United Bank of India has been merged with Punjab National Bank w.e.f. April 1, 2020. Please click here to find the FD rates offered by Punjab National Bank.
For conventional investors, fixed deposits have always been a preferred choice. United Bank of India offers fixed deposit schemes for domestic as well as NRI customers. These schemes are backed by competitive United Bank of India FD rates. Here we have provided current FD interest rates by the bank as well as other important aspects like eligibility, documents required, and so on.
United Bank of India FD Interest Rates 2022
FD rates for domestic deposits below Rs. 2 crore
|Tenure||Rate of Interest (% p.a.)|
|Regular Citizens||Senior Citizens|
|7 to 14 days||3.00%||3.50%|
|15 to 29 days||3.00%||3.50%|
|30 to 45 days||3.00%||3.50%|
|46 to 90 days||3.50%||3.90%|
|91 to 120 days||3.75%||4.25%|
|121 to 180 days||4.30%||4.80%|
|181 days to less than 1 year||4.40%||4.90%|
|Above 1 year and up to 2 years||5.10%||5.60%|
|Above 2 years and up to 3 years||5.30%||5.80%|
|Above 3 years and up to 5 years||5.40%||5.90%|
|Above 5 years and up to 10 years||5.50%||6.00%|
Note: The Interest Rate applicable on Term Deposits of less than Rs. 2 Crores, for the maturity of more than 1 year, to all senior citizens will be 0.50% over and above the rate payable. (Interest Rates are effective from 1st September 2021)
FD Rates for Bulk Deposits of Rs. 2 crores and above
|Tenure||Interest Rates (% p.a.)|
|7 days to 14 days||3.00%|
|15 days to 29 days||3.00%|
|30 days to 45 days||3.00%|
|46 days to 90 days||3.00%|
|91 days to 179 days||3.00%|
|180 days to 270 days||3.10%|
|271 days to less than 1 year||3.10%|
|Above 1 year and up to 2 years||3.50%|
|Above 2 years and up to 3 years||3.50%|
|Above 3 years and up to 5 years||3.50%|
|Above 5 years and up to 10 years||3.50%|
Note: The above mentioned United Bank Bank of India FD rates apply to bulk deposits worth Rs. 2 crores to Rs. 10 crores. Also, no preferential rates are provided to senior citizens when making bulk deposits. (The above-mentioned interest rates effective from 1st September 2021.)
Tax Saving Fixed Deposit
|Tenure||UBI Tax Saver Fixed Deposit Rates|
|For General Public||For Senior Citizens||For Staff Members||For Retired Staff Members|
|Above 5 years to 10 years||5.25%||5.75%||6.25%||6.25%|
The above-mentioned interest rates are effective from 1st Sep 2021.
United Bank of India NRI FD Rates, 2022
For Non-Resident Indians (NRIs), the bank provides the following types of fixed deposits:
- NRE (Non-Resident External) Account
- NRO (Non-Resident Ordinary) Account
- FCNR (Foreign Currency Non-Resident) Account
- RFC (Resident Foreign Currency) Account
FD interest rates for NRE/NRO deposit accounts are aligned with rates for domestic deposits.
NRE Fixed Deposit Rates
|Tenure||NRE/NRO FD Rates (% p.a.)|
|Above 1 year and up to 2 years||5.20%|
|Above 2 years and up to 3 years||5.20%|
|Above 3 years and up to 5 years||5.30%|
|Above 5 years and up to 10 years||5.30%|
Note: No senior citizen/staff additional benefits forwarded to applicants of NRE/NRO deposits. The minimum tenure for the NRE deposit is 1 year. (Interest Rates are effective from 1st Sep 2021)
What is an NRE deposit?
NRE or Non-Residential External deposit account is designed to benefit non-resident Indians with their fixed deposit investments. This is a rupee account which means that the deposits are made in foreign currency and then they are converted into rupees based on the prevailing foreign exchange rates. Forex risk is involved. Interest maintained in Indian National Rupee (INR), earned is not taxable in India.
What is an NRO deposit?
NRO or Non-Residential Ordinary deposit account for NRI customers to manage their income earned in India, i.e. in Indian Rupee. There is no forex risk involved as there is no currency conversion. Interest earned is taxable in India.
United Bank of India Fixed Deposit Rates: FCNR and RFC Deposits
|Currency/Tenure||1 year to < 2 years||2 years to < 3 years||3 years to < 4 years||4 years to < 5 years||5 years only|
Note: These interest rates are applicable only on fresh deposits and on renewal of deposits maturing on or after 1st July 2021.
*For Deposits less than 1 million only.
What is the FCNR (B) Deposit?
FCNR (B) is the abbreviation of Foreign Currency Non-Residential (Bank) Deposit. United Bank of India provides this option to its NRI customers to help them manage their foreign savings in the same currency, without having to get it converted. This leads to zero foreign exchange risk. Interest earned is not taxable in India. Interest earned + deposit amount are repatriable, i.e. transferable.
What is RFC Deposit?
RFC is the Resident Foreign Currency Deposit. It is specially designed to help returning Indians (i.e. ex-NRIs) manage their foreign savings. These residents are termed as Residents but Not Ordinary Residents or R-NOR. This account is maintained in foreign currency. Interest earned is NOT taxable in India for Resident but Not Ordinary Resident or R-NOR.
Read more about Types of United Bank of India NRI Account
The following are the benefits one can accrue on investing in fixed deposit schemes extended by the United Bank of India:
- 0.50% extra rate of interest is awarded to senior citizens and 1% to the bank’s staff
- Facility to withdraw funds from the deposit, fully, is provided with a penalty of 1%
- The reverse sweep-in facility offered in United Anand Deposit Scheme where funds from FD are transferred to the linked savings account to honour withdrawals
- Overdraft facility provided for up to 90% of the deposit amount
United Bank of India FD Calculator
Before putting one’s savings in a fixed deposit account, it is advised to use the FD calculator, which is available free of cost on Paisabazaar.com. This online tool can be used at any time and from any device, be it a mobile phone or a desktop.
To use this tool, the following inputs are required:
- Deposit amount
- United Bank of India FD rate(s)
- Tenure or the period of fixed deposit
Once these inputs are entered, simply click on “Calculate” and the fixed deposit calculator shall put forth the calculated interest amount as well as the maturity amount, separately.
Please note that the figures calculated are estimates and the actual amount may vary slightly.
Read more about United Bank of India FD Schemes
Tax Deducted at Source or TDS is a way of collecting income tax by the government. Apart from salary, other components like a fixed deposit also fall in its periphery. United Bank of India, like other banks, also charges TDS on the interest earned on a fixed deposit. The following are the noteworthy points regarding tax on FD:
- Interest earned above Rs. 40,000 qualifies for TDS @ 10%
- For senior citizens, this limit is raised by Rs. 10,000, i.e. at Rs. 50,000
- On non-submission of PAN or form 60/61, TDS is charged @ 20%
- For NRI customers, TDS is levied @ 30% (NRO and RFC deposits)
Note: This list is indicative, thus more papers may be asked by the bank later.
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Frequently Asked Questions (FAQs)
Q. What is the highest United Bank of India FD rate offered at present?
A. As per the prevailing FD interest rates, the bank is offering maximum returns @ 5.50% for deposits maturing in above 5 years and up to 10 years.
Q. What is the minimum and maximum period for a United Bank of India FD?
A. United Bank of India fixed deposit tenure ranges from 7 days to 5 years and above.
Q. Does the United Bank of India provide tax-saving fixed deposits?
A. Yes. Depositors can avail of tax-saving FD for the tenure of 5 years and above (with a lock-in period of 5 years).
Q. Do I have to provide the passport of the nominee if he/she is an NRI?
A. To prove their residential status, passport, as well as copy of the visa, may be asked by the bank.