Union Bank of India is a public sector bank in India with more than 120 million customers. The bank has 9500 branches (more than 9300 branches in India), and it is one of the largest public sector banks in India. It merged with Andhra Bank and Corporation Bank in 2020, and since then, it has been one of India's most significant public sector banks.Read more
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Recurring Deposit, abbreviated as RD, is an investment method for people with consistent incomes. A fixed amount of money is to be deposited every month into the RD account of an individual for a definite tenure. A person can earn an RD rate of interest on a scale of about 2.50% to 8.50%.
|S.No||Tenure||RD Rates For Senior Citizens||RD Rates For General Citizens|
|1||181 days to 364 days||4.40%||4.40%|
|3||One Year to Two years||5.1%||5.1%|
|4||Two Years to Three years||5.3%||5.8%|
|5||Three Years to Five years||5.40%||5.4%|
|6||Five years to Ten years||5.50%||5.50%|
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.
Union Bank of India RDs has interest rates ranging from 4.4% to 5.5% for six months to 10 years. For senior citizens, too, the rates lie in the same range.
Minimum monthly installments starting from Rs. 50.
The account holder can choose the tenure between 6 months and 120 months (multiples of 1 month).
The number of installments is unchangeable, although it may be converted into a Term Deposit. This must be done before maturity.
Interest rates at acceptable levels 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.
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|
This scheme is a variable deposit scheme providing a step-up and a step-down option with monthly installments.
The depositors must set forth a core amount while opening their account and deposit it as the initial installment.
This allows the account holder even to deposit multiple times per month. And the maximum permissible amount deposited per month is ten times the initial installment or INR 1,00,000 (the lower one between the two).
Step Up Option: It allows increasing, in other words, 'Step Up' the monthly installment up to ten times the core amount. For example, if the initial installment was INR 1,000, the step-up option allows depositing up to INR 10,000 in a particular month at a maximum.
Step Down Option: Even after stepping up for any given month, the depositor may reduce or precisely 'Step Down' in the successive month. Remember that the deposited amount does not recede from the core amount.
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:
Any government ID proof
(Which includes an Aadhar card, voter ID, Driver's license, or Permanent Account Number)
Valid Address Documentation
(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.