Union Bank of India FD Rates

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Highlights :

  • Highest FD Interest Rate : 6.45%
  • Senior Citizen Interest Rate : 6.95%
  • Loan Against FD : Up to 90%

Invest in FD and Save Now

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Updated: 20-02-2020 07:09:18 AM

Union Bank of India offers a range of fixed deposit schemes to regular individuals as well as senior citizens. UBI Fixed Deposits yield a higher rate of return than a normal savings account. The minimum deposit amount in Union Bank of India is Rs. 10,000 for a period of 7 days to 10 years. Let’s look at Union Bank of India FD rates in details.

Union Bank of India FD Rates 2020
Types of Union Bank of India Fixed Deposit Schemes
Union Bank of India Premature Withdrawal Facility
Union Bank of India Loan against FD
Union Bank of India FD Calculator
Documents Required to Open FD in Union Bank of India
How to apply for Union Bank of India FD Scheme
Frequently Asked Questions (FAQs)

Union Bank of India FD Rates 2020

TenureUnion Bank of India Fixed Deposit Interest Rates (in % p.a.)
Below Rs. 2 Crore
Regular CitizensSenior Citizens
7 days – 14 days5.00%5.50%
15 days – 30 days5.00%5.50%
31 days– 45 days5.00%5.50%
46 days – 90 days5.50%6.00%
91 days – 120 days6.00%6.50%
121 days – 180 days6.25%6.75%
181 days to <1 year6.25%6.75%
1 year6.60%7.10%
>1 year – 3 years6.40%6.90%
>3 years – 5 years6.45%6.95%
>5 years – 10 years6.45%6.95%

Note: Union Bank of India FD Interest rates are applicable with effect from October 1, 2019.

NRE (Non-Resident External) Fixed Deposit Interest Rates

TenureInterest Rate on Fixed Deposits of up to less than Rs. 2 crore
1 year6.75%
>1 year to 3 years6.40%
>3 years to 5 years6.45%
>5 years to 10 years6.45%

Note- Interest rates on NRO (Non-Resident Ordinary) term deposits are the same as those applicable on domestic term deposits w.e.f. 10th August 2019.

FCNR (Foreign Currency Non-Resident) Fixed Deposit Interest Rates

TenureUSD
<300,000		USD
>= 300,000		GBPEURJPYCADAUD
1 year < 2 years2.732.731.210.100.212.311.36
2 years < 3 years2.402.501.190.110.172.581.45
3 years < 4 years2.422.521.160.160.152.521.44
4 years < 5 years2.392.491.140.240.152.481.55
5 years only2.332.431.130.270.152.501.63

Note: All figures in % per annum. w.e.f. 1st October, 2019

 RFC (Resident Foreign Currency) Fixed Deposit Interest Rates

TenureUSD
<3,00,000		USD
>= 3,00,000		GBPEURO
6 months < 1 year2.732.731.210.10
1 year < 2 years2.732.731.210.10
2 years < 3 years2.402.501.190.11
3 years only2.422.521.160.16

Note: All figures in % per annum. w.e.f. 1st October, 2019

Types of Union Bank of India Fixed Deposit Schemes

1. Short Deposit Receipt

Features of Union Bank of India Short Deposit Receipt
  • The minimum deposit tenure is 7 days
  • Short deposits are held for a period of not more than 179 days
  • The minimum deposit amount is Rs. 5 lakh for a period of 7 – 14 days

2. Union Bank of India Fixed Deposit Receipt

Union Bank of India Fixed Deposit Receipt is a type of deposit scheme where a lower contribution is required to open the deposit account. Basic features of the scheme are mentioned below:

Features of Union Bank of India Short Deposit Receipt
  • The minimum & maximum deposit tenure is 7 days & 10 years respectively
  • The minimum deposit amount is Rs. 10,000
  • The interest is paid on a quarterly basis
  • No charges levied on pre-closure of the account
  • No interest would be paid if the account is closed before the first 7 days of opening the deposit
  • Nomination can be done under this scheme of deposit
  • Senior citizens are eligible for an additional of 0.50% rate of interest on their deposits if they maintain their deposits for a minimum tenure of 1 year and above

Eligibility Criteria –

  • Any resident individual can open the account himself or jointly with other resident individuals.
  • Other eligible parties who can open the account include illiterate persons, blind person, minors, purdanasheen ladies, clubs, associations, trusts, societies or institutions approved by the RBI to open a fixed deposit account.

3. Union Bank of India Monthly Income Scheme

Union Bank of India Monthly Income Scheme account can be opened by all resident individuals solely or jointly to get payments every month. Features and benefits of the scheme are mentioned below:

Features of Union Bank of India Monthly Income Scheme
  • The minimum & maximum deposit tenure is 6 months & 120 months respectively
  • The interest earned is paid monthly
  • This monthly interest is the discounted value of the actual interest
  • The interest earned monthly is credited to the depositor’s savings/current or cumulative account during the last week of every month
  • The depositor can nominate a person to receive the proceeds of the deposit post his death
  • Deposits made by senior citizens for a period equal to or above 1 year earn a 0.50% higher rate of interest

4. Union Bank of India Deposit Reinvestment Certificate

Union Bank of India Deposit Reinvestment Certificate is a type of fixed deposit account yielding the highest return due to its cumulative nature. Features of this scheme are mentioned below:

Features of Union Bank of India Deposit Reinvestment Certificate
  • The minimum & maximum deposit tenure is 6 months & 10 years respectively
  • The minimum amount of deposit is Rs. 500 in metro and urban branches
  • The minimum amount of deposit is Rs. 100 in rural and semi-urban centers
  • The facility of nomination is applicable on this deposit
  • Senior citizens earn 0.50% higher interest rate if the deposit is made for a period of 1 year and above

5. Union Bank of India Tax Saver Deposit

As is evident from the name of the Union Bank of India Tax Saver Deposit, this scheme is designed for the purpose of saving tax under Section 80C of Income Tax Act, 1961.

Features of the scheme are mentioned below:

Features of Union Bank of India Tax Saver Deposit
  • Only individuals and HUFs having a valid PAN card can opt for this deposit scheme
  • The deposit can be made on an individual basis by the individual himself or by the Karta of the HUF
  • The deposit can also be made on a joint basis by two adult individuals or one adult and one minor
  • For joint deposits, the proceeds of the deposit would be paid to the survivor of the two
  • For joint deposits, the tax benefit would accrue to the first holder of the deposit scheme
  • The minimum amount with which this deposit can be opted for is Rs. 5,000
  • The deposit can be for a minimum period of 5 years to be eligible for tax exemption
  • The deposit can be transferred from one branch to the other easily
  • Interest on the deposit might either be chosen to be received on maturity of the depositor at regular, quarterly or monthly intervals as decided by the depositor
  • Nomination facility is available

6. Union Bank of India Easy Tax Saver Deposit Scheme

Easy Tax Saver Deposit Scheme is similar to the Union Tax saver Deposit but with different features.

Features of Union Bank of India Easy Tax Saver Deposit Scheme
  • The deposit in this scheme would be exempted for tax under section 80C of Income Tax Act, 1961
  • Total deposits in a financial year should not exceed Rs. 1.5 lakh
  • Deposits can be made any number of times in this scheme
  • Deposits can be made in monthly installments (Standing Instruction/SIP), in lump-sum, or as and when you have surplus funds for investing

7. Motor Accident Claims Annuity (Term) Deposit Account (MACAD)

One time lump sum amount, as decided by the Court / Tribunal, deposited to receive the same in Equated Monthly Instalments (EMIs), comprising a part of the principal amount as well as interest.

Features of Motor Accident Claims Annuity (Term) Deposit Account (MACAD)
  • The minimum deposit amount is based on the minimum annuity Rs. 1,000 for the relevant period
  • There’s no maximum limit
  • The tenure ranges from 36 to 120 months
  • Loan on advance is not permitted
  • The nomination facility is allowed
  • No penalty is charged on the premature closure
  • Individuals including minors through guardian in single name are eligible

8. Non-Callable Term Deposit Scheme

The bank has introduced non-callable term deposit scheme which is available to the deposits of Rs. 1 crore and above (single deposits only). The scheme provides higher interest rate as compared to the interest rate on the regular deposits of Rs. 1 crore and above.

Features of Non-Callable Term Deposit Scheme
  • The amount of deposit is Rs. 1 crore and above
  • Under this scheme various types of FD schemes are:
  1. Deposit Reinvestment Certificate
  2. Fixed Deposit Receipt
  3. Short Term Deposit Receipt
  • The tenure of this scheme ranges from 61 days to 3 years
  • Auto-renewal of fixed deposit is not allowed
  • Premature closure of fixed deposit is not permitted
  • The availability of loan/overdraft is permitted as per the existing rules of the bank

9. Cumulative Deposit Scheme

The bank primarily focuses on the lower/lower middle/upper middle and encourages the small investors in easy monthly installments over a fixed tenure.

Features of Non-Callable Term Deposit Scheme
  • The monthly installments can be as low as Rs. 50 onwards
  • Customers can open an account for a period of 6 months to 120 months, in multiple of 1 month
  • Customers cannot alter the number of installments once selected
  • Interest is compounded every quarter (at the permissible rate)
  • Under this scheme various types of FD schemes are:
  1. Deposit Reinvestment Certificate
  2. Fixed Deposit Receipt
  3. Short Term Deposit Receipt
  • The tenure of this scheme ranges from 61 days to 3 years
  • Auto-renewal of fixed deposit is not allowed
  • Premature closure of fixed deposit is not permitted
  • The availability of loan/overdraft is permitted as per the existing rules of the bank

Union Bank of India Premature Withdrawal Facility

Premature withdrawal facility enables the depositor to withdraw the fixed deposit amount before the deposit tenure ends. Fixed Deposit is classified into two types:

  • With the premature withdrawal facility
  • Without premature withdrawal facility (For instance – Union Bank of India Tax Saver Deposit Scheme comes with a lock-in period of 5 years)

However, no interest will be paid on fixed deposits which remain with the Union Bank of India for less than 7 days.

Union Bank of India Loan against FD

Union Bank of India customers can avail the facility of loan against fixed deposit up to 90% of the value of their fixed deposit at attractive interest rates. Customers are not required to pay the penalty or lose out on the interest. Moreover, it helps to maintain the fixed deposits and avail cash for urgent financial needs.

Union Bank of India FD Calculator

Customers can check the maturity amount of the scheme via Union Bank of India FD Calculator at Paisabazaar. Also, Union Bank of India FD Interest Rates differs for different tenures and in such a case the investors can decide a preferred tenure of investment by entering different rates and calculating their total earning.

Moreover, using Union Bank of India FD calculator, account holders can check and compare Union Bank of India FD Rates with other banks as well.

Documents Required to Open FD in Union Bank of India

Documents Required to Open FD in Union Bank of India
  • Identity Proof
  • Address Proof
  • Photograph
  • Any other document that proves the identity and address of the applicant

How to apply for Union Bank of India FD Scheme

Customers can apply for Union Bank of India FD by the following modes:

The scheme is activated instantly and the depositor can avail additional facilities such as nomination, renewal, etc. through Net Banking or Mobile Banking.

Frequently Asked Questions (FAQs)

Q. What are the various types of fixed deposit schemes offered by Union Bank of India?

A. Union Bank of India offers six types of fixed deposit schemes to its customers as mentioned below:

  • Short Deposit Receipt
  • Union Bank of India Fixed Deposit Receipt
  • Union Bank of India Monthly Income Scheme
  • Union Bank of India Deposit Reinvestment Certificate
  • Union Bank of India Tax Saver Deposit
  • Union Bank of India Easy Tax Saver Deposit Scheme

Q. Is loan facility available against FD account at Union Bank of India?

A. Yes, 90% of loan facility is available against FD account at Union Bank of India.

Q. What is the tenure of Union Bank of India fixed deposit account?

A. The tenure of Union Bank of India fixed deposit account is 7 days to 10 years.

Q. What is the highest Union Bank of India FD interest rate?

A. The highest Union Bank of India FD interest rate is 6.60% (for regular individuals).

Q. Is nomination facility available on Fixed Deposit Receipts?

A. Yes, the nomination facility is available on Fixed Deposit Receipts.

Q. What is Union Bank of India FD interest rate for senior citizens?

A. Senior citizens are provided 0.50% additional interest rate to domestic term deposits of one year.

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