Union Bank of India offers Recurring Deposit (RD) accounts with competitive interest rates. The interest rates for Union Bank of India RDs range from 5.25% to 7.00%, with tenures ranging from 6 months to 10 years. If you're looking for a safe and reliable way to save money regularly and earn interest on your deposits, Union Bank of India RDs is a good option for you.
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Union Bank of India RDs has interest rates ranging from 5.25% to 7.30% for 6 months to 10 years. Below are the RD interest rates for 2023:
|Recurring Deposit Period||Interest Rates (p.a.) for General citizens|
|181 days to less than a year||5.25%|
|Less than one year to 398 days||6.30%|
|400 days to 2 years||6.30%|
|More than 2 years to less than 3 years||6.30%|
|More than 3 year to 5 years||6.70%|
|More than 5 years to 10 years||6.70%|
Disclaimer: RD Interest rates are subject to change with time. Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.
Minimum monthly installments starting from Rs. 50.
The number of installments is unchangeable, although it may be converted into a Term Deposit. This must be done before maturity.
RD Interest rates are compounded quarterly.
TDS will be applied to the interest fraction of the cumulative deposit.
The amount will be handed out a month after the last installment upon maturity of the deposit.
Nominee facilities are also provided, abiding by the bank guidelines.
They also offer a penalty-free premature closure.
There is no automatic renewal system.
Note: It is recommended to use RD calculator to get the estimate of RD interest before making investment decision.
This scheme grants small investors to save via easy monthly installments over a fixed period.
|Tenure||6 months to 10 years|
|Minimum Deposit amount||INR 50|
|Maximum Deposit amount||No upper limit|
|Penalty for late installments||No penalty for any delay in installments or non-deposit of any month's installment|
|Premature closure||Offered, however, eligible for penalty if any|
|Tax Deducted at Source (TDS)||Applicable|
A person can open a Union Bank recurring deposit account offline or online.
In the offline method of starting an RD account, the person has to visit the branch of Union Bank of India nearest to them.
The other way is the online mode of opening an account, where a person has to go through the online net banking methods of Union Bank.
You need to follow the simple procedure listed below to open an RD account online:
Log into the net banking account with the help of login credentials.
Select the E-recurring Deposit option from the menu
Fill up the form provided, which mentions RD amount, tenure, etc., and a checkbox for senior citizens to avail of higher interest rates.
After submitting, you'll have your RD account ready and will automatically get credited on the due date by Union Bank.
One needs to be eligible to avail of these interests on investments in Union Bank of India. The criteria for eligibility of having an RD account are listed as follows:
Any person, which includes even minors and joint accounts
Non-Resident Indians (NRIs)
Hindu Undivided Families (HUF)
The necessary documents for opening a recurring deposits account are:
(Which includes an Aadhar card, voter ID, Driver's license, or Permanent Account Number)
(Passport, Aadhar, Government Bills, Driving Licence, or Bank statement with cheque)
As already mentioned, Union Bank permits account holders to withdraw their deposits anytime they want, which will be completely free of any penalty.
*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
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