State Bank of India (SBI) and Union Bank have hiked interest rates on fixed deposits (FDs) of less than two crore rupees by up to 0.50%. The increased rates on select tenure FDs have come into effect from December 27 for both banks. SBI stated that FDs ranging from seven days to 45 days will now yield an additional interest of 0.50%, resulting in a total of 3.50% interest. FDs ranging from 46 days to 179 days will offer an extra 0.25% interest, totaling 4.75%. The highest interest of seven percent will be provided on FDs with durations of two to three years.
This move is aimed at providing senior citizens with higher returns on their investments. Union Bank of India announced an increase of up to 0.25% on FD interest rates. According to the bank, deposits held for seven to 14 days will now accrue three percent interest. Meanwhile, deposits ranging from 121 days to 180 days will earn an interest of 4.4%, and those held for a year will yield 6.30%. The bank has further declared that its customers will receive seven percent interest on deposits held for 399 days, while FDs with tenures spanning five to ten years will yield 6.70% interest. Both SBI and Union Bank of India have confirmed that senior citizens will receive an additional 0.50% interest on FDs.