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    Overview of City Union Bank Fixed Deposit

    City Union Bank is one of the oldest banks in the country, having over a century of banking experience. The bank was initially known as “The Kumbakonam Bank Limited” and was established in the year 1904 by prominent citizens of Kumbakonam. Starting as a regional bank, the bank grew steadily over time and has its presence across the country today, with 485 branches in different states of India.

    City Union Bank strives to make banking a simple and hassle free task to its customers, adhering to strict standards of ethics and business to make banking an enriching experience. The bank is known for its transparency and integrity, a testament to its century long presence in the lives of its customers. It offers multiple banking products to its customers, with attractive rates, abiding by the rules framed by the Reserve Bank of India.

    Fixed Deposits from City Union Bank

    City Union Bank offers fixed deposits to suit different needs of a customer, providing fixed deposits for a particular period of time. Money deposited into City Union Bank fixed deposits earn simple interest which is payable flexibly, ensuring that every customer finds something to suits their requirements. The interest rate on these FDs is payable either on a monthly, quarterly, half-yearly or annual basis, depending on what a customer requires.

    City Union Bank offers fixed deposits for NRIs and resident Indians alike, with a NRE Fixed Deposit, a NRO Fixed Deposit and a regular Fixed Deposit to choose from. A NRE or NRO Fixed Deposit can be opened as either a cumulative or non-cumulative account, offering a high degree of flexibility to customers.

    Eligibility – who can open a fixed deposit account with City Union Bank?

    The eligibility criteria to open different fixed deposits with City Union Bank depend on the kind of fixed deposit one intends to open. These criteria are mentioned below for different FDs.

    • NRE Fixed Deposit – A NRE FD can be opened jointly with a NRI or a resident relative. One can opt for a survivor or former mode while opening such an account with City Union Bank. This FD can be opened either as a cumulative or non-cumulative deposit, as per a customer’s preference.
    • NRO Fixed Deposit – A NRO FD can be jointly opened by a Non-resident Indian or a resident, with an option between cumulative and non-cumulative deposit.
    • Regular Fixed Deposit – A fixed deposit at City Union Bank can be opened by individuals in their own names or two or more people in their joint names on either/jointly/former/survivor basis. A Fixed Deposit can also be opened by sole proprietorship concerns, private and public limited companies/organizations, partnership firms, clubs, associations, undivided Hindu families, etc.

    What are the terms of deposit available for fixed deposits at City Union Bank?

    City Union Bank offers fixed deposits with varying terms, enabling customers to choose a term which best suits their needs. The minimum term for a regular fixed deposit is 15 days with the maximum term set as 10 years. This maximum term, can, however be extended by the bank in certain cases which have a valid reason for extending this term, like interest of minors being in question or under the orders of a competent court authority. City Union Bank can extend the period of deposit to a maximum of 20 years in case of corporate bodies and governments, provided they have a valid reason for such an extension.

    The term of a NRE FD varies from a minimum of 1 year to a maximum of 10 years.

    What are the interest rates on City Union Bank fixed deposits?

    Interest rates offered by City Union Bank vary depending on the type of FD chosen and the term of a particular FD. Annual interest rates for regular fixed deposits vary from 6.75% pa to 8.50% per annum, depending on the term of a FD. A deposit of 1 year attracts an interest of 8.25% per annum, whereas a deposit for up-to 5 years attracts an interest of 8% per annum for general category. A deposit for a period greater than 5 years attracts an interest of 8% per annum, again for the general category.

    NRE FD interest rates also vary according to the term of a deposit, with an interest rate between 7.75% and 8.25% per annum. The highest interest rate is earned on deposits for a period of 1 year, with deposits for periods ranging between 3 and 10 years earning an interest of 7.75% per annum.

    NRO FDs have interest rates varying between 6.75% per annum to 8.25% per annum, depending on the term period of a deposit.

    Does City Union Bank offer special rates to senior citizens?

    Yes, City Union Bank offers special interest rates to senior citizens (individuals aged over 60). These rates are generally 0.25% higher than the general category, with rates as high as 8.50% per annum for certain fixed periods.

    Does City Union Bank allow premature closure of account?

    Yes, City Union Bank allows for pre-closure of an account, but no interest will be paid on such an account if it is foreclosed before a stipulated minimum term (set by the bank). Premature closure of an account before the maturity will attract a penalty, which is decided by the Bank’s policy. City Union Bank charges a penal interest of 1% on premature closure of an account/deposit.

    Can one avail a loan against a Fixed Deposit?

    Loans can be availed against the security deposit of a FD, subject to City Union Bank’s policy in place at time of applying for such a loan and subject to guidelines laid down by the Reserve Bank of India.

    Is the interest earned on a FD taxed?

    The interest earned on a NRE FD is tax free in India. Interest earned on other FDs is taxable in the country.

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