City Union Bank raised fixed deposit rates ahead of the RBI’s June MPC meeting.
It offers up to 7.50 per cent to senior citizens.
The rate applies to FDs up to Rs 3 crore across multiple tenures, with premature withdrawal allowed.
City Union Bank Hikes FD Rates, Offers Seniors Up To 7.50 Per Cent
City Union Bank revised its FD rates on May 29, 2026, ahead of the RBI’s MPC meeting in the coming week. The bank has raised the rates by up to 25 per cent for senior citizens and up to 20 bps for super senior depositors
Summary
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Ahead of the Reserve Bank of India’s (RBI) monetary policy committee (MPC) three-day meeting starting from June 3, 2026, City Union Bank revised its fixed deposit (FD) rates. Amid global uncertainties, a volatile domestic market, higher wholesale inflation, and rising food inflation, some experts expect a 25-basis-point (bps) rate hike in this MPC meeting, but some feel the rates would remain unchanged this time. However, they all believe that the RBI has a tough task to do; that is, to maintain a balance of inflation and economic growth.
In this background, the interest rate offered on FDs is certain, and senior citizens (60 years and above) typically rely on FDs for their simplicity and guarantee. As the City Union Bank has revised its FD rates during the week ending on May 31, 2026, here's a look at the fixed deposit rate offered by the bank across tenures.
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City Union Bank
This private sector bank revised its FD rates on May 29, 2026. Seniors can avail of a maximum deposit rate of 7.50 per cent, up 25 bps from the previous rate of 7.25 per cent. The bank has also raised the rates for super seniors (80 years and above) to 7.55 per cent, 20 bps higher than the previous 7.35 per cent.
Here is the detail of the revised FD rates for both seniors and super seniors:
For Senior Citizens:
6.25 per cent for 181-270 days
6.50 per cent for 271-364 days
6.90 per cent for 365-443 days
7.35 per cent for 444 days
7.40 per cent for 445-554 days
7.50 per cent for 555 days
6.75 per cent for 556 days to three years
6.50 per cent for above three years to 10 years
For Super Seniors:
6.25 per cent for 181-270 days
6.55 per cent for 271-364 days
6.95 per cent for 365-443 days
7.40 per cent for 444 days
7.45 per cent for 445-554 days
7.55 per cent for 555 days
6.80 per cent for 556 days to three years
6.60 per cent for above three years to 10 years
These rates are for FDs up to Rs 3 crore, which can be withdrawn prematurely at any time after paying a penalty.
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