City Union Bank RD Interest Rates

What is City Union Bank Recurring Deposit?

City Union Bank recurring deposit is a savings option that allows a fixed amount to be deposited every month for a chosen tenure. The minimum deposit for individuals is ₹100 per month, with further contributions allowed in multiples of ₹100 thereafter. For MSMEs, the minimum deposit is ₹1,000, with further instalments in multiples of ₹1,000, while for corporates, the minimum deposit is ₹5,000, with subsequent instalments in multiples of ₹5,000.

With a recurring deposit, each deposit will earn interest from the date of the deposit till its maturity. This means that earlier payments will earn more interest compared to subsequent payments. In case of any confusion, the RD calculator can be used anytime to estimate accurate returns.

If all installments are paid on time, interest is compounded periodically and paid at maturity according to the bank's rule. In case of missed payment, interest is calculated only on the available balance. The applicable RD interest rates depend on the chosen tenure and are fixed at the time of opening the account.

City Union Bank RD Interest Rates

The following table provides the updated City Union Bank recurring deposit interest rates applicable across various tenures.

*City Union Bank RD Interest Rates w.e.f. March 11, 2026

Types of City Union Bank Recurring Deposit

City Union Bank has three types of recurring deposit schemes that are suitable for both long-term and short-term savings. 

1.  Regular Recurring Deposit 

   The first one is a regular recurring deposit that allows customers to save a fixed amount every month for a specific period. The minimum tenure is 12 months, extending up to 10 years. Minimum monthly deposit varies depending on the type of account. 

2.  NRE (Non-Resident External) Recurring Deposit 

   CUB NRE Recurring Deposit is a scheme that allows Non-Resident Indians (NRIs) to save in rupees what they earn outside of India. This type of account can be opened jointly with non resident or resident on a former or survivor basis. The interest earned from this deposit is not subject to Tax Deducted at Source (TDS) and is fully repatriable.

3.  NRO (Non-Resident Ordinary) Recurring Deposit 

   CUB NRO Recurring Deposit (RD) is a scheme that allows Non-Resident Indians (NRIs) to save a fixed amount every month from the income they earn in India. The interest earned is subject to Indian income tax, while the principal and interest can be remitted outside India up to USD 1 million per financial year.

Key Features of City Union Bank Recurring Deposit

A City Union Bank Recurring Deposit is meant for saving regularly at monthly basis and offers fixed returns. Key features include:

• Standing Instruction Facility: CUB has a standing instruction facility that applies to RD. It allows you to automatically pay the monthly payment from the linked account, helping you pay on time.
• Loan Against RD: The City Union Bank loan against RD gives customers the option of borrowing without closing the deposit, subject to the terms and conditions of the bank.
• Additional Interest for Senior Citizens: Senior citizens and super senior citizens enjoy a higher CUB RD interest rate ranging from 0.20–0.25% above general rates, depending on the tenure.
• Premature Withdrawal Facility: City Union Bank RD premature withdrawal facility will enable residents and NRO customers to access their recurring deposit before it reaches maturity, with a penalty according to the bank’s policy. But for NRE customers, interest is not payable if the deposit is preclosed before 1 year. But if it is preclosed after 1 year, but before maturity, it can be done with a penalty.
• TDS on Interest: For resident and NRO accounts,10% of the interest earned on RD is taxable if the total exceeds ₹50,000 (₹1,00,000 for senior citizens) in one financial year, according to the Income Tax Act. If your total does not reach the given limit, submit Form 15G/15H to avoid TDS. Meanwhile, there is no TDS for NRE accounts.

How to Open a City Union Bank Recurring Deposit

A CUB RD can be opened online or at any CUB bank branch. The process is simple and needs only basic account details.

Online Method

You can access an RD at any convenient time using the internet or mobile banking, using the following steps:

• Log In: Log in to CUB internet or mobile banking.
• Select RD Option: Click next to the deposits and select recurring deposit.
• Enter Details: Fill in the instalment amount and tenure.
• Link Account: Choose your City Union Bank savings account or current account to be auto-debited.
• Review & Submit: Verify details and confirm the request.
• Confirmation: Receive RD account creation confirmation.

Offline Method

You can easily open an RD account offline by following these steps:

• Branch Visits: Visit the closest branch of CUB.
• Fill Form: Fill in the RD application form.
• Submit Documents: Provide required KYC documents.
• Choose Details: Select the instalment amount and tenure.
• Deposit Initial Instalment: Pay the first monthly instalment.
• Set Instructions: Provide payment or standing instructions.
• Account Activation: The bank opens the RD account and issues confirmation details.

Eligibility Criteria for City Union Bank RD

Many types of customers open an RD account with CUB. These are the criteria given by the bank to open an RD account:

• Individual Account: Any adult individual can open an RD account in their own name. Even if you are not residing in India, you can open either NRE or NRO accounts.
• Joint Account: Any two or more individuals can open a joint RD account. Every account holder has equal responsibility for paying the installments and also shares the same benefit. 
• Minors: A minor can open a CUB RD account through their parents or legal guardian. Full and valid KYC documents of the guardian are required for account activation.
• Hindu Undivided Family (HUF): HUFs can open RD accounts in the name of the family. This allows joint savings for family needs and financial planning.
• Business Entities and Organisations: Sole proprietorships, clubs, associations, firms, joint stock companies, and other RBI-approved entities may open RDs to handle surplus funds effectively.

Key Takeaways

City Union Bank offers a recurring deposit facility suitable for individuals, corporates, small business and even minors. City Union Bank RD interest rates vary from 6.25% to 7.00% for the general public, and 6.50% to 7.25% for senior citizens. These CUB recurring deposit rates depend on the period of saving, with a minimum period of 12 months and a maximum of 10 years. Account holders can take out loans against deposit, and can also withdraw prematurely, following the bank’s penalty policy.