Union Bank launches short-term deposit scheme

Chandigarh, Sep 2 (UNI) Union Bank of India has launched a short-term deposit scheme 'Union Cash Certificate' to tap people's savings.

Talking to mediapersons here today, General Manager S C Singh said the deposit scheme which came into effect yesterday would be for three, four and five years with an interest rate of eight per cent.

The senior citizens were entitle to an interest rate of 8.5 per cent, he added.

Under the scheme, the depositor could get a cash certificate by depositing a lower amount, depending on the deposit period, than the face value of the certificate and the interest would be credited to the principal amount on a quarterly basis, Mr Singh said.

The certificates would be issued under nine denominations of Rs 5000, 10,000, 25,000, 50,000, 75,000, 1,00,000, 3,00,000, 5,00,000 and 10,00,000, he added.

As the interest would be credited to the principal amount on a quarterly basis, the cumulative interest rate would be 8.94 per cent for three years, 9.32 per cent for four years and 9.72 per cent for five years, he said.

The scheme was open for those eligible to open savings and current accounts, except NRIs, till October 31, he added. The bank was expecting to source around Rs 3,500 crore through this scheme.

The bank collected almost Rs 1,500 crore under the recently launched 'Union Double' deposit scheme, he added.

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