Union Bank of India Senior Citizen FD Rates 2025

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.

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. 

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)

*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.

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

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.

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.