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Fixed Deposit

The Union Bank of India offers a range of fixed deposit schemes for individuals looking to save their savings in a deposit account which would yield a higher rate of return than a savings account. The types of accounts offered by the Union Bank of India in the fixed deposit category are outlined below in details:


Short Deposit Receipt-
 

General public and other individuals can open this deposit scheme to save their money and earn good returns.
 

  • Deposit tenure ranging from 7 days to 10 years
  • Deposits which are held for a period of up to 179 days are called short deposits.
  • Minimum amount which is required to open this scheme of deposit is Rs.5 lakhs for a minimum tenure of 7 days to 14 days

Union Bank of India FD Rates 2017

FD Tenure

Interest Rates (in %)

 Interest Rates (in %)

Regular Citizens Senior Citizens
7 day – 14 day 5.00 5.00
15 day – 30 day 5.00 5.00
31 day – 45 day 5.00 5.00
46 day – 90 day 5.50 5.50
91 day- 120 day 6.25 6.25
121 day to - 179 days 6.25 6.25
180 days 6.50 6.50
181 day to <10 Month 6.50 6.50
10 Month to 14 Month** 6.75 7.25
>14 Month to 3 Year 6.50 7.00
>3 year - 5 Year 6.50 7.00
>5 year - 10 Year 6.50 7.00

**Senior citizens would get an additional interest rate of 0.50% if the investment tenure exceeds 1 year.

Note: The rates are applicable with effect from 21 Aug 2017 on investments below Rs 1 Crore. Interest rates are liable to change without prior information.

Union Bank of India Fixed Deposit Receipt

Another type of deposit scheme where a lower contribution is required to open the deposit account.
 

  • The minimum amount required to open this deposit scheme is Rs.10, 000
  • The interest on the deposit becomes payable every quarter
  • No charges on pre closure
  • No interest would be paid if the deposit is closed before the first 7 days of opening the deposit.
  • Nomination can be done under this scheme of deposit
  • Senior citizens are eligible to earn a 0.50% higher rate of interest on their deposits if they maintain their deposits for a minimum tenure of 1 year and above

Eligibility-

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.

Union Bank of India Monthly Income Scheme

This account can be opened by all resident individuals solely or jointly:
 

  • The deposit can be made for any period ranging from 6 month as the minimum to 10 years as the maximum
  • The interest earned on the deposits would be paid monthly which is why these deposits are named so.
  • This monthly interest would be 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 would earn a 0.50% higher rate of interest

Union Bank of India Deposit Reinvestment Certificate

A fixed deposit account yielding the highest return due to its cumulative nature. 
 

  • The interest is calculated on a compounded basis quarterly and is then reinvested in the deposit.
  • The minimum tenure of deposit is 6 months
  • The minimum amount of deposit is Rs.500 in metro
  • The facility of nomination is applicable on this deposit
  • Senior citizens would earn a 0.50% higher interest rate if the deposit is made for a period of 1 year and above

Eligibility-

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.

Union Bank of India Tax Saver Deposit

As is evident from the name of the deposit, this scheme is designed for the purpose of saving tax under Section 80C.
 

  • Only individuals and HUFs who have a valid PAN card and number can opt for this scheme of deposit
  • 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.5000
  • 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
  • The depositor can pledge the deposit as a security or collateral after the lock-in period of 5 years before.
  • Interest on the deposit might either be chosen to be received on maturity of the deposit or at regular quarterly or monthly intervals as decided by the depositor
  • Nomination is available

Union Bank of India Capital Gains Exemption Deposit Scheme

A scheme which has two account options and saves tax on capital gains.
 

  • The accounts facilitates saving tax on capital gains if such capital gains are submitted in the account before filing tax returns and are then utilized within a specified time period
  • The accounts can only be opened at metropolitan, urban or semi-urban branches of the bank
  • There are two types of deposits opened under this scheme
  • Deposit A is the savings account from which money can be easily withdrawn whenever required
  • Deposit B would act as a fixed deposit account with cumulative return of interest or periodical return of interest
  • The deposits in Deposit B account can be made in one lump sum or in multiple installments till filing for tax
  • Since Deposit B is a fixed deposit account, withdrawal of the amount deposited would only be after maturity

 

Union Bank of India Easy Tax Saver Deposit Scheme

The same deposit as the Union Tax saver Deposit but with different features.
 

  • The deposit in this scheme would be exempted for tax under section 80C
  • Deposits can be made either in lump sum or in specified monthly intervals
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