Union Bank of India Senior Citizen FD Rates 2025

What is the Union Bank of India Fixed Deposit?

Union Bank of India's Senior Citizen Fixed Deposit is a savings product designed for individuals aged 60 and above. It offers a higher interest rate (typically an additional 0.50%) compared to a regular FD. The scheme provides flexible interest payout options, including monthly, quarterly, semi-annually, or at maturity, to suit various financial needs. You can visit the official website to view the latest Union Bank of India FD rates and choose the plan that best fits your financial goals.

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 and maintain high FD rates. Some of the main perks are:

• 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.
• 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.
• 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.
• 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 FD 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. August 20, 2025

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 FD Rates Senior Citizens

Union Bank FD rates senior citizens are considered taxable income. To manage this, the bank will deduct TDS (Tax Deducted at Source) at a rate of 10% if your annual interest income exceeds ₹50,000. However, if your total income falls below the taxable limit, you can prevent this deduction by submitting Form 15H to the bank. Additionally, you can claim a deduction of up to ₹50,000 on your interest income under Section 80TTB of the Income Tax Act, which is a special provision for senior citizens to reduce their tax liability.

Key Takeaways

Union Bank FD rates for senior citizens are up to 7.10% per annum, with additional interest benefits for individuals aged 60 to 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 online and offline. The Union Bank of India Senior Citizen FD comes up with multiple benefits that include premature withdrawal, an auto-renewal facility, and a deposit with a minimum amount. Submitting Form 15H and opting for tax-saving fixed deposits makes income planning efficient.