Union Bank Of India FD Interest Rates 2025

What is a Union Bank of India Fixed Deposit?

Union Bank Fixed Deposit is a savings product where a fixed amount is invested for a specified period to earn assured interest rates. The minimum deposit amount for Union Bank FD is ₹1,000. Available FD types include Regular Term Deposit, Union Tax Saver Deposit (5-year lock-in), Union Monthly Plus (monthly contributions), and Union Flexi Deposit (with sweep-in/out facility). Read on to explore the latest Union Bank of India FD interest rates 2025 in detail.

Key Benefits of Union Bank Fixed Deposits

Union Bank of India offers a range of fixed deposit features that cater to various savings and liquidity needs. Below are the major advantages:

• Higher Rates for Senior Citizens: Senior citizens earn an additional 0.50% interest on most Union Bank FD schemes over and above the applicable card rate. Depositors above the age of 80 get 0.75% extra (under the super-senior citizen category)
• Loan Against FD: Union Bank offers loans up to 90% of the FD amount, helping you avoid breaking the deposit during emergencies. The interest on such loans is usually 1% to 2% higher than the FD rate.
• Premature Withdrawal: Premature closure is permitted on most FDs except the Tax Saver FD. A penalty of 1% on the interest rate may apply if the deposit is withdrawn before maturity.
• Sweep-in/Sweep-out facility: The bank offers a Savings Flexi Deposit Account with auto sweep features. If your savings account balance exceeds ₹50,000, the surplus is transferred into a fixed deposit in multiples of ₹10,000. When needed, money is swept back in multiples of ₹5,000 to maintain liquidity. The linked deposit earns FD rates for 46 days to 1 year, though loans against this type of FD are not allowed.

Union Bank of India Interest Rates

The tables below highlight the applicable interest rates for different tenure slabs across various deposit amounts.

Union Bank of India Interest Rates (Below ₹3 Crore)

*Union Bank FD interest rates w.e.f. April 25, 2025

Union Bank of India Interest Rates for Bulk Deposits 

*Union Bank FD interest rates w.e.f. June 2, 2025

Union Bank of India FD Rates for Bulk Deposits Non-Callable Deposit

*Union Bank FD interest rates w.e.f. June 2, 2025

How to Open a Union Bank of India FD

Follow these step-by-step instructions to open a Fixed Deposit with Union Bank of India through online or offline channels. The process is easy whether you’re a new or existing customer.

1. Online Method

For Existing Customers:

• Log in to Union Bank of India Internet Banking or the Vyom mobile app.
• Navigate to the ‘Deposits’ or ‘Fixed Deposit’ section.
• Click on ‘Open Fixed Deposit’.
• Enter the deposit amount and select the preferred tenure (7 days to 10 years).
• Choose the interest payout frequency (cumulative, monthly, quarterly, etc.).
• Add nominee details and confirm the type of deposit (Tax Saving FD, Regular FD, etc.).
• Review all details and submit the request.
• Your Union Bank of India FD will be booked instantly, and a receipt will be generated.

For New Customers:

• Visit the official Union Bank of India website.
• Click on ‘Open FD’ or navigate to the Vyom digital banking portal.
• Complete your digital KYC via Aadhaar OTP, PAN, or video verification.
• Fill in the FD application with amount, tenure, and nominee details.
• Make the payment using UPI, net banking, or a debit card.
• Receive instant confirmation and your FD account number via email/SMS.

2. Offline Method

For Both New and Existing Customers:

• Visit the nearest Union Bank of India branch.
• Request the Fixed Deposit application form.
• Fill in your personal and deposit details (amount, tenure, interest payout choice).
• Attach your KYC documents (for new customers only).
• Make the payment via cash, cheque, or from your Union Bank account.
• Submit the form to the bank staff and collect your Fixed Deposit Receipt (FDR).

Documents Required for Union Bank of India FD

If you're a new customer, you will need to provide the following documents:

• Proof of Identity: Aadhaar Card, PAN Card, Passport, Voter ID, or Driving Licence
• Proof of Address: Utility bill, Aadhaar, Passport, or bank statement with current address
• Photograph: Recent passport-size photo (for offline applications)
• PAN Card: Mandatory for tax-related compliance and to avoid higher TDS
• Account Details: Union Bank savings or current account details for linking and maturity payout
• KYC: Completed through physical documents (offline) or eKYC/video KYC (online)

Taxation on Union Bank FD Interest

Interest earned on Union Bank of India Fixed Deposits is taxable under the Income Tax Act. TDS at 10% is deducted if the total interest exceeds ₹50,000 for regular individuals and ₹1,00,000 for senior citizens in a financial year. If PAN is not submitted, TDS is deducted at 20%. Tax-saving FDs with a 5-year lock-in offer deductions up to ₹1.5 lakh under Section 80C.

Key Takeaways

Union Bank Fixed Deposits offer interest across various tenures, helping individuals plan their savings according to short- or long-term goals. You can open an FD online via internet banking or mobile app or offline at any branch. Facilities like loans against FD, flexible tenure options, and higher rates for senior citizens add to the overall utility. Before investing, comparing FD Interest Rates from other banks is recommended.