The Mumbai based Union Bank of India has modified its interest rates on certain fixed deposits. The rates have been revised for FCNR (B) deposits and the new rates have come into effect from January 1, 2013.

The interest rates have been hiked for yen and Canadian dollar denominated term deposits.

On the other hand, the interest rates for Pound denominated term deposits have been slashed. Deposits having one to two year maturity period will now earn 3.01 percent, a decrease from the earlier 3.03 percent. Two to three year deposits will now earn 2.71 percent while 3 to 4 years deposits will earn interest of 3.49 percent.

The interest rates for Euro and Australian dollar based fixed deposits have also been reduced. One to two year deposits will earn interests of 2.44 percent and 5.68 percent for Euro and Australian dollar term deposits respectively. Three to four year deposits will attract interests of 3.48 percent and 5.97 percent for Euro and Australian dollar term deposits respectively.