Union Bank launches new deposit scheme

Mumbai, Jan 15 (UNI) Union Bank of India has launched Union Double Deposit Scheme with interest rate of eight per cent per annum and value addition of insurance cover to the depositors.

The Bank's Chairman and Managing Director M V Nair told mediapersons here today that ''However, in light of current interest rate scenario and with a view to provide better returns to customer, the bank has raised its interest rates under the scheme to 8.32 per cent per annum. The insurance cover will continue under the revised scheme also. The minimum amount of the deposit is Rs 1,000 and there is no ceiling on the maxmium amout. The scheme will be close on March 31, 2007.

The depositor will now be able to double this money in a shorter span such as 101 months and reap the benefit of higher annualised return of 11.88 per cent. The interest rates at 8.32 per cent at present is highest in the slab of seven years and above maturity period and better than many of other saving instruments in the market. Under the insurance cover, premium payable it upfront and it is optional. The very unique feature of the product is that the wealth grows alongwith life cover. The cover is to the extent of the residual interest payable from the date claim arises till maturity period with a cap of Rs five lakh. As the cover is under group policy, premium is very competitive and reasonable.

''It is free cover such as without any medical examination for individuals upto the age of 45 years provided the sum insured is upto Rs five lakh from age 46 to 50 years provided the sum insured is upto Rs four lakh and from 51 to 55 years provided the sum insured is upto Rs three lakh. The cover is available for any person in the age of 18 to 55 years. Even in case of minor deposit, cove is available on the life of parent. The insurance cover with the maturity value of deposit will be double the principal amount in case of any unfortunate event happening during subsistence of the deposit,'' he added.

UNI