Public sector lenders introduce innovative products with value-added features to improve deposit mobilisation.
In a strategic move to enhance deposit mobilisation, state-owned Canara Bank and Union Bank of India have launched new deposit schemes that combine attractive returns with additional customer-centric benefits.
This development comes as the banking sector faces a deceleration in deposit growth, which slowed to 10.3% in FY 2024-25 compared to 13.5% in FY24.
Most public sector banks have projected a conservative deposit growth outlook of 9–11% for the current fiscal year.
Union Bank of India: Union Wellness Deposit
Union Bank of India has introduced the Union Wellness Deposit, a term deposit product designed to offer both financial returns and health benefits.Â
The scheme offers:
Interest Rate: 6.75% per annum
Tenure: 375 days
Deposit Range:Â
Minimum ₹10 lakh to maximum ₹3 crore
Health Coverage:
Includes a 375-day Super Top-up Health Insurance policy with a ₹5 lakh sum insured and cashless hospitalisation
Target Segment:Â
Resident individuals aged 18 to 75 (single or joint accounts; insurance benefits apply only to the primary holder)
Additional Benefits:Â
RuPay Select Debit Card with lifestyle perks
Senior Citizen Benefit:Â
Additional 0.50% interest rate
Liquidity:Â
Premature withdrawal and loan facility against the deposit
According to Union Bank, this offering aligns wealth creation with health protection, catering to evolving customer needs through a holistic financial product.
Canara Bank: Canara TruEdge
Bengaluru-headquartered Canara Bank has rolled out Canara TruEdge, a differentiated current and savings account (CASA) product.Â
Aimed at enhancing customer segmentation, the offering provides customised banking solutions based on a customer’s financial and operational profile.
Key highlights include:
Benefit Linkage:Â
Charge waivers and fee concessions tied to the Monthly Average Balance (MAB) of the previous month
Personalised Support:Â
Dedicated relationship manager as a single point of contact
Flexibility:Â
Tailored features to meet the specific banking needs of individuals and businesses
Industry Context
Bankers across the sector acknowledge that deposit mobilisation continues to be a challenge, especially in a high-interest rate environment where customers are exploring various investment alternatives.
In this backdrop, banks are increasingly focusing on value-added deposit products that combine competitive interest rates with additional benefits like insurance, lifestyle perks, and enhanced service experiences.
With these innovative schemes, Canara Bank and Union Bank aim to not only attract high-value deposits but also strengthen customer engagement by offering bundled financial solutions.
