The City Union Bank is one of the oldest banks in the country, established as early as 1904. Headquartered in Thanjavur Tamil Nadu, the CUB has been offering various financial and banking services to its customers.
Among the various services the bank offers, the fixed deposit accounts has been highly regarded due to its advantages of high liquidity, attractive rates of interest, features of loans and tax benefits.
The City Union Bank offers various types of fixed deposits for its domestic customers such as the Standard fixed deposit, the Tax-Saver fixed deposit and the Flexifix deposit.
For a Standard fixed deposit, 7 days is the minimum tenure and 10 years is the maximum. Minimum amount to be paid for opening a fixed deposit account with CUB is Rs.100.
Interest rates for City Union Bank fixed deposits of less than Rs.1 crore are:
| Tenure bracket | Regular FD rates (per annum) | Senior Citizens FD rates (per annum) |
|---|---|---|
|
7 days to 3 months |
6.25% |
6.25% |
|
More than 3 months to 6 months |
6.75% |
6.75% |
|
More than 6 months to less than 1 year |
7.00% |
7.00% |
|
1 year to 5 years |
7.35% |
7.50% |
|
More than 5 years to 10 years |
6.70% |
6.95% |
CUB also offers a type of fixed deposit from which you can receive tax benefits upto Rs.1,50,000 according to Section 80C of the Income Tax Act.
The tenure for a tax-saver term deposit is for a fixed period of 5 years. The rate of interest received is 7.35% per annum for both senior and regular citizens.
The City Union Bank also offers a term deposit for a fixed period of 1000 days. This is only applicable for a regular citizen, association or trust. The rate of interest is also fixed at 7.60% per annum for this deposit.
The City Union Bank also offers term deposits for Non-Resident Indians. The types of term deposits offered by CUB for NRIs are:
The NRE term deposit by CUB can be opted for a minimum tenure of 1 year to 10 years. In this term deposit a NRI citizen can deposit his or her earnings but in the Indian currency only.
There are no benefits for senior citizens and the interest earned in this term deposit is exempted from any tax.
The interest rates for a NRE term deposit are:
| Tenure | Rate of interest(% p.a.) |
|---|---|
|
1 year to 999 days |
7.35% |
|
1000 days |
7.60% |
|
More than 1000 days to 5 years |
7.35% |
|
More than 5 years to 10 years |
6.70% |
In the case of a NRO term deposit, the tenure ranges from a minimum of 7 days to 10 years. The interest gained in a NRO term deposit is taxable and partially repatriable.
Rate of interest for a NRO term deposit is the same as the domestic rates of interest.
A customer can opt for a FCNR term deposit if he or she wishes to deposit his or her earnings in a foreign currency.
The City Union Bank accepts the universally recognised currencies such as the United States Dollar, Australian Dollar, Great Britain Pound, Japanese Yen, Canadian Dollar, Singapore Dollar and the Swedish Krona.
Tenure for a FCNR term deposit ranges from a minimum of 1 year to a maximum of 5 years and interest earned is tax free.
Principal amount along with the interest is fully repatriable and loans can be taken against the deposit made.
Interest rates for FCNR term deposit are:
| Tenure/Currency | SEK | JPY | SGD | EUR | CAD | USD | AUD | GBP |
|---|---|---|---|---|---|---|---|---|
|
1 year to less than 2 years |
1.05% |
1.29% |
3.24% |
1.04% |
3.80% |
4.13% |
3.21% |
2.18% |
|
2 years to less than 3 years |
1.27% |
1.32% |
3.39% |
1.14% |
3.95% |
4.30% |
3.29% |
2.37% |
|
3 years to less than 4 years |
1.73% |
1.59% |
3.73% |
1.54% |
4.26% |
4.58% |
3.61% |
2.72% |
|
4 years to less than 5 years |
1.92% |
1.61% |
3.80% |
1.70% |
4.29% |
4.61% |
3.87% |
2.80% |
|
5 years |
2.10% |
1.64% |
3.86% |
1.85% |
4.31% |
4.62% |
3.97% |
2.86% |
City Union Bank also offers RFC term deposits for customers who are currently abroad but wish to settle down in India.
A minimum tenure of 1 year to a maximum of 3 years is the tenure for a RFC term deposit. Like FCNR deposits, RFC also accepts deposits made in foreign currency but only in the 4 major currencies accepted all over the world which are USD, GBP, SGD and EUR.
Interest rates for RFC term deposits are:
| Tenure/Currency | GBP | USD | SGD | EUR |
|---|---|---|---|---|
|
1 year to less than 2 years |
2.18% |
4.13% |
3.24% |
1.04% |
|
2 years to less than 3 years |
2.37% |
4.30% |
3.39% |
1.14% |
|
3 years only |
2.72% |
4.58% |
3.73% |
1.54% |
NRE deposits were also affected with old rates being completely scrapped. Earlier the interest offered was 7.75% on deposits of 1 year to 3 years. City Union Bank offered 7.50% p.a. for deposits above 3 years upto 10 years. The bank has now introduced three different interest rates depending on the tenure of the deposit. The new rates offered are 7.60% p.a. for 1 year tenure, 7.25% p.a. for above 1 year to 5 years, and 7.00% p.a. for above 5 years to 10 years. The interest rate offered on NRE Savings Accounts remains the same at 4.00% p.a.
14 July 2016
City Union Bank has released new fixed deposit rates. The new rates are applicable from 11th July 2016. The rates were changed for the deposits below Rs.1 crore. The rates for deposits with tenures of 181 days to 364 days fell from 7.65% p.a. to 7.60% p.a. for the general and senior citizen classes. For deposits of 1 year, rates fell from 7.75% to 7.60% for the general public, while for senior citizens it dropped from 8.25% p.a. to 8.00% p.a. For deposits that are above 1 year and up to 5 years, the rates fell significantly from 7.75% p.a. to 7.25% p.a. For senior citizens with the same deposit, rates fell from 8.00% p.a. to 7.50% p.a. Deposits above 5 years to 10 years were also affected falling by 0.50% p.a. for both the general and senior citizen categories. Tax Saver Schemes dropped from 7.75% p.a. to 7.60%.
14 July 2016
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