UBI launches new deposit scheme

Union Bank of India (UBI) has introduced a new deposit scheme- Union Cash Certificate - which will be in effect till October 31. The deposit scheme has a maturity period from 3 to 5 years and will get 8 per cent interest.

The bank will issue cash certificates with face value of Rs 5,000, Rs 10,000, Rs 25,000, Rs 50,000, Rs 75,000, Rs 1 lakh, Rs 3 lakh, Rs 5 lakh and Rs 10 lakh. But depositors will get the certificates at lower than the face value.

The new scheme also offers 0.5 per cent additional interest to senior citizens.

Depositors can withdraw the amount before the maturity period in special cases and there will be provision for getting loan for 90 per cent of the deposit including interest.

The bank has targeted Rs 3,500 crore through the new scheme, according to a press release. The bank had collected Rs 1,500 crore through its 'Union Double scheme', introduced earlier.