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Investing your surplus money in fixed deposits is considered as one of the best ways of securing the money for certain tenure. The competitive Union Bank FD interest rates allow depositors to get substantial returns. Customers are allowed to deposit at least the minimum deposit amount at the time of opening the FD account.

Union Bank of India FD Rates 2020

PeriodInterest Rate
7 days – 14 days4.00% – 4.50%
15 days – 30 days4.00% – 4.50%
31 days – 45 days4.25% – 4.75%
46 days – 90 days4.50% – 5.00%
91 days – 120 days5.00% – 5.50%
121 days – 180 days5.25% – 5.75%
181 days – 364 days5.50% – 6.00%
3 years 1 day – 5 years5.80% – 6.30%
5 years 1 day – 10 years5.80% – 6.30%
1 year5.75% – 6.25%
1 year 1 day – 443 days5.75% – 6.25%
444 days5.85% – 6.35%
445 days – 554 days5.75% – 6.25%
555 days5.90% – 6.40%
556 days – 3 years5.75% – 6.25%

Union Bank Fixed Deposit Rates – Special Features

  • The tenure for Union Bank FDs ranges from 7 days to 10 years
  • Loan facility of up to 90% of the FD amount is available
  • Union Bank offers a wide range of fixed deposit schemes to choose from
  • Competitive interest rates are offered for all FD schemes
  • Senior citizens can avail 0.50% extra interest rates over the general interest rates
  • Easy and fast liquidity options are available

Types of Union Bank FD Schemes 

  1. Short Deposit Receipt
  • The minimum tenure of this deposit is 7 days
  • These deposits can be held for a period of 179 days or less
  • The minimum deposit amount required is Rs. 5 lakh for a period of 7-14 days
  1. Union Bank of India Fixed Deposit Receipt
  • Under this scheme, a lower deposit amount will suffice to open the account. The features pertaining to these deposits are:
  • The tenure ranges from 7 days to 10 years
  • The minimum deposit amount for this scheme is Rs. 10,000
  • The Union Bank of India FD interest is paid on a quarterly basis
  • Nomination facility is available
  • Senior citizens can avail of an additional 0.50% interest rate over the regular rates
  1. Union Bank of India Monthly Income Scheme
  • As the name implies, under this scheme, all resident individuals can open an account solely or jointly to get payments every month
  • The interest earned is paid on a monthly basis
  • The monthly interest earned is the discounted value of the actual interest
  • The interest is credited to the depositor’s savings/current or cumulative account during the last week of every month
  • Nomination facility is available
  • Senior citizens can earn a 0.50% extra interest for deposits made equal to more than a tenure of 1 year
  1. Union Bank of India Deposit Reinvestment Certificate
  • This scheme yields the highest returns due to its cumulative nature. It is an ideal scheme in which the interest is compounded on a quarterly basis and paid along with the principal amount. Some of the features are:
  • The tenure ranges from 6 months to 10 years respectively
  • The minimum deposit amount is Rs. 500 in Urban/Metro centers and Rs. 100 in Rural/Semi-urban centers
  • Nomination facility is available on this deposit
  1. Union Bank of India Tax Saver Deposit
  • As the name implies, this scheme helps depositors to save tax under Section 80C of Income Tax Act, 1961. Some of the features are:
  • Only individuals wand HUFs with a valid PAN card can open this account
  • An individual can make the deposit himself and in case of HUFs, the Karta can do the same
  • Two individuals or one adult and one minor can also open an account under this scheme on a joint basis
  • The minimum deposit amount to open this account is Rs. 5000
  • The deposit must be made for a minimum of 5 years to be eligible for tax exemption
  • The deposit can be transferred from one branch to the other easily
  • Interest payout on the deposit can be chosen to be received at regular, quarterly or monthly intervals as decided by the depositor
  • Nomination facility is available
  1. Union Bank of India Easy Tax Saver Deposit Scheme
  • This is another tax saver scheme by Union Bank which is quite similar to Union Tax Saver Deposit but with different features. Some of the features of this scheme are:
  • The deposit made under this scheme would be exempted from tax under section 80C of Income Tax Act, 1961
  • The total deposit in a financial year should not be more than Rs. 1.5 lakh
  • Deposits can be made multiple times under this scheme
  • These deposits can be made in either monthly installment (standing instruction/sip), in lump sums or whenever you have surplus funds for investing
  1. Motor Accident Claims Annuity (Term) Deposit Account (MACAD)
  • One time lump sum amount, as decided by the Court / Tribunal, deposited to receive the same in Equated Monthly Installments (EMIs), comprising a part of the principal amount as well as interest. Some of the features are:
  • The minimum deposit amount based on the minimum monthly annuity Rs. 1000 for the relevant period. However, there is no maximum limit.
  • The tenure ranges from 36 to 120 months
  • Loan facility is not provided
  • Nomination facility is available
  • The interest payment is subject to TDS
  • The prevailing rate of interest as per the tenure will be provided

Union Bank of India FD Premature Withdrawal

Premature withdrawal is allowed by Union bank, however, the bank does levy some penalty as per their policy. If the term deposits are below 1 crore, no penalty is shall be charged on premature closure, Deposits exceeding Rs. 1 crore, 1% penalty shall be charged.

Union Bank of India FD Rates Amidst Coronavirus

Due to the repo rate cut by RBI by 75 bps during coronavirus lockdown, Union Bank of India may reduce the FD interest rates in the coming days. This can affect the interest of fixed depositors adversely.

Union Bank of India FD Rates – Frequently Asked Questions

What is the highest interest rate provided by Union Bank on FD?

The maximum interest provide Union Bank of India on FD is 6.20%

What is the tenure of Union Bank of India FD?

The Union Bank of India FD tenure ranges from 7 days to 10 years.

Is nomination facility provided by the bank?

Yes, nomination facility is available

How to apply for Union Bank of FD?

Customers can apply for Union Bank FD through:

  • Net Banking
  • Mobile Banking or
  • By visiting the nearest branch
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