Union Bank of India RD Interest Rates

What is Union Bank of India Recurring Deposit

Union Bank of India Recurring Deposit (RD) is a saving plan where you deposit a fixed amount every month for a selected period, ranging from 6 months to 10 years. It helps you build savings in a steady, well-planned manner.

Within the Union Monthly Plus RD variant, the starting deposit is ₹100 and can be made in multiples of ₹100, making it easy to begin. This plan allows deposits to increase or decrease, offering added convenience.

In addition, facilities such as nomination and loan against deposit are available for planned financial needs. If you are a kind of investor who prefers one-time investments over recurring deposits, consider Union Bank FD interest rates.

Union Bank of India Recurring Deposits Interest Rates

The table below shows the latest Union Bank of India Recurring Deposit interest rates for different tenures, applicable to deposits below ₹3 crore.

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

Types of Union Bank of India RD

Here are the types of Union Bank of India Recurring Deposit schemes, designed to meet varied saving needs and customer groups.

1. Standard Recurring Deposit (Regular RD)

   The regular RD plan is given to resident holders, NRE and NRO account holders, senior citizens, and minors. It enables fixed monthly contributions across a chosen term. The deposit duration ranges from 6 months to 60 months, making it suitable for short- to medium-term savings.

2. Union Monthly Plus (Flexible RD)

   This RD option is flexible and available for resident customers, together with a dedicated NRO version for NRIs. It allows a fixed core amount of ₹100, with the option to deposit up to 10 times the core amount or ₹1,00,000 in a month. The scheme offers a quarterly interest payout and easy account handling. There is no penalty for missed instalments, and premature closure is allowed without charges, providing added flexibility.

Key features of Union Bank of India RD

Here are the key features of Union Bank of India Recurring Deposit (RD), highlighting its structure, flexibility, and important rules for regular savings:

• Maximum Core Amount (Union Monthly Plus): Under the Union Monthly Plus scheme, the maximum core amount is ₹1,00,000, which supports planned and disciplined deposits.
• Multiple Deposits Facility (Union Monthly Plus): In the Union Monthly Plus scheme, you can deposit up to 10 times the core amount or ₹1,00,000, whichever is lower.
• Loan Facility: Union Bank of India loan against RD can be availed, allowing access to funds without a closing deposit before maturity.
• RD Premature Withdrawal: Union Bank of India RD premature withdrawal is allowed. In such cases, interest is paid for the completed duration at the applicable rate, and a penalty may be charged as per bank's rules and policy.
• Automatic Renewal: RD does not renew automatically. You must take action at maturity to continue the deposit or withdraw funds now immediately.

How to Open a Union Bank of India RD

You may open a Recurring Deposit account online through net banking or offline by visiting your nearest branch.

Online Method (via Net Banking)

Follow these steps to open your RD account via Union Bank of India internet banking:

• Log in to Net Banking Portal: Fill in your customer ID and password on the bank’s site.
• Go to ‘Recurring Deposit’ Section: You find this in deposits or savings menu.
• Enter RD Details Carefully: Share details regarding instalment amount, tenure and account number.
• Choose Nominee and Interest Category: Select nominee and the senior/general rate option now.
• Accept the Terms and Conditions: Tick the box after you read them.
• Send and Confirm Application: You will receive confirmation on your registered mobile.

Offline Method (Visit Branch)

Follow these steps at your nearest Union Bank of India branch:

• Visit Nearest Union Bank Branch: Carry your savings account passbook and identification.
• Ask for the RD Account Form: Ask for Recurring Deposit application form.
• Fill in Required Details Correctly: Provide tenure, instalment amount and nominee.
• Submit KYC Documents with Form: Attach ID and address proofs as needed.
• Make First Deposit Payment: Pay the initial instalment in cash or cheque.
• Receive Confirmation and Passbook: The bank sends a passbook/receipt with RD details.

Eligibility Criteria for Union Bank of India RD

Opening various RD accounts at Union Bank of India requires you to follow the set conditions, mainly for schemes such as Union Monthly Plus-NRO.

• NRI Account Holder: An RD account is allowed to be opened by an NRI, along with other NRIs, or for a minor through a guardian under NRO/NRE schemes bank.
• Passport Requirement: A valid passport is required to establish your identity and NRI status.
• Visa/OCI/PIO Documentation: You need to hold a valid Visa, OCI card, or PIO card to open NRE/NRO RD accounts easily.
• Guardian for Minors: For a minor account, the guardian must apply and fully satisfy every required document condition.

Key Takeaways

Union Bank of India RD helps savings grow in a steady manner. You may start with ₹100 and continue monthly deposits in multiples of ₹100. Tenure varies from 6 months to 10 years, with RD interest rates applied as per the selected period and added regularly. It offers a loan against RD facility, allows nomination, and helps the planned growth of funds, keeping savings simple and structured. You can use an RD calculator can be used to estimate maturity value and make a more informed decision.