| Started On | 1904 |
| Head Quarters | Kumbakonam |
| CRISIL Rating | NA |
| CEO | Dr. N. Kamakodi |
| Listed on exchange as | City Union Bank Ltd |
| ICRA Rating | NA |
| Tenure | Regular customers | Senior citizens |
|---|
The Period that begins from 7 days to 1 year or less than a year are known as short-term fixed deposits, and their interest rates start from 3.00% to 5.00% depending on the number of days of the deposit for general customers and senior citizens.
A Medium-term fixed deposit, that is, from 1 year to 5 years, withhold interest rates is 5.50% to 6.00% for general customers and for senior citizens according to the period of lock-in.
A Long-term FD goes from 5 years and more, and the interest rate is 5.25% for both general customers and senior citizens.
| Name | Tenure | Interest rate |
|---|
A City Union Bank FD account can be opened through different modes like Mobile App, Internet Banking, and offline.
1) Internet Banking
Follow the below-mentioned steps for opening a City Union Bank FD account via internet banking-
2) Mobile App - City Union Bank Mobile Banking App
Follow the steps mentioned ahead to open an FD account via City Union Bank App-
3) Opening City Union Bank FD Offline
For opening a City Union Bank FD account via offline mode, one has to visit the nearest City Union Bank branch. Fill out the City Union Bank application form and present all the necessary documents with the deposit amount. On successful processing of the application, an FD receipt will be provided by the City Union Bank.
Individuals or entities satisfying the following criteria can opt for a fixed deposit in City Union Bank–
The following documents have to be furnished for opening a City Union Bank FD–
An investment in City Union Bank Tax Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other City Union Bank FD entitles to tax savings under Section 80C of the Income Tax Act.
Also, note that the interest income from the City Union Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from City Union Bank FD exceeds Rs. 40,000 p.a.
For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
City Union Bank provides loans against their Fixed Deposits. The rate of interest for the loan depends on the terms and conditions of the City Union Bank.
City Union Bank Fixed Deposits can be withdrawn prematurely, excluding the tax-saving Fixed Deposits. The charges are levied as per the terms and conditions of the City Union Bank.
Is there a penalty for early withdrawal from the bank?
Yes. Premature withdrawals from City Union Bank are subject to a 1% penalty.
How long can a person keep an FCNR account with CUB?
FCNR fixed deposit accounts with City Union Bank can be kept for up to 5 years.
How long do City Union Bank NRE term deposits last?
Fixed deposits in NREs can be established for terms ranging from one to ten years.
Who qualifies as a senior citizen?
An individual who has reached the age of 60 is referred to as a senior citizen by the bank.
What is the City Union Bank FD rate for older citizens?
Senior citizens can take advantage of varied fixed deposit rates at City Union Bank. For deposits due in one year, the bank gives a 0.50 percent additional interest rate, while for FD maturing between one year and ten years, the bank offers a 0.25 percent extra interest rate.
Can I avail myself of a loan against City Union Bank FD?
Investors can borrow against their regular fixed deposit at a predetermined interest rate set by the bank. The Flexifix term deposit plan expands the option to use an overdraft facility. It should be noted that such a service is not accessible while using the CUB Tax-Saver Scheme.
What are the documents needed to start the scheme?
To create a fixed deposit account with City Union Bank, it is recommended that the following papers be submitted for a smooth application process:
Is it allowed to withdraw the money before maturity?
In times of necessity, City Union Bank investors have the option of withdrawing cash from their FD accounts before they mature. This feature is available in both the conventional fixed deposit plan and the Flexifix scheme. Please keep in mind that the tax-saver program does not have any such option.