Union Bank RD interest rates are indeed one of the best competitive rates that the market has to offer. Apart from monthly savings, the Union bank RD scheme provides you with great interest rates on your surplus savings. The tenure range from 6 months to 120 months (10 years). Union Bank offers different types of RD schemes to align with different requirements of customers. Let’s delve deeper into the nitty-gritty of Union Bank RD rates.

Union Bank RD Interest Rates 

Tenure Regular Interest rates (p.a.) Senior Citizen Interest Rate (p.a.)
180 days 6.50% 7.00%
181 day to less than 10 months 6.50% 7.25%
10 months to 14 months 6.75% 7.20%
More than 14 months to 3 years 6.60% 7.20%
More than 3 years to 5 years 6.70% 7.35%
More than 5 years to 10 years 6.70% 7.35%

All the interest rates mentioned above are for investment less than Rs. 2 crore

Types of Union bank RD Schemes

Various types of RD schemes are provided by the Union Bank of India to suit the needs of various customers. There are enticing features associated with them and are known as Cumulative Deposit and Union Monthly Plus.

Union Bank Cumulative Deposit

This scheme is perfect for investors with low-risk appetite and is looking to invest small amounts in monthly installments with a fixed tenure. This type of RD is especially designed to cater to people starting from lower to upper-middle class including salaried individuals.

Moreover, the following people can also opt to open an RD and enjoy the benefits of Union Bank of India RD interest rates 2020:

  • An individual who is a resident of India and holds a savings account with Union Bank
  • Two or more individuals with a joint account
  • Impaired or illiterate individuals
  • Minors under the guardianship of their parents
  • Any association, club or society, etc

People falling under the above-mentioned category can choose to open the Union Cumulative Deposit scheme as permitted by the Reserve Bank of India. Also, all the institutions, agencies and trusts permitted by RBI are eligible to open the account under this scheme.

Features of Cumulative Deposit

  • The minimum deposit amount starts from as low as Rs. 50 per month as installments
  • Tenures range from 6 months to 120 months (10 years). One can choose from any tenure between the same
  • One cannot change the number of installments; however, it can be converted into a term deposit before the maturity date
  • Interest rates are compounded quarterly
  • TDS is applicable on the interest accrued of the cumulative deposit
  • The final amount is disbursed a month after the last installment of the deposit

Union Bank of India Union Monthly Plus

Under this scheme, one gets options like ‘Step-up’ and ‘step-down’. With the help of these options, you can increase or decrease the monthly installments. This scheme is available to individuals, corporates, institutions, proprietorship, partnerships, etc.

Features of Union Monthly Plus

  • One needs to choose the core amount to open the RD account which ranges from a minimum of Rs. 100 and a maximum of Rs. 1 lakh.
  • The tenure of the deposit ranges from 6 months to 60 months (multiples of 1 month)
  • Interest rates on Monthly Plus are like the term deposit offered by Union Bank and are computed on a daily product basis
  • It provides the account holder with great options of Step-up or Step-down that is explained in the next section

Step-up option

The ‘Step-up’ option, as the name suggests, lets you increase the monthly installment amount. One can increase it up to 10 times the core amount. For instance, if the chosen core amount is Rs. 500, then you can increase or step it up to Rs. 5000.

Step-down option

If you have stepped up the installment amount, you might want to decrease it; this is where the step-down option comes in to use.

Union Bank of India – Term Wise Recurring Deposit Interest Rates

Union bank Short term Recurring Deposit Interest Rates: The Short term recurring deposits from Union bank have their tenures starting from 6 months to 1 year. The interest rate for RDs with less than 2 crores deposits ranges from 5.00% p.a. to 6.75% p.a. For deposits more than 2 crores, checking with the nearest bank’s branch is advisable.

Union Bank Medium and Long-Term Recurring Deposit Rates: The medium and long term Union Bank of India Recurring deposits range for more than 14 months to 10 years. The rate of interest offered by the bank for this type of tenures is somewhere between 6.60% p.a. to 6.70% p.a. for deposits less than 2 crores. For medium and long term RDs of more than 2 crores, you need to contact the nearest Union Bank Branch.

Union Bank Senior Citizen RD Interest Rates

Senior citizens can avail of an additional interest rate of 0.50% over the regular interest rates for deposits less than Rs. 1 crore. Contact the bank’s nearest branch for deposits amounting to more than 1 crore.