Public sector lender Union Bank of India has restructured its interest rates across multiple fixed deposit tenures. The revised interest framework came into effect on August 4, 2026. Under this updated schedule, depositors seeking steady and secure returns on their investments can earn between 2.70 percent and 6.55 percent per annum, depending on the maturity period chosen. For individuals planning to commit funds for terms spanning between one and five years, or even longer horizons, these rate adjustments present key changes in potential earnings.
Under the fresh rate schedule, general depositors placing money in deposits maturing between 1 year and 399 days receive an interest rate of 6.20 percent per annum. Moving slightly higher on the timeline, terms of 400 days as well as ranges between 401 and 443 days fetch an annual return of 6.25 percent. Furthermore, the lender offers an elevated 6.50 percent return on a specific tenure of 444 days, allowing investors positioned around the one-year mark to secure a competitive yield.
Detailed Interest Rate Structure from 1 Year to 10 Years
Depositors preparing to lock in money with Union Bank of India for periods ranging from one year up to a full decade can select from several defined maturity buckets. The complete structure for retail terms reflects the following annual rates
- 1 year to 399 days: 6.20 percent annual interest
- 400 days to 443 days: 6.25 percent annual interest
- 444 days special tenure: 6.50 percent annual interest
- 445 days to 554 days: 6.15 percent annual interest
- 555 days special deposit: 6.55 percent peak annual return
- 556 days to 996 days: 6.15 percent annual interest
- 997 days to 3 years: 6.10 percent annual interest
- Over 3 years up to 10 years: 6.00 percent annual interest
The bank continues to offer enhanced incentives for elderly depositors. Senior citizens receive an additional 0.50 percent premium over the standard rate applicable to general retail customers across these brackets. In addition, super senior citizens aged 80 years and above are entitled to an extra margin of 0.75 percent over general customer rates, providing higher quarterly compounding benefits.
Revised Rates for Savings Account Deposits
Alongside its term deposit revisions, Union Bank of India has established a revised tiered interest rate model for savings bank accounts. Effective from August 10, 2026, the returns based on daily ledger balance ranges stand as follows
- Balances up to ₹50 lakh: 2.50 percent per annum
- Above ₹50 lakh up to ₹50 crore: 2.55 percent per annum
- Above ₹50 crore up to ₹100 crore: 2.60 percent per annum
- Above ₹100 crore up to ₹500 crore: 2.75 percent per annum
- Above ₹500 crore up to ₹1000 crore: 3.00 percent per annum
- Balances exceeding ₹3000 crore: 6.25 percent per annum
For individuals targeting the highest guaranteed return within a medium-term framework, the 555-day retail fixed deposit presents the peak rate on offer at 6.55 percent.
