When you are looking for bank fixed deposits (FD), one factor to consider is the highest rate of interest offered by different banks.
The general thumb rule is that 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 a one-year FD.
However, a handful of banks typically offer specific tenor fixed deposits, for which they offer 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 quarterly, and credited to the deposit account at a half-yearly interval. The deposit’s interest will be paid along with the 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.
