UCO Bank came into existence in Kolkata in 1943. Also known as the United Commercial Bank. It is one of the major government-owned commercial banking institutions in the country today. As of March 2017, UCO Bank is known to operate more than 4000 service units within the country, while maintaining an overseas presence across both Hong Kong and Singapore.
UCO Bank fixed deposit schemes offer an alternative way to customers for wealth growth. Such plans provide higher returns than a conventional savings account, while also guaranteeing safety for the investment.
In this article
Benefits of Choosing UCO Bank FD Plan
Here are some advantages that have led to the popularity of UCO Bank fixed deposit amongst the masses.
- Quarterly and monthly interest collection facilities, allowing for regular withdrawal of earned interest on your investment.
- Investors can nominate a family member or heir, who will receive the returns from investment in case of investor death before maturity.
- Attractive interest rates for both regular and senior citizen investors.
- Loan against FD facility is available.
Eligibility Criteria for UCO Bank FD
Individuals who fulfil the following factors are eligible to invest in UCO Bank FD schemes.
- Must be a citizen of India
- Member of Hindu Undivided Family
- Companies, trusts and societies can also apply for a UCO bank FD plan.
Documents Required for UCO Bank FD
Investors need to furnish the following documents to start their UCO Bank investments.
- KYC documents that act as identity and address proof. Aadhaar card, PAN card, driving license, electricity bill and telephone bill are just some of the accepted KYC documents.
- Bank statement, along with a cheque acts as the income proof.
- Passport-size photographs.
- UCO Bank fixed deposit application form.
UCO Bank FD Rates
Regular investors can expect attractive interest rates on their investments. For tenures ranging between 7 days and less than one year, the rate of interest is between 4.50% and 6.00% per annum. For senior citizens, these short-term investments result in returns ranging from 4.75% to 6.25%.
Long-term UCO Bank fixed deposit schemes, on the other hand, lead to returns of 6.25% for regular investors and 6.75% for senior citizens. These plans have a maturity period ranging between 5 years and 10 years.
|Tenure||Non-senior citizen and NRO FD (%)||Senior Citizen FD (%)|
Different Types of UCO Bank FD Plans
UCO Bank offers a range of FD products, each suitable for a different section of society. Listed below are some of the FD options on offer from the bank.
- UCO Bank Fixed Deposit Account – A scheme offering flexible tenure ranging from 7 days to 10 years, investors opting for this plan can start with a deposit of just Rs. 1,000. Interest is either compounded monthly at discounted rates or quarterly.
- Kuber Yojna – Another flexible fixed deposit scheme, the Kuber Yojna FD’s minimum maturity period is 6 months, while the maximum tenure is 10 years. Here, too, investors can start with investments as small as Rs. 1,000.
- UCO Monthly Income Scheme – Individuals looking to take avail this plan must invest at least Rs. 50,000. The upper limit for this scheme is set at Rs. 1 Crore. The tenure is fixed at 5 years. Interest pay-out is available on the first day of each month.
- UCO Tax Saver Deposit Scheme – This UCO Bank FD scheme comes with a 5-year lock-in period. Investments can range between Rs. 1,000 and Rs. 1.5 Lakh. This is an excellent option for people seeking tax rebates on their investment.
- Flexible Fixed Deposit Scheme – This is a reinvestment scheme, where investors cannot claim the returns from the FD. Instead, the sum is invested directly into shares and stocks for further growth.
Premature Withdrawal Terms and Conditions
Premature withdrawal is a foreclosure of an FD before its tenure ends. A UCO Bank FD offers premature withdrawal in most cases. UCO Tax Saver Deposit is not applicable for such early fund removal, due to its 5-year mandatory lock-in.
However, any premature withdrawal is liable to draw penalty charges under UCO Bank terms and conditions. The penalty charges are 2.00% lower than the rate at which the bank held it on the deposit date.
Special Forms to Fill
Interest earned through UCO Bank fixed deposit schemes is subject to TDS deductions. TDS is deducted if the total interest income of an investor is Rs. 40,000 (Rs. 50,000 for senior citizens) or above. You can submit Form 15G (15H in case of senior citizens) if your interest income does not cross the mentioned threshold.
Loan against UCO Bank FD
UCO Bank allows investors to avail loan against their fixed deposits. However, this facility is unavailable for the tax-saving FD scheme. For all other plans, the bank offers a loan quantum up to 90% of the FD value.
These loans are attractive due to the limited rate of interest charged. For UCO Bank FD investors, the interest rate on these loans ranges from 5.5% to 7.3%.
- What is the maximum FD rate available for UCO Bank fixed deposit?
Individuals below 60 years can earn a maximum interest of up to 6.25% per annum.
- Are senior citizens eligible for higher interest rates on their investment?
Yes. UCO Bank provides additional interest to investors older than 60 years. For these people, the maximum rate of interest from FDs is 6.75%.
- What is the shortest UCO Bank FD tenure?
UCO Bank fixed deposit tenures start from just 7 days.
- What is the current interest rate bracket for UCO Bank FDs?
Investors today can hope to earn interest at rates ranging between 4.50% and 6.30% per annum. Senior citizens, on the other hand, are eligible for interest rates between 4.75% and 6.75% on their FDs.
- What is the minimum investment quantum for UCO Monthly Scheme?
Investors interested in the UCO Monthly Scheme need to invest at least Rs. 50,000 in the plan.
- Can investors add funds to their on-going FD investments?
No. Additional funds cannot be invested in an existing UCO Bank FD scheme. To do the same, investors need to open an additional FD account for the additional money.
- Can investors cancel their FD investments midway?
Yes. Midway cancellations of FD investments are known as premature withdrawals.
- Can customers change the tenure for existing FD investments?
No. Altering the term for a fixed deposit scheme is not possible.
- Can UCO FD investor avail loan against their investment?
Yes. Loan against FD is available on all UCO Bank FD products, except on the tax-saving option.
- What is the holding period for the tax saver FD from UCO Bank?
This scheme comes with a lock-in period of 5 years.