UCO Bank Recurring Deposit (RD) Interest Rates 2024

UCO Bank offers recurring deposits within its ‘UCO Sowbhagya RD Scheme’. The bank offers an attractive interest rate of 5.55% 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 recurring deposit interest rate can help you save a substantial amount of money in case of any emergency. 

UCO Bank RD Interest Rates 2024

Tenure General Interest rates (p.a.) Senior Citizen Interest Rates (p.a.)
1 year 4.90% 5.15%
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%

Note – The above-given RD Interest rates are for RDs Less than 2 crores

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

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 Ajay 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)

Calculate UCO Bank Recurring Deposit Rates Online

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

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 methods.

  • 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 you when the account is active.

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)

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.

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.

Types of UCO RDs

In the financial system, there are numerous deposit plans. They are classified into the following categories based on the time period during which they are valid:

  • Short Term RD

The length of your deposit under this sort of UCO Bank Recurring Deposit ranges from 6 months to 3 years. This type of RD is most suited for people who want to build the habit of saving.

  • Medium Term RD

When you don’t want to commit for a long time and aren’t sure how much value you’ll gain from RD, a medium-term repeating deposit is a decent option. It provides the appropriate balance of flexibility and commitment to invest in order for you to evaluate its benefits. The tenure extends from three to seven years.

  • Long Term RD

When you want to receive a return on your investment but do not have the lump sum cash to invest in a fixed deposit, a long-term RD is the ideal option. By investing in recurring deposits, you gain the option of making monthly installments that yield a similar rate of return to FDs. The tenure restrictions.

Benefits of the UCO Bank RD

  • People having a steady source of income, such as a salary, can open a recurring deposit account.
  • There is no need to make a large investment in order to save money. A recurring deposit account allows you to make tiny monthly payments.
  • There is no maximum amount that can be invested during the course of the period.
  • On this account, the bank provides a loan facility.
  • It is safeguarded against volatile market swings.
  • UCO Bank has market-competitive interest rates.
  • To make the installments on a regular basis, a standing instruction facility can be used.
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