For opening a fixed deposit with ease, and at attractive interest rates, Corporation Bank Fixed Deposit is a good move.
RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.
Corporation Bank and Andhra Bank have been merged under Union Bank of India. Visit the Union Bank of India FD Interest Rates page for more details
|Investment period||FD rates for regular deposit||FD rates for Senior Citizens|
|7 days to 14 days||3%||3.5%|
|15 days to 45 days||3%||3.5%|
|46 days to 60 days||3.75%||4.25%|
|61 days to 90 days||3.75%||4.25%|
|91 days to 120 days||4.25%||4.75%|
|121 days to 180 days||4.3%||4.85%|
|181 days to 270 days||4.5%||5%|
|271 days to 364 days||5.25%||5.75%|
|1 year to 2 years 364 days||5.3%||5.8%|
|3 years to 10 years||5.55%||6.05%|
* The above rates are applicable for deposits of below Rs. 1 crore. ** Figures mentioned in the above table are subject to change without prior information.
Corporation Bank offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of Corporation Bank have a higher interest rate compared to their saving deposits. Benefits of opening an FD account in Corporation Bank are:
Premature closure of Term Deposit with Corporation Bank is along with the lower interest rate of 1% than the contracted rate. The penal provisions for premature closure on Corporation Bank FD are subject to change from time to time and may also vary with deposit schemes.
Corporation Bank offers the loan up to 90% against its own deposit. Note that Corporation Bank will not give you the loan against FD of any other bank. Corporation Bank offers Loan against FD at the rate of 5.5% to 7.5% Maximum loan tenure is restricted up to the maximum tenure of the FD.
Illustration – Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in Corporation Bank. The borrower later decided to take the loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.
|Similar Banks Offering FD|
|Indian Bank||HSBC Bank||Axis Bank||IDFC Bank|
|Central Bank of India||IDBI Bank||HDFC||Andhra Bank|
|Canara Bank||Citibank||Allahabad Bank||RBL|
|Bank of India||Bank of Baroda||PNB||SBI|
|Union Bank of India||Kotak Mahindra Bank||ICICI|