Union Bank of India RD Interest Rates

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 RD Interest Rates 2023 Table as of 23 May 2023

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% 
1 year  6.30% 
Less than one year to 398 days  6.30% 
399 days  7.00% 
400 days to 2 years   6.30% 
More than 2 years to less than 3 years  6.30% 
3 years   6.50% 
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.

Features of Union Bank RD Interest Rates

  • 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.

Types of Union Bank of India RD Schemes

  1. Cumulative Deposit Scheme

    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
    Nomination Facility Provided
    Premature closure Offered, however, eligible for penalty if any
    Auto-Renewal Not allowed
    Tax Deducted at Source (TDS)  Applicable
    Loan Facility Available
  2. Union Monthly Plus

    • This scheme is a variable deposit scheme providing a step-up and a step-down option with monthly installments. 
      • 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. 
    • 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).

How to Open a Recurring Deposit Account in Union Bank of India?

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. 

Eligibility Criteria for Union Bank RD Account

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) 

  • Illiterate people

  • Blind people

  • Corporations

  • Trusts

  • Hindu Undivided Families (HUF) 

  • Companies

  • Partnership firms

Documents Required for Opening RD Account in Union Bank

The necessary documents for opening a recurring deposits account are:

  1. Any government ID proof

    (Which includes an Aadhar card, voter ID, Driver's license, or Permanent Account Number) 

  2. Valid Address Documentation

    (Passport, Aadhar, Government Bills, Driving Licence, or Bank statement with cheque) 

Premature Withdrawal

As already mentioned, Union Bank permits account holders to withdraw their deposits anytime they want, which will be completely free of any penalty.

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