Canara, Union Bank announce special deposit schemes to boost growth

State-owned Canara Bank and Union Bank of India on Tuesday announced special products to boost resource mobilisation.

 

It comes amid slowing deposit growth, which fell to 10.3 per cent in the financial year 2024-25 (FY25) from 13.5 per cent in FY24. Most public sector banks have projected deposit growth of 9-11 per cent for the current financial year.

 

Under the scheme, Union Bank will offer 6.75 per cent for deposits of 375 days, for a minimum deposit of ₹10 lakh, up to ₹3 crore. The scheme includes a 375-day Super Top-up Health Insurance cover, offering a sum insured of ₹5 lakh with cashless hospitalisation facilities.

 

Bengaluru-based Canara Bank launched Canara TruEdge, a current account and savings account product, to deliver enhanced customer segmentation and provide solutions tailored to their specific operational and financial works, the lender said.

 

The product offers a flexible benefit system like charge waivers and concessions which is linked to the previous month’s Monthly Average Balance (MAB).

 

Bankers said deposit mobilisation continues to remain a challenge which is prompting them to come up with special schemes.

 

Additionally, the product focuses on providing personalised and dedicated support through a designated relationship manager, serving as a single point of contact to address all the banking requirements of the institution.

 

Similarly, Union Bank’s special scheme also focused on bringing more deposits by providing benefits of wealth creation and health benefits in one platform.

 

“The Union Wellness Deposit is strategically crafted to promote both wealth creation and health protection by seamlessly integrating health insurance with a term deposit product. Additionally, it offers a range of lifestyle benefits through the RuPay Select Debit Card,” the bank said in a statement.

 

The scheme is available to resident individuals between 18 and 75 years of age, either individually or jointly. For joint accounts, only the primary account holder will be eligible for the insurance coverage, it said.

 

It offers a minimum deposit amount of ₹10 lakhs and a maximum of ₹3 crores, with facilities for premature closure and loans against the deposit.

 

The scheme has a fixed tenure of 375 days and provides an attractive rate of interest at 6.75 percent per annum, with an additional 0.50 percent interest for senior citizens.

 

“Deposit growth is still muted hence products which give multiple benefits serve best to mobilise deposits. It also targets senior citizens, which currently are one of the most important customers,” said a banker.