UCO Bank Short Term FD Rates

What is UCO Bank Short Term FD?

UCO Bank Short Term FD is a fixed deposit that is offered to its customers as a service where they can invest their money for a short-term period of time and also receive guaranteed returns. This scheme has a minimum deposit of ₹1,000, and no maximum limit. It is a secure investment option with guaranteed returns. Short-term FDs have a tenure of 7 days up to 1 year. Investors can also nominate a beneficiary and can transfer their FD across branches when necessary.

UCO Bank Short Term FD Interest Rates

Here are the revised interest rates applicable to retail domestic term deposits below ₹3 crore:

* UCO Bank Short Term FD interest rates w.e.f June 23, 2025.

Features of UCO Bank Short Term FD

UCO Bank has a number of attractive features to investors in Short Term FD:

• Flexible Tenure: You can select FD tenures between 7 days to 1 year and this makes it appropriate for customers looking to have short-term investment opportunities.
• Staff and Retired Staff Preferential Rates: UCO Bank offers its staff and retired staff better rates of interest on fixed deposits as per the internal policy of the bank during booking.
• Auto Sweep Facility: UCO Bank sweep in FD allows you to earn higher interest on the surplus in your short-term FD, and yet retain the advantages of liquidity. Classic and Silver accounts require ₹25,000 and ₹50,000, respectively, as the minimum balance requirement.
• Assured Returns: Earn fixed returns at the contracted interest rate for the chosen tenure. The customers can choose how often they want to get interest payments: monthly, quarterly, or all at once.
• Loan Against Short-Term FD: UCO Bank gives loans or overdrafts at up to 90% of the value of your short-term FD, allowing you easy access to a loan, with your deposit still earning interest.

How to Open a UCO Bank Short Term FD?

Opening a UCO Bank Short Term FD is simple and can be done either online or offline. Here’s how:

Online Process

Opening a UCO Bank Short-Term FD online is quick and convenient, allowing you to invest from the comfort of your home.

• Log in: Access UCO Bank's internet banking or mobile app.
• Select FD: Choose your desired short-term FD tenure.
• Check Rates: Review the latest FD interest rates for general or senior citizen deposits.
• Enter Amount: Deposit from ₹1,000 with no upper limit.
• Confirm Booking: Fill in the details and complete the transaction.
• Manage FD: Track, renew, or close the FD via online banking or the app.

Offline Process

UCO Bank Short-Term FD can be easily opened offline by going to any branch of UCO Bank.

• Visit Branch: Go to your nearest UCO Bank branch with identity and address proof.
• Take FD Form: Request the short-term FD application form.
• Consider Alternatives: Negotiate terms of tenure, interest rates and benefits with the banker.
• Fill Form: Fill in the details of the deposit, tenure, and nominee.
• Submit and Deposit: Submit the form and the amount of deposit through cash, cheque or transfer.
• Receive Receipt: Take your FD receipt as evidence of your deposit.

Eligibility Criteria for UCO Bank Short Term FD

Customers who want to open a UCO Bank Short Term FD are required to meet the following criteria:

• Eligible Customers: UCO Bank Short Term FD could be opened by any resident Indian. The nomination facility will also be used to assist in the easy settlement of claims.
• Deposit Requirement: ₹1,000 is the minimum amount of deposit and there is no maximum limit. The deposits of ₹3 crores and above are classified as bulk deposits and can have different interest rates and terms.
• KYC Compliance: A KYC verification is mandatory. Customers will be required to present identity and address evidence, especially in the case of opening of FD on the counter.
• Bulk Deposits: The deposit exceeding 3 crore is considered a bulk deposit, and it may attract various rates. Before investing, customers are encouraged to verify the relevant rates.

Taxation on UCO Bank Short Term FD

Interest on UCO Bank Short Term FDs is subject to taxation under the Income Tax Act. The bank will impose TDS (Tax Deducted at Source) when the interest exceeds the limit set. Under the existing regulations governing the income tax, there is an applicability of TDS where the annual interest on an FD exceeds ₹50,000 for general citizens and ₹1,00,000 for seniors. However, where the income earned is less than the taxable income, the depositors can claim TDS exemption by filling Form 15G/15H. The interest accrued is taxable income of the depositor that is subject to tax according to the tax slab.

Key Takeaways

UCO Bank Short term FD is a secure and versatile investment that enables deposit holders to get assured returns on their deposits starting with ₹1,000. The rates of interest are between 2.90% and 6.30% for general citizens and between 3.15% and 6.55% to senior citizens. These FDs are either opened online or offline and the interest is paid every quarter or upon maturity. Early withdrawal is permissible with a penalty and the Auto Sweep option guarantees liquidity and attracts more interest.