Union Bank of India Senior Citizen FD Rates 2025

Union Bank of India senior citizen FD rates come with preferential interest benefits, offering an additional 0.50% over the applicable card rate. For super senior citizens aged 80 years and above, the preferential rate increases to 0.75%. The interest rates for senior citizens range from approximately 3.90 % to 7.35%, depending on the deposit amount and tenure, which can span from 7 days to 10 years.

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What is the Union Bank of India Fixed Deposit?

Union Bank of India Senior Citizen Fixed Deposit is a dedicated savings product designed exclusively for individuals aged 60 years and above. This FD offers flexible payout options monthly, quarterly, semi-annually, or cumulatively at maturity to accommodate varied financial preferences. View the latest returns offered on Union Bank of India Fixed Deposits, and check the current Union Bank of India FD rates. Let’s explore the key benefits of Union Bank FDs, the latest rates, and how to open an FD account.

Information About
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
6.9%* (TAX-FREE)
Returns After Tax
6.9%*
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
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*For annual premium upto ₹5 Lacs

Key Benefits of Union Bank Senior Citizen FD

Union Bank of India offers a wide range of fixed deposit (FD) options to cater to various savings and cash flow needs. Some of the main perks are:

  1. Low Minimum Deposit Amount: 

    Union Bank allows fixed deposits to be opened with a minimum amount of ₹1,000, making the investment option accessible to all senior citizens.

  2. Premature Withdrawal: 

    Premature withdrawal gives you a liquidity option during an emergency. The only Union Bank FD that doesn't allow early closure is the Tax Saver FD. If you withdraw the deposit before it matures, you may be charged a 1% fee on the interest accrued. 

  3. Auto-Renewal Facility: 

    Union Bank of India offers an auto-renewal feature for Fixed Deposits, which is particularly convenient for senior and super senior citizens who may prefer minimal bank visits or are less comfortable with digital platforms. Upon maturity, the FD is renewed automatically at the prevailing interest rates. While opting for auto-renewal, depositors can also specify the renewal preferences based on their financial needs.

  4. Facility for Sweep-in and Sweep-out: 

    Union Bank offers a Savings Flexi Deposit Account that allows for automatic transfers of money in and out of the account. When the savings account balance exceeds ₹50,000, it is invested in fixed deposits in increments of ₹10,000 at a time. For liquidity, ₹5,000 chunks of money are swept back. 

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Union Bank of India FD Rates for Senior Citizens 

Below are the Union Bank of India FD interest rates for senior citizens across various tenure options:

Union Bank of India Senior Citizen FD Rates (Below ₹3 Crore)

Tenure Senior Citizen Rate (% p.a.)
7 – 14 Days 3.90
15 – 30 Days 3.90
31 – 45 Days 3.90
46 – 90 Days 4.90
91 – 120 Days 5.20
121 – 180 Days 5.40
181 Days to < 1 Year 6.65
1 Year 7.10
>1 Year to 398 Days 7.10
399 Days 7.10
400 Days 7.10
401 Days to 455 Days 7.00
456 Days 7.10
457 Days to 2 Years 7.00
>2 Years to 996 Days 7.00
997 Days 6.80
>998 Days to < 3 Years 7.00
3 Years 7.10
>3 Years to 5 Years 6.90
>5 Years to 10 Years 6.90

*Union Bank FD interest rates w.e.f. July  7th, 2025

Note: It is advisable to compare FD interest rates offered by leading Indian banks to identify the option that best aligns with your financial objectives and requirements.

FD interest rates India have fallen consistently over the last 12 years.
Invest in Plans that offer Guaranteed Returns for over 25 Years

How to Open a Union Bank Senior Citizen FD

Opening a Union Bank Senior Citizen Fixed Deposit is a straightforward process that can be completed either online or in person at your nearest branch, at your convenience.

  1. Online Method

    For Existing Customers

    • Log in to Union Bank Internet Banking or the Vyom App
    • Navigate to ‘Deposits’ → ‘Open Fixed Deposit’
    • Enter details like amount, tenure, interest payout mode, and nominee
    • Confirm and book your FD

    For New Customers

    • Visit Union Bank’s official site or the Vyom Digital Portal
    • Complete eKYC (Aadhaar OTP, PAN, or Video KYC)
    • Enter investment details and make the payment online
    • Receive FD confirmation instantly
  2. Offline Method

    • Visit the nearest Union Bank branch
    • Fill out the FD application form
    • Submit KYC documents and choose your preferred tenure
    • Pay via cheque, cash, or transfer
    • Receive your FD receipt on successful creation
Guaranteed return plan Guaranteed return plan

Taxation on Union Bank Senior Citizen FD Interest

Interest income from senior citizen fixed deposits (FDs) at Union Bank is taxable under the Income Tax Act. If the interest earned exceeds ₹1 lakh annually, TDS is deducted at a rate of 10% (20% without a PAN). Senior citizens can submit Form 15H to avoid TDS if their income is below the taxable limit. Additionally, under Section 80TTB, senior citizens can claim a deduction of up to ₹50,000 on interest income. For long-term savings, tax-saving FDs offer benefits under Section 80C (up to ₹1.5 lakh), but the interest earned is taxable.

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*Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Key Takeaways

Union Bank of India offers attractive fixed deposit rates of up to 7.35% per annum for senior citizens, with additional interest benefits for individuals aged 60 and 80 years and above. Retirees can choose from flexible tenure options and various interest payout modes to suit their financial goals. Opening an FD is simple and can be done through internet banking, the Vyom mobile app, or by visiting a branch. Senior citizens can also access funds through overdraft or loan facilities without breaking their fixed deposit. Submitting Form 15H and opting for tax-saving fixed deposits makes income planning efficient.

FAQs

  • Who can apply for the Union Bank of India Senior Citizen Fixed Deposit?

    People who are at least 60 years old are considered senior citizens, and those who are at least 80 years old are considered super senior citizens and may be eligible for an additional interest rate.
  • What is the minimum deposit amount for senior citizen FDs at Union Bank?

    The minimum deposit amount required to open a senior citizen fixed deposit at Union Bank of India is ₹1,000, with flexible tenures ranging from 7 days to 10 years.
  • Can I avail of a loan against my senior citizen FD?

    Yes, senior citizens can avail of a loan or overdraft facility against their fixed deposit, up to 90% of the deposit value. This option ensures liquidity without prematurely breaking the deposit at nominal interest rates.
  • Are there tax-saving fixed deposit (FD) options available for senior citizens?

    Yes, Union Bank of India offers a 5-year Tax Saving Fixed Deposit, which allows senior citizens to claim deductions of up to ₹1.5 lakh under Section 80C.

˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
* The Guaranteed Returns are dependent on the policy term and premium term availed, along with the other variable factors. The 6.9% rate of return is for an 18-year-old, healthy male for a policy term of 20 years and premium term of 10 years with a Rs . 20,000 monthly instalment premium. The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year, and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
** The Life Cover amount varies as per plan specifications. Please read the policy document for details.
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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