News | Canara, Union Bank Roll Out Special Deposit Schemes Amid Growth Push

Canara, Union Bank Roll Out Special Deposit Schemes Amid Growth Push

News

14 May 2025

1 min read

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In a strategic move to attract more deposits and fuel credit growth, Canara Bank and Union Bank of India have launched special term deposit schemes offering higher interest rates for specific tenures. These initiatives are part of broader efforts by public sector lenders to shore up liabilities ahead of an anticipated surge in loan demand.

Canara Bank's new scheme offers a 7.5% annual interest for senior citizens and 7% for general depositors for a tenure of 444 days. Union Bank, meanwhile, has rolled out a similar high-return scheme targeting retail depositors, aiming to strengthen its deposit base.

While these special fixed deposit products aim to lure savers with attractive rates, industry experts suggest banks may exercise caution in adjusting deposit rates further. Many are likely waiting for clearer liquidity signals from the RBI before recalibrating broader rate strategies.

References: Business Standard, Economic Times