City Union Bank FD Interest Rates 2026

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The guaranteed return plans have the advantage of both guaranteed returns as well as life insurance cover. The plans are perfect when the investors are more interested in protecting their capital rather than taking a risky investment, since the returns are not exposed to market fluctuations.

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.Senior citizens receive an additional 0.50% interest from the first year.

City Union Bank FD Rates: Latest updates 

City Union Bank changed the interest rates in August of fixed deposits of less than Rs 3 crore. The interest rates of the bank after revision are 4%- 6.75% per annum for the general public on a tenure of 7 days to 10 years.

Comparing FDs with Other Options 

Fixed deposits stand out as a secure and reliable investment option. Unlike market-linked options such as mutual funds or stocks, FDs offer guaranteed returns and are not impacted by market volatility. They are also a safer alternative to a regular savings account, providing a significantly higher interest rate and capital protection through DICGC insurance.

City Union Bank Fixed Deposit: Key Highlights 

City Union Bank FD Interest Rates 2026

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

Revised rates below ₹3 Crore

*City Union Bank FD interest rates (Callable) w.e.f. June 13, 2025.

Revised rates above ₹3 Crore

*City Union Bank FD interest rates w.e.f. December 08, 2025. The above rates are for deposit amounts from ₹3 crore to ₹5 crore.

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

Types of City Union Bank Schemes 

1. Regular Fixed Deposit 

    The City Union Bank regular fixed deposit allows you to apply online with a bulk deposit of up to 1 crore and above. At the end of every quarter, the interest shall be calculated and added to the principal in the case of a cumulative deposit.

   Tenure - 7 days to 10 years 

   Minimum Deposit Amount - Rs 100 individuals, Rs 1000 MSMEs, Rs 10,000 corporates

   Pre-Closure Facility - Yes, applicable 

   Overdraft Option - Yes, available 

2. CUB Flexifix Deposit Schemes 

   CUB provides the advantage of fixed deposit and withdrawal flexibility incorporated in this scheme. Withdrawal of the amount is in units of Rs 5,000 each with pro-rata interest.

   Minimum Deposit Amount - Rs 10000 

   Tenure - 30 days to 5 years 

   Loan Facility - Not Available 

   Overdraft Facility - Yes, available 

   Interest Payout Options - monthly / quarterly / half-yearly / annual basis

   Auto-Renewal - Available 

3. CUB Income Tax Saver Deposit 

   The resident individual, single, and joint accounts, and HUF are eligible for the CUB Income Tax Saver Deposit scheme. Under this scheme, you can save Tax under Section 80C.

   Tenure - 5 years (Lock-in)

   Minimum Deposit Amount - Tax Saver Silver – Rs 100, Tax Saver Gold – Rs 1,000

   Loan Facility - Not available 

   Pre-closure - Not available 

4. CUB FCNR Fixed Deposit (NRIs) 

   Deposit may be stored in foreign currencies such as AUD, CAD, EUR, GBP, JPY, USD, and SGD. It may be opened as Cumulative or as Non-Cumulative, and in conjunction with a Non-Resident on Either or Survivor/or Former Survivor basis.

   Tenure - starting from 1 year to 5 years 

   Inward Remittances Charges - No Charges

   TDS - No TDS on interest earned 

   Funds Transfer - Can be transferred from FCNR or NRE Account

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 of 0.5% from the first year onwards, 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).

How to Open a City Union Bank FD

City Union Bank fixed deposits are a popular choice for individuals seeking secure and stable returns on their savings. CUB FDs allow you to make a one-time deposit for a predetermined period. You can open a fixed deposit with City Union Bank through a simple process, both online and offline.

Online 

If you are an existing customer, you can easily open a CUB FD online through the bank's internet banking portal or mobile app.

• Log In: Access your CUB account by logging in to the internet banking portal or the CUB Mobile Banking App.
• Navigate to the FD Section: Go to the "Deposits" section and look for the "Apply Now" or
• Go to "E-Deposit": Click on the “E-Deposit” option to start the FD application.
• Fill out Details: Select your desired FD scheme and enter all the required details, including the deposit amount, the tenure, and your preferred interest payout frequency.
• Add Nominee Details: You have to provide nominee details.
• Review and Accept: Submit the form after reviewing the information.
• Confirmation Message: You will receive a notification once your FD is successfully created.

 Offline FD Account Opening

For those who prefer a traditional approach, you can visit a nearby City Union Bank branch to open a fixed deposit.

• Visit the Branch: Visit your nearest City Union Bank branch 
• Carry Documents: Take ID and address proofs, and a passport-size photograph.
• Fill out the FD Form: Obtain and fill out the fixed deposit application.m
• Submit Documents & Deposit Funds: Submit the filled-out form along with the required KYC documents.
• Get the FD Receipt: You will be provided with an FD receipt as confirmation of your deposit after submitting.

Eligibility of City Union Bank FD

Any person in their capacity. More than one person in their joint family. 

• Any minor (under a guardian’s name)
• Sole Proprietary concern
• Members of charitable trusts
• Educational institutions
• HUF
• Clubs
• Private Traders 
• Merchants
• Agents
• Professionals
• Partnerships Firms
• Societies & Corporates

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.