When you are looking for a bank Fixed deposits (FD), one of the key things you focus on is the highest interest rate offered by different banks.
While the general rule is that banks tend to offer higher interest rates for long-term deposits and lower rates for shorter terms. For example, a five-year fixed deposit will offer a higher interest rate than a one-year fixed deposit.
However, a handful of banks usually offer a specific term. Fixed deposits as well as those for which they grant a special interest rate.
Union Bank of India, for instance, has launched a 333-day fixed deposit (FD) scheme, known as Union Sumvridhi, offering interest of up to 8.15 per cent to depositors. The minimum deposit amount is ₹1,000 while the maximum is ₹3 crore. The interest rate will be 7.4 percent for general citizens, 7.90 percent for senior citizens and 8.15 percent for non-senior citizens.
Term of interest
The interest on your term deposit It will be calculated, compounded in the remaining quarters and credited to the deposit account at semi-annual intervals. The interest earned on the deposit will be paid together with the principal upon maturity.
Premature closure
In the event of early closure of fixed-term deposits, interest will be paid at a rate of 1 percent lower than the rate applicable during the period in which the deposit was actually deposited in the bank or at the contracted rate, whichever is lower.
It is worth mentioning here that Bank of Baroda Also offers BOB monsoon burst deposit scheme where general depositors are entitled to earn 7.15 percent while senior citizens are entitled to earn 7.65 percent annually when they keep the money deposited for 333 days.
These rates came into effect on July 15, 2024.
Note:This story is for information purposes only. Please speak to a SEBI registered investment advisor before taking any investment related decisions.
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