When bank loans become cheaper, it often impacts savings schemes like fixed deposits. Following the recent 1% cut in the repo rate, many banks have reduced interest rates on fixed deposits (FDs).
However, even in this environment, Union Bank of India is one such public sector bank that is offering attractive fixed deposit interest rates to its customers—especially for those looking for a safe investment with assured returns. If you’re looking to invest your ₹2 lakh in a risk-free and fixed interest rate, Union Bank’s FD scheme could be an excellent option.
Union Bank of India FD Interest Rates 2025
Union Bank of India, one of the country’s leading public sector banks, currently offers interest rates ranging from 3.40% to 7.35% on FDs. Customers can open fixed deposits for tenures ranging from 7 days to 10 years. Currently, the bank’s 3-year FD scheme offers the highest returns. It offers different interest rates for three different categories:
General Public : 6.60%
Senior Citizens (60-79 years): 7.10%
Super Senior Citizens (80 years and above): 7.35%
How much will you get on a ₹2 lakh FD?
If you invest ₹2 lakh in a 3-year Union Bank FD scheme, you can expect a fixed return of the following, depending on your age and eligibility:
General Citizen (at 6.60% interest rate):
Investment Amount: ₹2,00,000
Amount Received on Maturity : ₹2,43,399
Total Interest : ₹43,399
Senior Citizen (@ 7.10% interest rate):
Investment Amount: ₹2,00,000
Amount Received on Maturity: ₹2,47,015
Total Interest: ₹47,015
Super Senior Citizen (@ 7.35%):
Investment Amount: ₹2,00,000
Amount Received on Maturity: ₹2,48,841
Total Interest: ₹48,841
Why choose this Union Bank FD scheme?
– Government bank guarantee and reliability
– Fixed returns and protection from market risk
– Additional interest benefit for senior citizens
– Excellent interest even on small investments
– Tax saving option (under Section 80C)
What to keep in mind before investing?
Interest rates can change from time to time, so confirm the information on the bank’s official website or with your nearest branch before investing.
If you want to open a tax-saving FD for 5 years or more, select a different scheme.
Penalties may apply for premature FDs.
The bank offers different differential rates for senior and super senior citizens—be sure to have proof of age with you.
