Union Bank of India FD Interest Rates

Fixed deposits are considered to be a safer investment option compared to share markets. You can deposit your savings for a fixed duration and earn interest on the deposited amount at a fixed rate until the completion of the FD period. To earn great profits, you can safely park your savings in the Union Bank's FD schemes. You can check Union Bank of India FD Interest Rates in India.

Features of Union Bank of India Fixed Deposit

Investment Amount  Minimum - Rs. 1000 Maximum- No Maximum Limit
Tenure  Minimum - 7 daysMaximum- 10 Years
Interest Rate  Minimum - 3.50 %Maximum- 5.45%

Union Bank of India Fixed Deposit Rates 2020

Union Bank of India FD Rates in India
Tenure General Public FD Rates Senior Citizen FD Rates
7 days to 14 days 3.50% 4.00%
15 days to 30 days 3.50% 4.00%
31 days to 45 days 3.75% 4.25%
46 days to 90 days 4.00% 4.50%
91 days to 120 days 4.50% 5.00%
121 days to 180 days 4.75% 5.25%
181 days to 364 days 5.00% 5.50%
444 days 5.40% 5.90%
445 days to 554 days 5.40% 5.90%
555 days 5.40% 5.90%
556 days to 3 years 5.40% 5.90%
1 year 5.40% 5.90%
1 year 1 day to 443 days 5.40% 5.90%
3 years 1 day to 5 years 5.45% 5.95%
5 years 1 day to 10 years 5.45% 5.95%

Comparison of FD Rates by Top 10 Financial Institutes

Name Interest Rates Tenure  
Axis Bank 5.75% 5 years to 10 years View Details
Bank of Baroda 5.30% 5 years 1 day to 10 years View Details
Bank of India 5.40% 5 years to 10 years View Details
Canara Bank 5.45% 3 years to 10 years View Details
Central Bank of India 5.35% 5 years to 10 years View Details
HDFC Bank 5.50% 5 years 1 day to 10 years View Details
ICICI Bank 5.50% 5 years 1 day to 10 years View Details
IDBI Bank 5.70% 7 years 1 day to 10 years View Details
State Bank Of India 5.40% 5 years to 10 years View Details
Yes Bank 7.00% 1 year to 10 years View Details

Union Bank Fixed Deposit Rates - Special Features

Check out the benefits of investing money in Union Bank FDs:

  • Union Bank of India allows you to nominate your spouse or any of the family members to receive the maturity amount
  • Union Bank FD rates are competitive.
  • You can open your fixed deposit account starting from 10,000 rupees in Urban and Metro branches. Whereas Rs 5000 minimum deposit is required for senior citizens and urban areas
  • Loans are available up to a maximum of 90 percent of the deposited amount
  • Easy pre-closure procedure. And no interest is applied if the FD is closed within seven days of the opening
  • Union Bank offers fast and quick liquidity options
  • No interest is applicable if you close your account within 7 days of opening it
  • Union Bank FD rates for Senior citizens are 0.5% higher than the regular investors for deposits above 1 year

Types of Union Bank FD Schemes

If you want to open a fixed deposit account for a tenure ranging between 3 and10 years then you can earn returns at the rate of 5.45 percent. The bank offers a special interest rate on FDs for senior citizens, which is 5% higher than the regular deposits for tenure above 1 year. At present, the Union Bank FD rates on senior citizen fixed deposit account range from 4.0 percent to 5.95 percent.

Union Bank of India FD rates are based on the RBI monetary policies, Bank's liquidity position, and credit demands along with the economic growth rate.

You May also like to Read: Rate of Interest on FD in SBI

Union Bank of India Fixed Deposit Receipt

In this scheme, you can deposit money for a minimum of 6 months and a maximum of up to 120 months. The interest payable is subjected to the Tax Deducted at Source (TDS).

The minimum amount to be deposited in this scheme is Rs.1000, whereas there is no limit on the maximum amount.

The interest is calculated every quarter. The interest applicable varies based on the tenure and if there are any changes in the Union Bank FD rates that are applicable.

The Union Bank of India FD rates for senior citizens are additional 0.50 percent for deposits above 1 year.

The bank provides the facility of auto-renewal under this scheme and the deposits will be renewed for the same tenure at the applicable Union Bank FD rates.

The facility of premature closure is also allowed and the interest is paid for the running period at applicable Union Bank of India FD rates. The penalty is levied, if any.

Union Bank of India Monthly Income Scheme

Monthly Income Scheme is available for all the Indian residents. You can open both single and joint accounts. A nomination facility is also available in this scheme.

You can invest in this scheme to earn interest every month on the fixed deposits ranging from 1 to 10 years. The interest will either be credited or paid to your current/savings/cumulative account at the end of every month.  The scheme offers an additional interest of 0.5 percent to Senior Citizens.

Union Bank of India Deposit Reinvestment Certificate

The Deposit Reinvestment Certificate is another type of FD account that gives you cumulative returns on your deposits. Have a look at some of the features of this scheme -

  • The minimum and maximum deposit tenure is 6 months and 12 months
  • The minimum amount of deposit for metro and urban branches is Rs. 500
  • The minimum amount of deposit for semi-urban and rural areas is Rs. 100
  • A nomination facility is available
  • Additional 0.50% Union Bank FD rates for senior citizens, if the tenure of the deposit is more than 1 year and the amount is lesser than Rs 1 Crore. For amounts above Rs 1 Crore, directly contact the nearest branch of the Union Bank of India

Union Bank of India Tax Saver Deposit

All the individuals and HUFs (Hindu undivided family) are eligible to buy this scheme. It is mandatory to have a PAN card to invest in this scheme.  

The policy is not open to corporates, firms, trust, companies, societies, institutions, and clubs.

Types of Deposits- This term deposit is available in single holder and joint holder options. An individual can issue a single holder scheme either for himself or as the Karta of the HUF.

Two adults can buy the joint holder type of deposits. An adult and a minor can also invest in this scheme and the maturity amount will be paid to either of the survivors or the deposit holders. 

However, tax benefits* under section 80 c will be available only to the first holder in a joint holder scheme.

The minimum amount that is required to issue a term deposit scheme is 5000 rupees and a maximum of 1 lakh 50 thousand rupees on yearly basis.  

The minimum tenure for term deposits is 5 years and a maximum of 10 years.

Union Bank of India Capital Gains Exemption Deposit Scheme

This scheme was started by the Union Bank of India on 22nd June 1988. The assessee can utilize the deposited amount within the specified period to acquire new assets as per the respective Section of the Income Tax Act, 1961.

The taxpayers can avail of tax benefits* from the Capital Gains if the net consideration amount or the amount of capital gains is deposited in the bank on or before the due date of filing the ITR.

Capital Gains Exemption Deposit Scheme Accounts can be opened only at urban/ semi-urban / metropolitan Union Bank branches.

The bank offers two types of deposit accounts under this scheme- one is Savings Bank Deposits and the other is Term Deposits.

Union Bank of India Easy Tax Saver Deposit Scheme

It is a tax saver Fixed Deposit Scheme, wherein you have the flexibility to deposit the money either in a lump sum, or through monthly installments (SIP), or by utilizing your surplus fund's overtime in an FY.

Easy Tax Saver Deposit Scheme offers guaranteed returns on your investments in a risk-free manner during a financial year.

The idea is to help you systematically save taxes. You can invest small amounts during an FY and you will earn tax benefits* u/s 80 C on the amount deposited. You can invest up to Rs 1, 50,000 altogether, or infractions during a fiscal year.

Union Bank of India FD Premature Withdrawal

Union Bank of India allows Premature account closure or withdrawal (some penalties might be applicable. The penalty on premature FD closure or withdrawal varies from policy tenure to policy amount and is subjected to change from time to time.

Union Bank of India FD Maturity Calculator

With the help of the Union Bank of India FD calculator, you can easily know the maturity amount that you will get after completion of the FD tenure. To determine the maturity amount, you just need to provide the amount of FD, its tenure, the applicable Union Bank FD rates, and the compounding frequency of the FD interest rate and with the help of a fixed deposit interest calculator, you can easily get to know the maturity amount.

Formula to Calculate the Maturity Amount

With the use of an online fixed deposit maturity amount calculator, you can use the below-mentioned formula for calculating the maturity amount and interest earned on your FD:

A = P (1+r/n) ^n*t

In this formula:

P = Deposit amount

A = Amount received upon maturity

r = Annual rate of interest

t = Investment tenure

n = Number of times the interest is compounded

Tax Benefits* on Union Bank of India Fixed Deposit

In the case of fixed deposits, the tax imposed depends on your tax bracket regardless of the FD tenure. If the amount of the interest earned is more than 10,000 rupees, the bank will levy tax deduction at the rate of 10 percent. Upon deduction, you will get a TDS certificate from the bank.

TDS of 30.90% applies to the interest earned on NRO deposits. And for interests exceeding Rs.10 Lakhs, TDS is applicable @33.99%. Less tax is levied on NRI accounts from countries sharing Double Taxation Avoidance Agreement (DTAA) with India.

*Tax benefit is subject to changes in tax laws

FD Account Opening Process at Union Bank of India

For opening an FD account with Union Bank of India, you can visit the official website of the bank and login or signup. After that select the option of Fixed Deposit from the menu and then choose the FD Type wherein you want to invest. After doing this, you need to fill in the amount that you want to deposit in your FD account. If you are above 60, then select the 'Senior Citizen' option. You then have to select the deposit tenure and frequency of interest pay-out. Click the 'Submit' button for opening a fixed deposit account with Union Bank of India. Do not forget to read the terms and conditions.

If you wish to open an FD account offline, then visit the nearest branch of the Bank and get your FD account opened there.

Union Bank of India Fixed Deposit - FAQs

Written By: PolicyBazaar - Updated: 30 October 2020
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