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 their flexibility and low deposit amount apparently. Saving a small part of your monthly earnings in the form of a 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 RD Interest Rates 2021- RDs Less than 2 crore
- UCO Bank RD Rates Special Features
- UCO Bank RD Premature Withdrawal
- How to Calculate UCO Bank RD Maturity Amount?
- Eligibility Criteria for UCO Bank Recurring Deposit
- Documents Required to Open an RD Account with UCO Bank
- Tax Charged on UCO Bank Recurring Deposit
- How to Open an RD account with UCO Bank?
- FAQs on UCO Bank RD Interest Rates
UCO Bank RD Interest Rates 2021- RDs Less than 2 crore
|Tenure||General Interest rates (p.a.)||Senior Citizen Interest Rates (p.a.)|
|1 year 1 day – 2 years||5.00%||5.50%|
|2 years 1 day – 3 years||5.00%||5.50%|
|3 years 1 day – 5 years||5.00%||5.50%|
|5 years 1 day – 10 years||5.00%||5.50%|
UCO Bank RD Rates Special Features
- The minimum deposit amount for UCO Bank RD is Rs. 100 per month
- The tenure ranges from a minimum of 1 year to a maximum of 5 years
- The bank accepts maximum deposits up to Rs. 1 lakh
- UCO Bank offers a loan facility to its customers. One can take up to 90% of the principal as the 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 RD Premature Withdrawal
An individual can also decide to withdraw their investments prematurely; however, in that case, he/she has to bear a penalty charge. UCO Bank charges a penalty of 2% less than the lower of the following – applicable interest rate on the date of redemption or the interest rate according to the period for which the deposit was held by the bank.
How to Calculate UCO Bank RD Maturity Amount?
Like many other financial institutions and NBFCs, UCO Bank provides investors with information on the corpus amount they will be earning depending on the monthly investment and lock-in period of the deposit.
It helps the investors make an informed decision regarding their investment and the period for which they should keep their principal invested.
A = P*(1+R/N)^(Nt)
- Where A is the maturity amount
- P is the amount deposited each month,
- N is the Compounding Frequency (no. of quarters)
- R is the rate of interest and
- t is the Tenure.
Suppose Ramesh has invested Rs. 10000 in a UCO Bank RD for 5 years and the applicable interest rate is 6.5%. Then the maturity amount will be – Rs. 7,09,902 (Investment amount – Rs. 6,00,000 and Interest – Rs. 1,09,902)
Eligibility Criteria for UCO Bank Recurring Deposit
The following are the entities that can open a recurring deposit account with UCO Bank –
- A residential Indian.
- Two or more individuals can open an account jointly, each holding similar rights over the account.
- Minors above the age of 10 years, represented by their legal guardians.
- Institutions that are registered and joint companies.
In the case of jointly held accounts, each holder is the beneficiary for the other. It means, in case of the demise of one individual, the other becomes the legal nominee.
Documents Required to Open an RD Account with UCO Bank
- Account opening Application form prescribed by the bank
- Pan Card copies
- Applicant’s 2 passport size photos
- Identity proof (any)
- Address Proof (any)
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.
How to Open an RD account with UCO Bank?
The account opening process of a Recurring Deposit account is easy and can be done using offline as well as online method.
- For the online method, individuals will have to open a Savings account with the bank in order to use net banking to apply for an RD account. 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.
- For the offline method, one needs to visit the nearest UCO Bank branch and submit the duly filled account opening forms with other documents. Upon submitting the filled-in form and KYC documents, the bank will verify the same and inform when the account is active.
FAQs on UCO Bank RD Interest Rates
Ques. What is the minimum deposit amount required to open a UCO Bank RD account?
Ans. You just need to deposit Rs. 100 to open the account and multiples of Rs.100 thereafter.
Ques. What is the tenure of UCO Bank Recurring Deposits?
Ans. An RD account in the UCO bank can be opened for a minimum of 12 months to a maximum tenure of 60 months.
Ques. Does the Bank Levies some Penalty on Premature Withdrawal
Ans. 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 cancelled.
Ques. What is the interest rate charged by the bank for a loan against RD?
Ans. The bank charges 2% above the deposit rates for loans against RD.
Ques. Does the Bank provide nomination facility?
Ans. 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.