UCO Bank offers recurring deposit within its ‘UCO Sowbhagya RD Scheme’. The bank offers an attractive interest rate of 6.60% on the deposited amount. Moreover, senior citizens can avail a 0.50% additional interest rate over regular interest rates. One of the most preferred investment methods preferred by people is Recurring deposits owing to its flexibility and low deposit amount apparently. Saving a small part of your monthly earnings in the form of deposit and seeing it grow with the attractive UCO RD interest rates can help you save a substantial amount of money in case of any emergency. Let’s delve deeper and check what else UCO Bank has in store for its customers.
In this article
UCO Bank Recurring Deposit Interest Rates – RDs Less than 2 crore
|Period||General Interest rates (p.a.)||Senior Citizen Interest Rates (p.a.)|
|More than 1 year to 2 years||6.50%||7.00%|
|More than 2 years to 3 years||6.50%||7.00%|
|More than 3 years to 5 years||6.50%||7.00%|
RD Interest Rate in UCO Bank – For Deposits More than 2 Crore
|Period||Interest Rate p.a.|
|More than 1 year to 2 years||4.75%|
|More than 2 years to 3 years||4.75%|
|More than 3 years to 5 years||4.75%|
UCO Bank RD Rates Special Features
- The minimum deposit amount for UCO Bank RD is Rs. 100 per month
- The tenure ranges from minimum 1 year to a maximum of 5 years
- The bank accepts maximum deposits up to Rs. 1 lakh
- UCO Bank offers loan facility to its customers. One can take up to 90% of the principal as loan amount. The bank charges a 2% interest rate above the deposit rates
- Any individual, minors (under guardian supervision), firms, trusts, societies, educational institutions, etc
- TDS deductions are as per the existing income tax rules set at the time of opening the account
UCO Bank Recurring Deposit Calculator
You can calculate the maturity amount on your RD account with the help of the UCO Bank Recurring Deposit Calculator available over a plethora of websites.
The RD maturity amount depends on a number of parameters, viz.
- Deposit amount
- Interest Rate
- Tenure of the RD
- Compounding frequency
- TDS Rate and applicability
Tax Charged on UCO Bank Recurring Deposit
If the interest earned on all your RDs across all branches of UCO bank in a year exceeds Rs. 10,000, the bank deducts 10.3% TDS. Moreover, if you don’t have your IT PAN updated in the UCO bank records, the bank must deduct twice the TDS which sums up as 20.6%. So, it is highly recommended to update your PAN on your RD.
Apart from TDS, you would need to add the interest income on the UCO bank RDs and other RDs as well to your taxable income for that year. The income tax is payable based on your tax bracket. You need to be spontaneous and estimate your interest income and all the other incomes and based on the same, pay advance tax on advance tax payment dates (15th Sep, 15th Dec, 15th March, and 31st March).
UCO bank issues Form 16A to its customers providing details of the deducted tax on RD interest tax deposited by it with government treasury.
FAQs on UCO Bank RD Interest Rates
How I can open an RD account in UCO Bank?
- By visiting any UCO bank branch
- Through Netbanking
If you are already a UCO bank customer, all you need to do is log in to your account by using your net banking username and password and open an e-RD right away. If you don’t have an existing account, you need to get one first. Once your account is active, you can log in to net banking and open an e-RD.
An investment in the UCO bank RD scheme can fetch you good interest rates. However, to enjoy even better returns, you can try investing in other investment vehicles like mutual funds, FDs, stocks, and others.
What is the minimum deposit amount required to open a UCO Bank RD account?
You just need to deposit Rs. 100 to open the account and multiples of Rs.100 thereafter.
What is the tenure of UCO Bank Recurring Deposits?
An RD account in the UCO bank can be opened for a minimum of 12 months to a maximum tenure of 60 months.
Does the Bank Levies some Penalty on Premature Withdrawal
No, the amount can only be withdrawn upon maturity. In case you withdraw the amount before maturity, the bank deducts a 1%-2% penalty from the interest accumulated on the RD amount for the period the amount remained with the bank.
The minimum lock-in period is 3 months and if the account holder wants to withdraw the amount before that, he/she earns zero interest and gets only the principal amount refunded. Apart from nil interest, any incentives offered are also canceled.
What is the interest rate charged by the bank for a loan against RD?
The bank charges 2% above the deposit rates for loans against RD.
Does the Bank provide nomination facility?
Nomination facility is provided by the bank on UCO Bank recurring deposits. Whether the account is opened in a single or joint name, only one nominee per account is allowed. One should ensure that the nomination is as per the RBI rules. The nominee can be changed through declaration in an appropriate form.