UNION BANK of India (UBI) today launched a new term deposit product, ‘Union Cash Certificate’. The bank will pay eight per cent interest on deposits, which have a short-term maturity period of three to five years.
The certificate comes in nine denominations ranging from Rs 5,000 to Rs 10 lakhs. The rate of interest for senior citizens is 8.5 per cent.
Bank’s Assistant General Manager, J D Elias, said the interest rate for this particular product was higher than the rates offered by other banks. He said certificates will be issued at a discounted value.
For instance, if a person wants five-year term certificate for Rs 1 lakh, he or she will have to pay roughly Rs 67,000. The annualised yield for 5-year term works out to be 9.72 per cent.
The depositors will have the facility of premature withdrawal subject to Bank’s rules, and can also avail 90 per cent loan or overdraft against the deposits.
Elias said the Bank has set a nationwide target of Rs 3,500 crore while the target for Indore is Rs 100 crore. Certificates will be issued till October 31. “The scheme is an ideal instrument to save for children’s higher education, marriage, secured retired life, and to meet any other contingency.”
{{/usCountry}}Elias said the Bank has set a nationwide target of Rs 3,500 crore while the target for Indore is Rs 100 crore. Certificates will be issued till October 31. “The scheme is an ideal instrument to save for children’s higher education, marriage, secured retired life, and to meet any other contingency.”
{{/usCountry}}The bank had earlier come out with another scheme ‘Union Double’ which had evoked good response as the Bank had collected Rs 1,500 crore against its target of Rs 1,000 crore.