixed deposits interest will be paid at 1 per cent less than the applicable rate for the period for which it has actually remained with the bank or contracted rate, whichever is lower.
It is noteworthy to mention here that Bank of Baroda also offers BOB monsoon dhamaka deposit scheme where in general depositors are entitled to earn 7.15 percent, whereas senior citizens are entitled to earn 7.65 per cent per annum when they keep the money deposited for 333 days.
These rates came into force from July 15 2024 onwards.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
