City Union Bank FD Interest Rates 2025

What is the City Union Bank Fixed Deposit?

City Union Bank provides fixed deposits for a minimum period of 7 days and a maximum period of 10 years. Interest can be earned monthly, quarterly, half-yearly, or annually. For cumulative deposits, interest will be compounded quarterly and also added to the principal amount. This article gives an overview of City Union Bank FD and the various modes for opening a fixed deposit account in the bank.

Key Benefits of City Union Bank Fixed Deposit

Here are the main benefits of opening a City Union Bank FD.

• Low Minimum Deposit: You can start with as little as ₹100 (for individuals), ₹1,000 (for MSMEs), or ₹10,000 (for corporates), making it accessible for all investor types.
• Interest Payout Options: Earn simple interest on a monthly, quarterly, half-yearly, or annual basis. Cumulative deposits grow faster through quarterly compounding.
• Extra Interest for Senior Citizens: Senior citizens receive higher interest rates from the first year onwards, with rates up to 7.70% p.a., depending on tenure and scheme.
• Loan and Overdraft Facility: Loans or overdrafts can be taken against your FD, offering liquidity without withdrawing the deposit.
• Auto Renewal and Pre-Closure: You can choose auto-renewal for uninterrupted investment and request pre-closure based on your liquidity needs. Pre-closure charges and penalties apply.
• Premature Withdrawal Penalty: If you close your FD before the maturity date, the bank will typically reduce the interest rate by 1% for the actual tenure as a penalty.
• Tax Saver FD Available: 5-year Tax Saver FDs are offered for eligible deductions under Section 80C (not applicable for senior citizen rates).

City Union Bank FD Interest Rates

Here are the latest interest rates for various City Union Bank Fixed Deposit options, categorised by deposit type and tenure:

Domestic/NRO Callable Term Deposits 

*City Union Bank FD interest rates w.e.f. June 04, 2025

Domestic/NRO Non-Callable Term Deposits (₹1 – < ₹3 Crores) – CUB Deposit Plus

*City Union Bank FD interest rates w.e.f. June 04, 2025

Domestic/NRO Rupee Term Deposits of ₹3 Crores (Bulk Deposit) and above

*City Union Bank FD interest rates w.e.f. May 23, 2025

Domestic/NRO Rupee Term Deposits of ₹3 Crores and above

*City Union Bank FD interest rates w.e.f. May 23, 2025

Compare with other banks to know the best FD Interest Rates in India and choose FD that meets your needs.

How to Open a City Union Bank FD

City Union Bank offers both online and offline methods to open a Fixed Deposit (FD). Here’s a step-by-step guide based on your preferred mode:

1. Online Method

   For existing City Union Bank customers with internet banking:

   Mobile App

   • Download and log in to the CUB mobile app.
   • Go to the E-Deposit section and choose the deposit type.
   • Enter deposit tenure, amount, interest payout preference, and nominee details.
   • Submit the form. You’ll be notified once the FD is created.

   Internet Banking

   • Log in to the City Union Bank Internet Banking portal.
   • Navigate to the “Personal” tab and select “Deposits.”
   • On the FD page, click “Apply Now.”
   • Enter deposit tenure, amount, and interest instructions.
   • Submit the form to create your City Union Bank FD.

2. Offline Method

   For those who prefer visiting a branch:

   • Visit the nearest CUB branch.
   • Fill in the FD form indicating tenure, amount, and interest payout.
   • Submit it along with a copy of PAN and Aadhaar.
   • The bank will process and provide your FD receipt.

Documents Required for City Union Bank FD

To open a City Union Bank FD, you may need:

• PAN Card
• Aadhaar Card (or another valid ID)
• Address Proof
• Passport-size photograph
• Existing account details (if applicable)

Taxation on City Union Bank FD Interest

Interest income from City Union Bank Fixed Deposits is fully taxable under “Income from Other Sources.” If the total FD interest exceeds ₹50,000 in a financial year (₹1 lakh for senior citizens), the bank deducts TDS at 10%, provided PAN is submitted. Without PAN, the TDS rate increases to 20%. Individuals whose total income is below the taxable limit can avoid TDS by submitting Form 15G/15H. Regardless of TDS, all interest earned must be declared in the income tax return (ITR).

Key Takeaways

City Union Bank FD interest rates reward senior citizens with up to a 7.70% return under non-callable deposits. With small entry values, varied payout options, and up to a 10-year tenure, CUB FDs are suitable for different investment requirements. Senior citizens can open an FD through their phone, online banking, or by going to the nearest branch. Auto-renewal, loans against the FD, and pre-closure are the value-add features of the product, extending flexibility and convenience.