Ruchi SrivastavaIn 2025, fixed deposits (FDs) remain a popular investment choice for those seeking safe options with steady returns. For investors looking to earn more this year, Union Bank of India and RBL Bank have revised their FD interest rates for deposits below ₹3 crore, offering rates of up to 8.5% for select customer categories. Union Bank’s updated rates came into effect on April 25, 2025, while RBL Bank will implement its changes from May 1, 2025.
History and Overview of RBL Bank
RBL Bank, originally called Ratnakar Bank Limited, is among the oldest private sector banks in India, established in 1943 in Kolhapur, Maharashtra. It began as a regional lender catering primarily to small and medium businesses in western India, but underwent significant restructuring in the late 2000s.
After 2010, with fresh leadership and investment, the bank broadened its scope nationwide, implementing major strategic and operational reforms. In 2014, it rebranded as RBL Bank to reflect its modern and technology-oriented vision.
Today, the bank serves more than 12 million customers across both rural and urban areas. Its offerings span retail, commercial, corporate, and treasury banking services. RBL Bank has also earned recognition for its commitment to financial inclusion, particularly in underserved regions.
Publicly traded on the NSE and BSE, the bank continues to expand both its digital services and branch network, now present in over 28 states and union territories across India.
History and Overview of Union Bank
Union Bank of India was founded on November 11, 1919, in Mumbai, with its inauguration led by Mahatma Gandhi, symbolizing its deep roots in the values of India’s freedom movement. Established by Seth Sitaram Poddar, the bank was created to address the financial needs of Indian enterprises and the general public in the pre-independence era.
Another key development occurred in April 2020, when Andhra Bank and Corporation Bank were merged with Union Bank, significantly strengthening its position in the public banking sector. The merger enhanced its operational scale, branch network, and customer base, making it one of India’s largest public sector banks.
Union Bank offers a broad suite of financial services, including retail and corporate banking, MSME loans, agricultural finance, and digital banking solutions. It maintains a strong commitment to innovation and reaching underserved communities, serving millions of customers across both rural and urban areas.
Additionally, the bank has expanded internationally, with offices and branches in Hong Kong, Dubai, Sydney, and London, facilitating global trade and services for non-resident Indians. Headquartered in Mumbai, Union Bank remains a key player in India’s financial system.
Union Bank of India FD Interest Rate 2025
Union Bank of India now offers fixed deposit (FD) interest rates ranging from 3% to 7.15% for general customers, depending on the deposit duration, which spans from 7 days to 10 years.
Senior citizens receive a slightly higher rate, between 3.50% and 7.55%, while super senior citizens (those aged 80 and above) benefit from even better returns, with rates ranging from 3.75% to 7.85%.
For shorter terms, the interest rate structure is as follows:
- 7 to 45 days: 3.5% per annum
- 46 to 90 days: 4.5%
- 91 to 120 days: 4.8%
- 121 to 180 days: 5%
- 181 days to less than 1 year: 6.25%
A 1-year deposit and a 399-day deposit both offer 6.75%, while a 400-day deposit yields a slightly higher 6.90%.
The highest rate of 7.15% is available for a 456-day FD. For terms above 1 year up to 3 years, the interest ranges between 6.6% and 6.7%, and for tenures over 3 years up to 10 years, the rate is 6.5%.
RBL Bank FD Interest Rates 2025
RBL Bank has updated its interest rates for fixed deposits (FDs). For deposits under Rs 3 crore, regular customers can now earn interest ranging from 3.5% to 7.75%, depending on the tenure, which spans from 7 days to 10 years.
Senior citizens are eligible for enhanced rates between 4% and 8.25%, while super senior citizens (80 years and above) receive the highest benefits, with rates ranging from 4.25% to 8.50%. The bank offers an additional 0.50% for senior citizens and 0.75% extra for super senior citizens over the standard rates.
Additionally, RBL Bank will reduce its savings account interest rates by up to 1% (100 basis points) for selected balance tiers. These revised savings rates will come into effect on May 1, 2025.
Highlights of RBL Bank Special FD Offers
RBL Bank Fixed Deposit Highlights:
- Top interest rate: Senior citizens can earn up to 8.5% per annum.
- Standard rates: General customers can get between 7.8% and 8.2%, based on the chosen tenure.
- Tenure flexibility: FD options are available for durations ranging from 1 year to 5 years.
- Early withdrawal: Allowed with a minor penalty for premature closure.
Highlights of Union Bank of India FD offers
Union Bank of India, a leading public sector bank, has introduced attractive fixed deposit (FD) rates. Returns go up to 8.5% per annum for select customer groups, such as super senior citizens aged over 80.. Senior citizens and regular depositors are also offered competitive interest rates.
Highlights of Union Bank’s FD rates:
- Super Senior Citizens: Earn up to 8.5% p.a.
- Senior Citizens: Interest rates range from 8.0% to 8.3% p.a.
- General Customers: Get between 7.3% and 7.75% p.a., depending on tenure
- Special Tenures: Limited-time offers available on 400-day and 600-day fixed deposits
Who is eligible for the 8.5% FD Interest Rate?
Although the 8.5% FD rate is highly attractive, it’s not available to all investors. This top rate is usually reserved for:
- Senior citizens aged 60 and above
- Super senior citizens, typically 80 years and older (as seen in banks like Union Bank)
- Limited-time promotional schemes tied to specific deposit tenures
Final Thoughts
The surge in FD interest rates in 2025 presents a valuable opportunity for cautious investors. With RBL Bank and Union Bank offering returns as high as 8.5%, especially for senior and super senior citizens, it’s a great time to secure attractive, low-risk returns. If you’re seeking a safe investment with stable earnings, now may be the ideal moment to take advantage of these FD offers — before rates potentially drop.
Sources: msn.com
