City Union Bank Senior Citizen FD Rates 2025

What is a City Union Bank Senior Citizen FD?

A City Union Bank Senior Citizen FD is a fixed deposit scheme for individuals aged 60 years and above, offering higher FD interest rates than regular citizens' FD rates. Senior citizens can choose interest payouts on a monthly, quarterly, half-yearly, or cumulative (at maturity) basis. The minimum investment for a regular FD is ₹100 with no upper cap, making it accessible for all senior investors. For Flexifix FDs, the minimum deposit required is ₹10,000, and additional amounts must be in multiples of ₹5,000.

Key Benefits of City Union Bank Senior Citizen FD

The following are some key benefits provided to senior citizens:

• Flexible Tenure Options: City Union Bank allows senior citizens to choose deposit tenures ranging from 7 days to 10 years, helping them align their savings with both short-term needs and long-term financial plans.
• Auto-Renewal Facility: With City Union Bank’s auto-renewal feature, senior citizens who prefer not to visit the bank frequently can ensure their fixed deposits are renewed automatically upon maturity, providing uninterrupted returns with added convenience.
• Sweep-in/Sweep-out Facility: City Union Bank provides a Flexifix Deposit facility linked to a savings account. When the account balance exceeds a specified threshold, the surplus is automatically transferred to a fixed deposit in multiples of ₹5,000, earning higher interest. If the balance falls below the threshold, funds are withdrawn from the fixed deposit in similar multiples without penalty. This ensures optimal returns while maintaining liquidity.
• Loan / OD Option Available: Under City Union Bank FD, senior citizens can easily avail the loan or overdraft option and enjoy its benefits.
• Premature Withdrawal: Premature withdrawal is allowed for regular and Flexifix FDs but not for Tax Saver FDs. If withdrawn before maturity, the interest is usually paid at a reduced rate or after applying a penalty of around 1%.

City Union Bank FD Interest Rates for Senior Citizens

Here are the City Union Bank FD interest rates for senior citizens across various deposit tenures:

City Union Bank FD interest rates for senior citizens (Term Deposit Below 3 Crore- Callable)

*City Union Bank senior citizens' FD rates w.e.f. June 13, 2025

How to Open a City Union Bank Senior Citizen FD

Opening a City Union Bank Senior Citizen Fixed Deposit is easy. You can do it online or by visiting a branch, whichever is convenient.

1. Online Method

   Through the Internet Banking Portal

   • Log in to the City Union Bank internet banking platform.
   • Navigate to “Deposits → Open Fixed Deposit.”
   • Select the FD type (e.g., Senior Citizen), and enter the deposit amount, tenure, interest payout frequency, and nominee details.
   • Submit the form. The confirmation is generated immediately.

   Through Mobile App (CUB e‑Deposit)

   • Download and log in to the City Union Bank mobile app.
   • Go to “E‑Deposit → Fixed Deposit.”
   • Select the Senior Citizen FD option, fill in the required details, and submit.
   • A digital FD receipt is generated instantly for your records.

2. Offline Method

   • Obtain the Fixed Deposit application form and specify the Senior Citizen FD option.
   • Fill in the required details: name, deposit amount, tenure, nominee, and interest payout instructions.
   • Submit the completed form along with KYC documents and the deposit amount (via cheque or cash).
   • The bank will issue a fixed deposit receipt and account details upon successful processing.

Taxation on City Union Bank Senior Citizen FD Interest

• The interest you earn on a City Union Bank Senior Citizen Fixed Deposit is fully taxable. As of the current financial year (FY 2025-26), the TDS limit for senior citizens has been increased. City Union Bank will deduct 10% TDS only if your total interest income from all your deposits with the bank exceeds ₹1,00,000 in a financial year.
• If your total taxable income (including FD interest) is below the basic exemption limit, you can prevent the bank from deducting TDS by submitting Form 15H.
• You can claim a deduction of up to ₹50,000 on the total interest income earned from all your deposits (including fixed deposits, recurring deposits, and savings accounts) held with banks, cooperative societies, and post offices.

Key Takeaways

City Union Bank FD interest rates for senior citizens offer up to 0.50% higher interest than regular FDs, which start from 4.00% p.a. to 7.00% p.a., based on the chosen tenure. Individuals aged 60 and above can open an FD online or at a branch with a minimum deposit of ₹100. However, one limitation of City Union Bank’s Senior Citizen FD is that the additional interest benefit may be modest for shorter tenures. Seniors seeking higher short-term returns may consider comparing other investment options based on their financial needs.