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City Union Bank FD Interest Rates

3.00% - 5.25%
Interest rates
3 Months - 10 Years
Time Period
100 - 1,50,000
Min. - Max amount
QUARTERLY
Compounding

About City Union Bank FD

The City Union Bank is one of the country's oldest banks, having been founded in 1904. The CUB, headquartered in Thanjavur, Tamil Nadu, provides a variety of financial and banking services to its consumers. Among the numerous services provided by the bank, fixed deposit accounts are highly respected owing to their advantages of high liquidity, attractive interest rates, loan features, and tax benefits. A Standard fixed deposit has a minimum term of 7 days and a maximum tenure of 10 years. The minimum amount required to start a fixed deposit account with CUB is Rs.100.

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Started On1904
Head QuartersKumbakonam
CRISIL RatingNA
CEODr. N. Kamakodi
Listed on exchange asCity Union Bank Ltd
ICRA RatingNA

Features and Benefits of City Union Bank FD

  • There are options for automatic renewal.
  • A/C units can be opened individually or collectively (for resident individuals only)
  • There is an option to pre-close the FD.
  • Bulk deposits in excess of Rs. 2 crores are available.
  • Available in two metals: gold and silver, to meet the investor's different tastes (in terms of affordability)
  • There is a nomination facility provided.
  • Residents, as well as HUFs, can use it either individually or jointly.

Types of City Union Bank FD Schemes

City Union Bank Flexifix Deposit

  • This strategy combines the advantages of a fixed deposit (a greater rate of interest with no market risk) and the flexibility of withdrawals. 
  • Tenure ranges from 30 days to 7 years.
  • Minimum Deposit Amount: Rs. 10,000, with multiples of Rs. 5000 accepted.
  • Tenure ranges from 30 days to 5 years.
  • Interest Rates: Simple interest is due monthly, quarterly, semi-annually, and annually.
  • Senior Citizen Pricing: Senior citizens over the age of 60 receive preferential rates beginning with the first year.
  • Premature Withdrawal: Available in Rs. 5,000 increments with interest (on pro data basis)
  • Overdraft/Loan against FD Loans: are not available; however, overdrafts are possible.

City Union Bank Fixed Deposit

  • Minimum tenure: 7 days – 10 years The amount of the deposit is Rs. 100.
  • Interest Rates: Simple interest is due monthly/quarterly, annually/half-yearly.
  • Cumulative deposits are compounded quarterly.
  • Senior Citizen Rates: Additional FD rates for people aged 60 and up (on deposits for 1 year and above)
  • Premature Withdrawal: This option is available.
  • Loans against FDs are available.

City Union Bank Tax-Saver Deposit

  • Tax-Saver Term Deposit was created to assist investors in saving tax by claiming deductions under Section 80C of the Income Tax Act of 1961.
  • It is an excellent way to save money while increasing it many times over.
  • 5 years tenure (lock-in)
  • Amount of the Minimum Deposit
  • Silver Tax Saver Deposits: Rs. 100
  • Gold Tax Saving Deposits: Rs. 1,000
  • Treatment of Interest: Simple interest is paid on a monthly or quarterly basis on a silver deposit.
  • Gold Deposit: Interest accrues and is paid at maturity.
  • Premature Withdrawal: This option is not available.
  • Loan against FD: This option is not available.

Term wise City Union Bank FD Rates

Short-Term Deposits

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.

Medium-Term Deposits

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.

Long-Term Deposits

A Long-term FD goes from 5 years and more, and the interest rate is 5.25% for both general customers and senior citizens.

City Union vs Other Banks' FD Rates

NameTenureInterest rate
1
2
3
4
5

How to invest in City Union Bank FD?

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-

  • Visit the City Union Bank website.
  • Sign to your City Union Bank account.
  • Click on the topmost tab, and then click on ‘Personal’ and choose ‘Deposits’.
  • Choose the type of deposit. The page will get redirected to the scheme’s page.
  • On the FD scheme page, click on ‘Apply Now'.
  • Provide all the required information in the City Union Bank account opening form. Enter the payment, maturity, interest payout instructions.
  • After verifying the details, click on ‘Submit. On successful processing of the application, the investor will get notified.

2) Mobile App - City Union Bank Mobile Banking App

Follow the steps mentioned ahead to open an FD account via City Union Bank App-

  • Download the City Union Bank Mobile Banking App.
  • In the ‘E-Deposits’ section, choose the type of deposit account.
  • Provide all the required information in the City Union Bank account opening form. Enter the payment, maturity, interest payout instructions.
  • After verifying the details, click on ‘Submit. On successful processing of the application, the investor will get notified.

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.

Eligibility to Open an City Union Bank FD Account

Individuals or entities satisfying the following criteria can opt for a fixed deposit in City Union Bank–

  • Resident individuals
  • Hindu Undivided Families

Documents Required to Open City Union Bank FD

The following documents have to be furnished for opening a City Union Bank FD

  • Passport size photographs
  • Government ID proof (PAN Card, Aadhar Card, etc.)
  • Address proof (Driving License, Aadhar Card, and Utility bills)
  • City Union Bank Fixed Deposit application form

FAQs

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:

  • Aadhaar Card, PAN Card, and other forms of photo ID are acceptable.
  • Proof of residency – Aadhaar card, driving license, utility bills, etc.
  • Form of Application (duly filled-in and signed)
  • Passport-sized photo(s) of the applicant and nominee, if applicable

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.

Calculate City Union Bank FD Interest
Investment Amount
₹25,000.00
Time Period
9 Months
1 Year
2 Years
3 Years
Maturity Amount
City Union Bank
@5% p.a
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