Union Bank hikes deposit rates by up to 0.50 per cent

Just a few weeks ahead of the Reserve Bank of India's monetary policy, which is scheduled for 20 April, public sector lender Union Bank of India today announced an increase in its deposit rates by up to 0.50 per cent across various maturities with effect from 5 April.

The rate hike makes retail deposits above one-year tenure and up to Rs1 crore more attractive for the bank's customers.

Retail deposits of one year will hence attract a rate of 6.5 per cent per annum against the earlier 6.0 per cent.

For deposits of tenure 2 years, 3 years and 5 years, rates offered are 7.0 per cent, 7.25 per cent and 7.50 per cent, respectively. The new rates are up by 0.25 per cent over the currently-offered rates, the bank said.

On 1 April, State Bank of India, the country's largest lender, had announced an increase in interest rates on foreign currency non-resident bank deposits FCNR (B) and non-resident external (NRE) rupee term deposits (See: SBI raises interest rates on foreign currency deposits).

Accordingly, FCNR(B) US dollar deposits of one-to-less-than-two-year maturity will now attract a rate of 1.92 per cent (1.84 per cent) while deposits for 2 years to less than 3 years will carry a rate of 2.24 per cent (2.08 per cent), SBI said in a release.
Following SBI's step, Indian Bank on Friday hiked interest rates on FCNR (B) and NRE deposits with effect from 1 April.

For FCNR (B) deposits, in US dollar, the revised interest rate has been fixed at 1.92 per cent for deposits of one year and above but less than two years. Currently, the interest rate is 1.84 per cent, an Indian Bank press release said.
For deposits of two years and above but less than three years, the rate is 2.24 per cent as compared to 2.08 per cent.

Deposits of above three years and less than four years have interest rates fixed at 2.84 per cent against 2.69 per cent at present, while for deposits of four years and above but less than five years, the rate has been fixed at 3.75 per cent compared to 3.20 per cent earlier.