UCO Bank FD Premature Withdrawal

UCO Bank FD Premature Closure Penalty Charges

The UCO Bank FD foreclosure charges table states that it applies to term deposits, including RD and RDUSS accounts.

*Premature withdrawal rules and penalty rates updated as per prevailing UCO Bank guidelines as of October 2026.

How Interest Is Recalculated on Premature FD Closure

UCO Bank's formula turns on a comparison in time, not a comparison between the completed tenure and the original tenure. The bank compares the applicable UCO FD rate for the period the deposit has remained with the bank as on the date of deposit with the present rate and uses whichever is lower. Whichever of the two figures is lower becomes the base rate, and the applicable penalty is then deducted from it.

Eligible Rate = Lower of the applicable rate on the date of deposit and the present rate − applicable penalty.

Step-by-Step Calculation Example For UCO Bank Premature Withdrawal

The following example shows how to recalculate the UCO Bank FD interest rate and apply the premature closure penalty.

Consider a ₹5,00,000 UCO Bank deposit, under the ₹15 lakh range, booked under a 3-year tenure at 6.00% p.a. and closed after completing 1 year. The illustrative 1-year rate as of the booking date is 6.10% p.a.

Suppose the 1-year rate has since moved to 5.90% p.a. as of the closure date. UCO Bank takes the lower of the two, 5.90% p.a., and deducts the 1% penalty, resulting in an applicable rate of 4.90% p.a.

How to Close a UCO Bank FD Prematurely

UCO Bank FD premature withdrawal follows the applicable branch-based process; submit the required documents.

• Visit the branch: Visit a UCO Bank branch and submit a request for premature closure, subject to the bank’s applicable procedures.

• Inform branch staff: Let the staff know you intend to close the FD prematurely.

• Fill the closure form: Submit the required premature-closure request and documents as specified by the bank.

• Submit KYC documents: Provide the documents requested by the bank for verification.

• Submit the FD receipt: Provide the deposit-related documents required by the bank.

• Receive credited proceeds: The FD Premature Withdrawal proceeds are paid according to the bank’s applicable procedure after recalculation of interest.

UCO Exceptions and Special Conditions on Premature Withdrawal

A small number of scenarios are treated differently under UCO Bank's standard penalty structure.

• Death of the Depositor: On the death of a depositor, premature payment may be made to the survivor or nominee/legal heirs, as applicable under UCO Bank's rules. The premature termination of the term deposit after the depositor's death does not attract any penal charges, subject to the bank's applicable rules and required claim process.

• UCO Green Deposits: UCO Green Deposits provide a premature withdrawal facility subject to the bank’s extant premature-withdrawal guidelines.

Non-Callable Deposits at UCO Bank

UCO Bank offers a dedicated single Non-Callable Bulk Term Deposit for deposits of ₹3 crore and above. The bank separately lists its regular retail term deposits, including the special 333-day, 444-day and 535-day schemes, which are subject to the UCO Bank term deposit premature closure rules. Therefore, UCO Bank’s non-callable deposit facility applies to specified bulk deposits rather than its regular retail FD products.