City Union Bank Recurring Deposit Interest Rates

City Union Bank Ltd is one of the leading scheduled commercial banks in the private sector, with a significant presence in South India's urban, semi-urban, and rural areas. The bank is divided into four business segments: Treasury, Retail Banking, Corporate Banking, and Other Banking Operations.

Savings accounts, current accounts, fixed deposits, cash certificates, VIP deposits, Flexifix deposits, CUB Smart deposits, and tax saver gold deposit accounts are among their offerings. Services provided by the bank include recurring deposits, and they are famous among their clientele which is discussed in this post.

City Union Bank Recurring Deposit

The process to open a Recurring Deposit (RD) account at City Union Bank is simple. The duration of the RD account spans from 7 days to 120 months. The lowest deposit amount required to open an RD account is Rs.100. Senior citizens receive an additional rate of interest based on the Account's tenure.

City Union Bank offers interest rates ranging from 3.00% to 5.75%. You can also get a loan against the deposit in your Account.

Features and Advantages of the RD from the City Union Bank

  • One can invest small sums of money on a monthly basis rather than in a lump sum, as with a fixed deposit.
  • When starting a recurring deposit account, the depositor can specify the tenure duration.
  • People with a consistent salary find RD more convenient because a large amount of money is not restricted to investment purposes, making it easier to satisfy shifting demands.
  • A recurring deposit account pays a higher interest rate than a savings bank account.
  • Recurring deposits can be converted into fixed deposit accounts.
  • A recurring deposit account includes a nomination function.
  • Recurring deposits are regarded as one of the safest and least dangerous types of investment.
  • Market fluctuations have no effect on recurring deposits.
  • The interest on recurring deposits is only paid at the conclusion of the maturity term.

City Union Bank RD interest rates 2024

The table shows the City Union Bank RD interest rates:

Period 

CUB RD interest rates for general customers

City Union Bank recurring deposit for senior citizens

7 days to 14 days

3.00%

3.00%

15 days to 45 days

3.25%

3.25%

46 days to 90 days

3.50%

3.50%

91 days to 180 days

3.75%

3.75%

181 days to 270 days

4.00%

4.00%

271 days to 364 days

5.00%

5.00%

365 days to 550 days

5.50%

6.00%

551 days to 3 years

5.75%

6.25%

Above 3 years - up to 5 years

5.50%

6.00%

Above 5 years - up to 10 years

5.25%

5.25%

Documents Required for the RD from City Union Bank

The bank accepts the following documents as identification:

  • Passport
  • The PAN card
  • Voter Identification Card
  • Driver's license
  • Identity card/employer/other bank confirmation
  • ID cards are issued by authorized educational institutions
  • Postal authorities issue identification
  • A letter from a recognized public official or servant
  • NREGA provided a job card duly signed by a State Government authority
  • The Unique Identification Authority of India needs to issue a letter with your name, address, and Aadhar number on it

Types of RD Accounts from City Union Bank

The kinds of RDs from City Union Bank are based on the tenures, and they are:

  • Short Term: Short-term recurring deposits include RD accounts opened for a period of 12 months. The bank offers 5.50% p.a. interest in such RDs to regular citizens.
  • Medium Term: Medium-term recurrent deposits are recurring deposits that are opened for a duration of one year to three years. On medium-term recurring deposits, the interest rate ranges from 5.50% p.a. to 5.75% p.a.
  • Long Term: City Union Bank pays 5.25% per annum on long-term recurring deposits. Long-term recurring deposits have a tenure ranging from 5 years one day to 10 years.

FAQs

Q1. I'd like to close my RD account, but it's only been a month. What are the fees?

If you close your Account within a month, no interest will be paid, and only your principal will be repaid.

Q2. How do I open an RD account?

The simplest and quickest approach to applying for an RD account is to apply online to the website. You could also go to your nearest bank branch and physically submit the documents to open the Account.

Q3. How to avoid taxes over my RD?

If the RD account holder does not have taxable income, he or she can submit Form 15G/ Form 15H to the bank/post office where the RD account is formed to avoid TDS. Form 15G is used for people under 60, whereas Form 15H is comparable to Form 15G but can only be used for people beyond 60 (senior citizens).

Q4. What is the lowest amount needed to open a City Union Bank RD account?

You can open a City Union Bank RD account with Rs. 100/- and its multiples.

Q5. Will my interest income be taxed?

Yes, TDS is levied on the interest earned on a recurring deposit account.

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