
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.
Save upto ₹46,800 in tax under Sec 80C
Inbuilt Life Cover
Tax Free Returns Unlike FD+
Fully Tax-Free* (unlike FD), Life Cover Included
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.
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:
Union Bank allows fixed deposits to be opened with a minimum amount of ₹1,000, making the investment option accessible to all senior citizens.
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.
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.
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.
Below are the Union Bank of India FD interest rates for senior citizens across various tenure options:
Period | Senior Citizen Interest Rate (% p.a.) |
7 to 14 Days | 3.90 |
15 to 30 Days | 3.90 |
31 to 45 Days | 3.90 |
46 to 90 Days | 4.90 |
91 to 120 Days | 5.20 |
121 to 180 Days | 5.40 |
181 Days to less than 1 Year | 6.65 |
1 Year | 7.10 |
More than 1 Year to 398 Days | 7.10 |
399 Days | 7.10 |
400 Days | 7.10 |
401 Days to 455 Days | 7.00 |
456 Days | 7.35 |
457 Days to 2 Years | 7.00 |
More than 2 Years to 996 Days | 7.00 |
997 Days | 6.80 |
More than 998 Days to less than 3 Years | 7.00 |
3 Years | 7.10 |
More than 3 Years to 5 Years | 6.90 |
More than 5 Years to 10 Years | 6.90 |
*Union Bank FD interest rates w.e.f. June 12, 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.
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.
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.
*Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023Union 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.
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*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable
tax slabs post 31st march 2023
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. 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